Can Grants Pay for Salaries? The Shift Toward General Operating Support

Melanie Lambert
Jun 5
5 min read

balance with wooden people on the left and coins on the right

For years, nonprofit leaders have heard the same advice:

"Don't ask foundations to pay for salaries."

"Funders only want to support programs."

"Administrative costs won't get funded."

As a grant consultant, I still hear these concerns regularly. And while some funders continue to focus primarily on project-specific grants, the reality is that philanthropy has evolved.

Today, many foundations recognize that strong programs require strong organizations. As a result, there has been a significant shift toward general operating support grants, capacity-building investments, and unrestricted funding that allows nonprofits to strengthen the people, systems, and infrastructure necessary to achieve their mission.

If you've been removing salaries, technology, evaluation, or administrative costs from your grant budgets because you assume they won't be funded, it may be time to rethink your strategy.

What Is General Operating Support?

General operating support (sometimes called unrestricted funding, core support, or operating support) provides nonprofits with flexible funding that can be used where it is needed most rather than being restricted to a specific project or program.

Unlike program-specific grants, general operating support grants allow organizations to invest in the foundational resources that make mission delivery possible.

Examples of expenses commonly supported through general operating funding include:

Staff salaries and benefits
Technology and software
Rent and utilities
Strategic planning
Professional development
Evaluation and data collection
Board development
Communications and marketing
Organizational capacity building

At its core, general operating support acknowledges a simple truth: nonprofits need strong infrastructure to deliver strong programs.

Why Foundations Are Changing Their Approach

Historically, many grantmakers prioritized direct program expenses while limiting support for operational costs. This approach often created what nonprofit leaders referred to as the "starvation cycle"—a system where organizations were expected to deliver increasingly complex services without adequate investment in staff, technology, leadership, and organizational capacity.

Over time, funders began recognizing something nonprofit professionals have long understood:

Programs don't run themselves.

Successful programs require qualified staff, effective leadership, reliable technology, sound financial management, data collection systems, and organizational stability.

Research from the Center for Effective Philanthropy (CEP) demonstrates growing support for multiyear and unrestricted funding among both nonprofit leaders and foundation executives. CEP's research suggests that funders increasingly recognize the value of investing in organizational health as a pathway to greater mission impact.

The Rise of Trust-Based Philanthropy

One of the most significant drivers behind the growth of general operating support grants is the rise of trust-based philanthropy.

Trust-based philanthropy encourages funders to build stronger partnerships with nonprofit organizations by reducing administrative burdens, simplifying reporting requirements, and providing more flexible funding.

The Trust-Based Philanthropy Project identifies multi-year unrestricted funding as one of its core grantmaking practices because it allows nonprofit leaders to allocate resources where they are needed most and respond to emerging community needs.

Instead of controlling every spending decision, trust-based philanthropy focuses on empowering organizations that have demonstrated effectiveness and community impact.

Major Foundations Are Leading the Way

Several influential foundations have helped accelerate the movement toward general operating support.

One of the most notable examples is the Ford Foundation's BUILD initiative. Through BUILD, the Ford Foundation has invested in multi-year general operating support combined with organizational strengthening resources to help nonprofits build resilience, strengthen leadership, and increase long-term sustainability.

Additionally, philanthropist MacKenzie Scott has transformed conversations around nonprofit funding through her practice of providing large unrestricted gifts to nonprofit organizations.

Research conducted by CEP found that recipients of MacKenzie Scott's gifts experienced improved financial stability, increased organizational capacity, and enhanced community impact as a result of receiving flexible funding.

Is General Operating Support Actually Becoming More Common?

Many nonprofit leaders understandably ask whether this shift is real or simply a handful of highly publicized examples.

The available data suggests that the trend is real.

According to Candid, foundations significantly increased unrestricted and general operating support funding during the COVID-19 pandemic. More importantly, many grantmakers have maintained more flexible funding practices even after emergency pandemic funding ended.

Similarly, Grantmakers for Effective Organizations (GEO) reports that many foundation leaders continue to increase unrestricted giving and multiyear grantmaking as part of broader efforts to strengthen nonprofit sustainability and resilience.

While not every foundation offers unrestricted funding, there is growing evidence that general operating support grants are becoming a more accepted and strategic component of philanthropic giving.

Can Grants Pay for Salaries?

The short answer is:

Yes, many grants can pay for salaries.

The better question is whether salary expenses align with the funder's priorities and the outcomes your organization is working to achieve.

The strongest grant requests don't simply ask a foundation to fund a position. Instead, they demonstrate how staff members directly contribute to mission impact.

For example:

Instead of saying:

"Funding will support the Program Director's salary."

Consider:

"Funding will support the Program Director responsible for coordinating services, managing partnerships, overseeing program implementation, tracking outcomes, and ensuring successful service delivery for 250 youth annually."

This approach helps funders understand that personnel costs are not merely administrative expenses—they are often essential investments that drive measurable outcomes.

When Should Nonprofits Include Salaries in a Grant Budget?

Salary requests are often appropriate when:

The funder offers general operating support grants.
Personnel expenses are directly tied to program delivery.
Staff members are responsible for achieving project outcomes.
Capacity building is a stated funding priority.
The request aligns with the foundation's published guidelines.

The key takeaway is simple:

Don't automatically assume salaries are ineligible.

Review the guidelines carefully and evaluate whether operational expenses are appropriate based on the funder's priorities.

What This Means for Nonprofits in 2026

Nonprofits today face increasing demand for services, workforce challenges, rising costs, and growing expectations from both funders and communities.

As a result, many foundations have begun shifting their focus from funding isolated programs to strengthening the organizations responsible for delivering them.

The most successful grant seekers today understand that sustainable impact requires more than good ideas.

It requires:

Skilled staff
Strong leadership
Effective systems
Reliable technology
Meaningful evaluation
Financial stability

In other words, it requires organizational capacity.

And increasingly, funders are willing to invest in that capacity.

Final Thoughts

The belief that foundations only fund direct program expenses no longer reflects the full reality of today's philanthropic landscape.

While program-specific grants remain an important part of nonprofit funding, there is substantial evidence that many grantmakers are embracing general operating support grants, unrestricted funding, and capacity-building investments that strengthen organizations from the inside out.

The next time you're developing a grant budget, don't automatically remove salaries, technology, evaluation, or operational expenses from consideration.

You may be overlooking funding opportunities that are specifically designed to help your organization build long-term sustainability and impact.

Need Help Determining the Right Funding Strategy?

Not sure whether your organization should pursue program funding, capacity-building grants, or general operating support grants?

At Just Write Grants, we help nonprofits identify funders that align with their goals, budget needs, and organizational priorities. Through our Strategic Grant Review service, we'll evaluate your funding strategy, identify potential gaps, and help position your organization for long-term funding success.

Whether you're building a grant budget, evaluating a funding opportunity, or determining the best path forward, we're here to help you make informed decisions that strengthen your organization's future.

Schedule a free consultation today and discover how a stronger grant strategy can help your nonprofit secure the resources it needs to thrive.