General Operating Support: An Action Guide

Perhaps you are a grantmaker interested in providing general operating support, but may not have a good grasp of the issues involved. Grantmakers for Effective Organizations has just published the guide that you have been waiting for.

Simply titled General Operating Support, this booklet explains what general operating support is, why it is important, and how grantmakers can approach this type of funding. A sidebar provides advice on making the case to the board. Here are two examples from the "Debunking the Myths" section.

Myth:

“We’re adequately supporting nonprofit infrastructure through the overhead associated with our project grants.”

Reality:

Grantmakers rarely cover all associated direct and indirect costs of funded projects. In some cases, this is because nonprofits lack the capacity to account for such costs accurately. More often, it is because the percentages grantmakers allow are arbitrary and too low.

Myth:

“General operating support grants are not as accountable as restricted project grants.”

Reality:

Because project grants are designated for a specific purpose and a specific set of activities, it is easier to track those funds. However, if you are interested in understanding the organization’s progress or outcomes, there is very little difference in accountability between project and general operating support. In both cases, the grantmaker needs to work with the grantee to design evaluation questions that clarify the impact of the grantee’s work.

Learn more about this guide at the Grantmakers for Effective Organizations web site. You can request a copy by contacting Dakota Fine at fine@geofunders.org.