What is Giving Compass?
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When funders give general operating support, they help sustain a nonprofit’s mission rather than specific projects. Nonprofits can use these funds to improve their organization in any way they choose, such as adjusting salaries, investing in technology, or improving fundraising efforts. Foundations with few or no staff are especially good at offering this support because they often know the communities well and have strong relationships with nonprofit leaders.
General operating grants are valuable because they:
- Allow nonprofits to focus on their main mission and build infrastructure instead of taking on extra projects and fundraising.
- Show confidence in nonprofit leaders, reducing burnout.
- Reduce the power imbalance between funders and nonprofits, shifting the focus to the grant’s outcomes and the organization’s overall impact.