7 Expert Strategies for Winning Unrestricted Funding

Recent research from foundations shows some encouraging trends: according to the 2024 Foundation Operations and Management Report, over two-thirds (69%) of foundations provided general operating support to grantees, with these foundations allocating an average of 52% of their total grant budget to unrestricted funding. Even more encouraging, the percentage of foundation budgets allocated to general operating support has increased significantly over the past five years, from 44% in 2018 to 52% in 2022. The challenge isn't that these grants don't exist—it's knowing how to position your organization to win them.

Why General Operating Grants Are Worth the Effort

Before we dive into strategy, let's remember why these grants are so valuable. General operating support provides the flexibility that restricted grants simply can't offer. It allows you to:

• Respond to unexpected opportunities without waiting for funder approval

• Cover essential operational costs like salaries, rent, and utilities

• Invest in capacity building when your organization is ready to grow

• Weather unexpected challenges with financial cushioning

• Focus on your mission rather than managing multiple restricted funding streams

A program officer from the Community Foundation of Northeast Florida recently told me, "We give general operating support because we trust the organization's judgment about how to best advance their mission."

7 Expert Strategies for Winning General Operating Grants

1. Build Genuine Relationships Before You Apply

General operating grants are fundamentally about trust. Foundations need to believe in your organization's leadership and decision-making before they'll provide unrestricted funding.

Action Step: Start cultivating relationships 6-12 months before you plan to apply. Attend foundation information sessions, engage meaningfully on social media, and share updates about your work (not just funding requests).

2. Demonstrate Your Path to Sustainability

Funders want to see that their general operating support will help you build a stronger, more sustainable organization—not create dependence on their funding.

Action Step: In your proposal, clearly articulate how the grant will help you diversify revenue streams, build capacity, or achieve specific sustainability milestones. Show them you have a plan beyond their grant.

3. Lead with Impact, Not Need

While operational needs are real, leading with your organization's impact and potential resonates more strongly with funders considering general operating support.

Action Step: Start your proposal with compelling stories and data about your impact, then connect that impact to how unrestricted funding would amplify your effectiveness.

4. Show Organizational Maturity

Foundations typically reserve general operating grants for organizations that demonstrate strong leadership, sound financial management, and clear strategic direction.

Action Step: Highlight recent organizational accomplishments like strategic planning processes, leadership development, new partnerships, or systems improvements that show your capacity for stewardship.

5. Be Specific About Flexibility

It sounds contradictory, but you need to be specific about how you'll use flexible funding. Vague statements about "keeping the lights on" don't inspire confidence.

Action Step: Provide a thoughtful breakdown showing how you might allocate the funds (perhaps 40% for core staffing, 30% for program expansion, 20% for technology upgrades, 10% for unexpected opportunities), while emphasizing that the flexibility allows you to adjust as needs evolve.

6. Address the "Why Now?" Question

General operating grants often come at strategic moments in an organization's development. Be clear about why this is the right time for unrestricted support.

Action Step: Connect your request to a specific organizational moment: launching a strategic plan, emerging from a challenging period, preparing for growth, or celebrating a milestone that positions you for greater impact.

7. Target the Right Funders

Not all foundations are equally open to general operating support. Focus your energy on funders who explicitly mention unrestricted funding in their guidelines or have a track record of providing it.

Action Step: Research foundations' 990s and annual reports to identify those that regularly provide general operating support. Look for language like "organizational support," "unrestricted funding," or "capacity building."

When to Make the Ask

The best time to request general operating support is when you can demonstrate:

• Strong organizational leadership and governance

• Clear strategic direction

• Recent programmatic successes

• Sound financial management

• A compelling vision for how unrestricted funding would advance your mission

Remember: foundations often provide general operating support to organizations they already know and trust. If you're a current grantee with a track record of success, renewal time might be perfect for transitioning from project-specific to unrestricted funding.