When to apply for general operating funding vs. program funding


Tracy Babler & Associates

@nonprofitgrantmagic

It's mid-January and the new funding opportunities are rolling into my inbox. When you see a new opportunity for your nonprofit organization, the first question to ask yourself is: what type of proposal could I write? The main categories are general operating (also known as genops), program/project, and capital grants.

Types of grants

New grantwriters often struggle with how to shape their proposal—should you ask for general operating funding or program funding?

Let’s start with some definitions.

General operating funding: This is funding that you can spend on any expenses in your organization. It is highly flexible and highly desirable funding. Typically, you would submit your annual organizational budget as part of this proposal.

Program funding is funding for a specific program or project within your organization. Program funding is more restrictive funding that can only be spent on the purpose you describe in your proposal. Typically, you would submit both your annual organizational budget and a program/project budget with this application.

Capital funding: Capital funding supports investments in buildings, facilities, equipment, or property. This is highly restrictive funding that can only be used for capital purposes and associated expenses in the capital budget. Typically, you would submit both your annual organizational budget and a capital budget with this type of request.

How to choose what to submit

If your organization is eligible to submit a general operating request you will usually want to do so. This is because general operating support can fund everything your organization needs to keep its doors open, including staff, rent, insurance, software, and more. General operating funding also enables your organization to respond to emerging needs throughout the grant period.

If general operating funding is not an option, you will want to apply for program support only if the funding source is a match for programming you are already planning to do. You usually do not want to invent new programming to fit a funder’s guidelines. That is a recipe for mission creep and for boxing your organization into unplanned commitments rather than the work you know is most needed and your organization is best suited to do.

Examples

Usually, a funder’s guidelines or requests for proposals will stipulate the type of funding your organization can apply for. Click through to these recent examples that have come across my inbox and see if you can figure out how to determine eligibility.

AmplifyHer Foundation: This foundation is funding either general operations OR programs. The criteria are that to apply for general operations, your organization must be located in NYC with a mission focused on women and/or girls.

F.R. Bigelow Foundation: This foundation is seeking proposals only for general operations or capital support. To be eligible to apply, at least 50 percent of an organization’s work must take place in the East Metro counties of the St. Paul-Minneapolis region.

CFF Rapid Response Fund: This is an example of a funding program that doesn’t explicitly say whether they fund general operating or program support. They are asking that “the work” be focused on the criteria outlined, so it’s up to the grantseeker to determine how to craft a proposal. Given how specific the guidelines are, it would likely be easiest to craft a project proposal.

Were you able to find the criteria on the funder’s sites? Keep practicing your ability to determine what type of funding your organization is eligible to apply for from each funding source. This is a critical first decision every time you decide to apply for funding!

National Funding Opportunity of the Week

The Nathan Cummings Foundation has issued a call for proposals in the areas of racial justice, economic justice, and environmental justice.

Funding is available for both grants and program-related investments (PRIs) at multiple stages of organizational capacity.

Check it out and see if your organization is a fit!

Do you have a lead on a national funding source that people in this community should know about? Share it with us!

In case you missed it...

That’s all for this week!

Tracy

Founder, Tracy Babler & Associates LLC
@nonprofitgrantmagic

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Nonprofit Grant Magic

Hi, I’m Tracy! I’m an entrepreneur and grantwriter who teaches nonprofit professionals and aspiring grantwriters to gain the skills and knowledge to feel confident writing grant proposals or launching a brand new career as a grantwriter. I’m a nonprofit communicator, fundraiser, and small business owner. When I’m not hanging out with my family and my Bernedoodle, I’m gardening, watering my 40+ plants, playing pickleball, or making a home-cooked dinner. But my first passion is to raise money for the nonprofits that I work for and care so much about. And after 20 years of grantwriting, I’m now dedicated to teaching more people to write grants because the demand for our work is greater than ever—and really important organizations need us.

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