Key Term

What is General Operating Support?

Definition

General Operating Support refers to unrestricted funding that nonprofit organizations can use to carry out their mission, maintain their infrastructure, and cover essential overhead costs. This type of funding can be used for any legitimate purpose, including staff salaries, rent, utilities, technology, professional development, and other day-to-day operational expenses that keep the organization running effectively.

Significance

General Operating Support is critically important in the charitable giving landscape because it provides nonprofits with the flexibility and stability they need to sustain their operations and respond to changing circumstances. Unlike restricted grants that must be used for specific programs or projects, general operating support allows organizations to invest in their infrastructure, build capacity, and maintain financial health. This type of funding is often considered the most valuable form of charitable giving because it enables nonprofits to focus on their mission rather than constantly seeking funds for basic operational needs. However, many donors historically have been reluctant to provide general operating support, preferring to fund specific programs, which has created challenges for nonprofit sustainability.