General Operating Support vs Project Grants

When you read a foundation's grant list, you will see two broad kinds of support: general operating grants and project or program grants. The difference shapes how you apply, how flexibly you can use the money, and how you report on it.

General operating support

General operating support — sometimes called unrestricted or core support — funds your organization as a whole rather than a specific program. You can spend it on rent, salaries, the work itself, or whatever keeps the organization healthy. It is the most valuable kind of grant to receive, because it gives you flexibility and stability, and it is also historically the hardest kind to win.

Project and program grants

Project grants fund a specific, defined piece of work — a particular program, a new initiative, a defined set of activities — and the money must be spent on that. Most foundation grants are project grants. They are easier for a funder to evaluate because the goals and results are concrete, which is part of why they are more common.

Which to ask for

Ask for what the funder gives. If a foundation's recent grants are all project grants, frame your request as a project even if your real need is general support; if a funder is known for operating support, ask for it directly. Forcing a request into a form the funder does not use is a quiet way to lose. The clue, as always, is in the funder's giving record.

A note on overhead

Even project grants should include a fair share of overhead — the real cost of the staff, space, and systems that make the project possible. Underfunding overhead to look lean is a long-term mistake. Strong funders understand that programs do not run on program costs alone, and a well-built project budget reflects that.