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General Operating Support or General Project Support
Affirmation: Funds with the least restrictions are the most valuable
Nonprofits maintain and strengthen their organizations when their funds are unrestricted. Data shows flexible and reliable funding increases impact when nonprofit leaders have control over how funds flow to meet the needs of their constituents and internal operations, as demonstrated during the pandemic when funders released previously restricted funding. General operating support (GOS) funding signals trust in our partners and can open more honest dialogue about meeting the mutual goals of the funder and nonprofit. Funders who make project or program grants should trust the organization and provide flexible funding within a specific program.
Activities
• Over the short term, funders aim to shift their GOS activity by 30%. (30% more grants shift from program to GOS, or from fully restricted to negotiated GOS.)
• Provide grants as unrestricted organizational general operating support. The long-term ideal is for most, if not all, grants to be 100% GOS, unless a funder is legally precluded from doing otherwise.
• For project/program grants, 100% of the grant awarded is unrestricted (negotiated GOS), applying mission-based and mutually negotiated outcomes.
• Nonprofits articulate their organizational vision, strategies and intended outcomes to funders; funders understand the models of their grantee partners and learn from them how the grantee partner's work will lead to change.
• Trust nonprofit partners to know how to best apply their funding.
• Create a shared understanding of the meaning and importance of full-cost budgeting and real-cost funding.
Short-term Outcomes
• 70% of funders are shifting some of their distribution to making general operating support grants.
• 100% of program/project grants are designated unrestricted.
Long-term Outcomes
• 100% of all grants are made without restrictions, unless limited by covenant or donor wishes in the case of community foundations.
• All nonprofits can clearly articulate their vision, strategies, outcomes, and business models to funders; and funders understand them and trust them to know how best to use their funds.
How to Begin Doing Good Better on Flexibility Learning Opportunities
• Why aren’t some funders planning to award GOS or negotiate GOS?
• Ask funders: If you participated in CNJG’s 2022 funder survey and indicated that you planned to initiate GOS, have you done so? • Why are some grants restricted?
• What would it take for funders to change?
Pre-Work
• Seek and share learning opportunities for funders, prioritizing education of foundation boards, to address the barriers to awarding GOS and understand how restricted funding undermines financial sustainability.
• For funders who already regularly provide GOS funding, educate/advocate for others to do the same.
• Learn how GOS/negotiated GOS strengthens grantee partners and the multiple ways they can use and evaluate GOS. Actively seek insights from nonprofits to reinforce the message about GOS in their funding partnerships.
• As an incremental step for funders that are not receptive to GOS, provide education about negotiated general programming support (flexible funding within a mutually agreed-upon program area, as opposed to organization-wide GOS).
• Share promising practices on evaluation of GOS and negotiated GO
The National Center for Family Philanthropy and Youth Philanthropy Connect, a program of the Frieda C. Fox Foundation, have joined together to bring new resources to the field of philanthropy focused on engaging the next generation of donors and family members. Igniting the Spark: Creating Effective Next Gen Boards is the first publication of its kind, offering a comprehensive overview of the growing practice among family foundations and donor advised fund holders of using next generation boards.
The issue brief outlines creative options for involving children as young as 8 in family philanthropy. It is supplemented by case studies of seven foundations using next gen boards and other approaches for engaging youth in philanthropy. Throughout both resources, the voices of next gen donors describe what works — and what doesn’t — providing family members and staff with guidance and insights new to the field.
In 2003, with member support, CNJG commissioned a report on the impact a potential conversion of Horizon Blue Cross Blue Shield to a for-profit might have on access to health care in New Jersey. Research from the Center for State Health Policy (CSHP) at Rutgers University, provided details about the law governing such conversions in New Jersey and the experience of other states with conversions. The report identified questions raised in other states when such conversions occur, especially about the valuation of assets, the impact on low-income families, and the operation of the philanthropic foundations that have been established as stewards of the assets generated by the conversions. CNJG’s purpose was to seek answers to critical questions relevant to the availability of healthcare coverage for New Jersey’s citizens and to discuss models of best practice for healthcare conversion foundations across the United States.
