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Nonprofits Need More Operating Support, Study Says
March 16, 2007

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Funding Tips & Trends 

Most grantmaking is program- or project-specific, but what nonprofits really need from funders is general operating support, a new study says.

The National Committee for Responsive Philanthropy report, "A Call to Action: Organizing to Increase the Effectiveness and Impact of Foundation Grantmaking," includes comments from more than 120 nonprofit leaders. Many said that the bias toward project-oriented funding hinders crisis-management as well as their ability to start new initiatives, improve infrastructure, and pay staff salaries. Some admitted to "creative" grantwriting in order to meet expenses not technically covered by foundation funding.

"After listening to people who do the real in-the-trenches work for nonprofits across the country, we learned that the lack of general support funding has a serious impact on the effectiveness of foundations and nonprofits, and also on foundation-grantee relationships," said NCRP executive director Aaron Dorfman. "The need for sweeping change in foundation grantmaking practices is undeniable."