Looking for flexible funding? Follow this step-by-step guide to discover everything you need to know about operational grants for nonprofits and how to create a compelling application.
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Most nonprofits aim to spend 65-85% of their annual budget on program-specific expenses. These are the expenses that make the mission happen – and they’re the ones donors are most excited to fund.
But the remaining 15-35% of the budget goes toward other, less glamorous expenses that are critical for keeping doors open and lights on. That’s where operational grants come in.
These types of grants are a vital lifeline for nonprofits, helping cover day-to-day expenses that donations alone might not fully support.
Finding and securing these grants can feel tricky and time-consuming, so we’ve put together this step-by-step guide to help you find operational grants, apply with confidence, and spot funding that is truly flexible.
Operational grants are designed to help nonprofits cover the essentials that keep your organization running smoothly. Think things like salaries, rent, utilities, and other operational expenses.
Unlike program-specific or restricted grants, which must be used for a particular project, general operating grants for nonprofits are usually unrestricted. In other words, you have the flexibility to spend the funds where your nonprofit needs them most.
Here are some examples of how nonprofits like yours can use operational grants:
While this flexibility is a big advantage, operational grants can be harder to get. Many foundations don’t accept unsolicited applications and often have strict eligibility rules and timelines.
Grants for nonprofit operating expenses aren’t one-size-fits-all. Different nonprofits have different needs, and there are several types of grants designed to match those unique requirements.
Some of the most common types include:
One of the top places to look for operational grants is online grant databases. Easily browse and filter through hundreds of grants on sites like GrantWatch, Grants.gov, and Instrumentl.
Many foundations share new funding opportunities directly through their newsletters. Sign up for local and national foundation email lists to stay in the loop about open applications, deadlines, and updates.
You can also tap into philanthropic networks and nonprofit associations right in your area. Just hop online and search “nonprofit association near me.”
These groups are often a gold mine of information, highlighting local funders, sharing upcoming operational grant opportunities, and even offering helpful grant-writing resources.
If you’re looking for operational funding, several well-known foundations offer open-application or regularly accessible opportunities for nonprofits.
Here are a few to check out:
Start by reviewing the foundation or funder’s guidelines carefully. Make sure your nonprofit meets all criteria, including:
Clearly showcase why your organization needs funding. Highlight your mission, current challenges, and how operational support will help sustain and grow your impact.
Don’t forget to include a detailed budget showing where funds will be used.
Take the time to learn about the foundation’s mission and values. Then, make sure your nonprofit’s work aligns with what they fund, and look for shared goals that strengthen your case.
If you can, reach out and start a conversation with the funder, introducing your organization and learning more about what they care about.
Funders want to see that your organization is connected with your community and making a difference.
So, highlight collaborations with other nonprofits, community programs, or local organizations, and share some stories that illustrate your impact.
While not always necessary, a nonprofit grant writer can help you create a compelling application, ensure you follow all guidelines, and increase your chances of success.
Before submitting your grant application, make sure you have all the necessary documents ready, like your letter of determination, financial statements, and annual reports.
Use Donorbox to make the reporting process much easier. Our powerful platform not only helps with reporting, but also strengthens your overall fundraising strategy.
Easily track donation data, showcase supporter engagement, and export financials to include in your grant proposals.
Features like recurring donations, customizable donation pages, and donor management tools also give you reliable revenue streams alongside grants.
Want more flexibility with your grant? Before applying, look for these signs that the grant is unrestricted:
Operating grants for nonprofit organizations provide the flexibility your nonprofit needs to cover day-to-day expenses and strengthen your organization.
While securing these grants takes research and planning, the right tools can make the process easier.
With Donorbox, you can streamline fundraising, track donations, and manage financial reporting, giving you a reliable foundation of support alongside grant funding so your nonprofit can focus on what matters most: your mission.
With a background in professional writing, Lydia brings over 10 years of experience in nonprofit communications under her belt, with a strong focus on fundraising and donor engagement. Her passion for supporting nonprofits was sparked during college internships with global mission organizations, where she gained hands-on experience with fundraising marketing strategies.
Lydia went on to serve for more than eight years as a Church Communications Director, overseeing both internal and external communications to clearly communicate the church’s mission, build trust with members, and encourage generosity through accessible tools like online and recurring giving. In this role, she partnered closely with church leadership to support giving campaigns and highlight the real-life impact of financial support through storytelling.
These experiences have continued to fuel her dedication to empowering nonprofits through her writing.
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