Sample board committee descriptions, including roles and responsibilities of committee members
CNJG's Storify content from their Signature Events.
A key objective of the Scaling What Works initiative has been to translate insight and learning from grantmaker intermediaries involved with the Social Innovation Fund and share them with the broader philanthropic community. The fifth guide in the Lessons Learned series presents the benefits and challenges of partnerships between local and national funders, and highlights key considerations for both kinds of funders to foster success in their collaboration.
The Trust-Based Philanthropy Project is pleased to announce a six-part webinar series addressing common questions, clarifying misconceptions, and exploring ways to overcome obstacles in implementing trust-based philanthropy. CNJG is pleased to share this opportunity with our members.
Series Description: Trust-based philanthropy is a philosophy and approach rooted in values of relationship-building, mutual learning, and systemic equity – with a vision of advancing a healthier and more impactful nonprofit sector. While this approach is generally associated with six core grantmaking practices such as multi-year unrestricted funding and streamlined paperwork, the day-to-day work of trust-based philanthropy is very nuanced and dynamic. In fact, funders who have embraced this approach are finding that it requires ongoing self-reflection and rigor with regards to how they think about – and evolve – many of the deeply embedded practices and assumptions of traditional philanthropy.
Given these nuances, it is not surprising that there are many questions and occasional misperceptions about what it actually means to embody trust-based philanthropy in practice. In this 6-part webinar series, the Trust-Based Philanthropy Project will explore some of the most commonly asked questions and the underlying misperceptions that may be roadblocks to understanding and operationalizing trust-based philanthropy.
Each session in the series will focus on a frequently asked question from the field, and will feature perspectives from foundation leaders and others who have grappled with similar or related questions. At the end of each session, participants will walk away with: 1) a deeper and more nuanced understanding of the underlying cultural philosophy of trust-based philanthropy; 2) tips for how to think about and approach these nuances in their own work; and 3) talking points for how to answer these FAQs when they come up from colleagues or peers.
Each session will also provide dedicated space for small-group peer dialogue (among CNJG members) about ways to implement these practices into your grantmaking.
Who should attend: Anyone in a grantmaking role that is curious about understanding the nuances of trust-based philanthropy and how it applies to your work. This series will be ideal for those who have some baseline familiarity with trust-based philanthropy and have questions about how it manifests in practice.
Please note: this webinar series is separate from CNJG’s 2023 Conference for the Social Sector, which features an in-person luncheon keynote by the Trust-Based Philanthropy Project. CNJG’s conference is open to both funders and nonprofits, so the keynote will differ from this series. Because CNJG’s Doing Good Better initiative leans on the principles of Trust-Based Philanthropy, we encourage our members to register for these sessions - as time allows - for funders to learn about different approaches to changing systems in New Jersey.
Demystifying Trust-Based Philanthropy Series Sessions
Session #1: Does Trust-Based Mean Unconditional Trust?
Session #2: Does Unrestricted Funding Automatically Make a Funder Trust-Based?
Session #3: How Do We Approach Risk and Due Diligence in Trust-Based Philanthropy?
Session #4: What Does Grantee Accountability Look Like in Trust-Based Funding?
Session #5: How Do You Measure Impact in Trust-Based Philanthropy?
Session #6: What Does Racial Equity Have To Do With Trust-Based Philanthropy?
Resources
Recording: Session #1: Does Trust-Based Mean Unconditional Trust?
Transcript: Session #1: Does Trust-Based Mean Unconditional Trust?
Presentation: Session #1: Does Trust-Based Mean Unconditional Trust?
The 6 Practices of Trust-Based Philanthropy
Trust-Based Philanthropy in 4D Overview
Legal Considerations for Trust-Based Philanthropy
This paper explores community democracy as a cultural choice and a potential organizing system for philanthropy using stories that demonstrate its principles and practices, primarily growing from the experience of northern California communities. This experience offers a framework of principles and a beginning set of conclusions about how philanthropy can develop productive partnerships from the perspective of a place-based, community democracy.