According to Investing in Native Communities, a 2019 report by Candid and Native Americans in philanthropy, nationally, 56% of grant dollars to Native-led organizations were for program support. Further, funders gave only 15% of grant dollars for general operating support. During a recent evaluation of the Colorado Plateau Foundation’s grantmaking, grantees repeatedly stated that program or project-specific grants often limit program growth and the organization’s sustainability because of restrictions on one area. For Native-led non-profits and tribes across the Colorado Plateau, solutions to their communities’ issues require holistic grantmaking, including demonstrating trust, relinquishing budget decisions, and simplifying documentation. In 2018, CPF began providing general operating support to qualified grantees. All of which CPF had a longstanding relationship with. CPF witnessed the benefits of offering general operating support grants. Below are the three primary reasons CPF continues to offer this unique support.
General Operating Support Builds Trust
Conventional approaches to philanthropy focus on top-down charitable giving to improve the lives of others. But this approach can eclipse the knowledge and talent of people who live within the communities donors seek to benefit. As a Native-led foundation, we understand that general operating support fosters a hands-off relationship with grantees, which builds trust. That trust relationship is mutually created and maintained through sustained general operating support. Trust is essential for our grantees to be empowered in their organizations and lead real social change for their communities. General operating support builds trust by allowing grantee organizations to direct resources as they see fit. Specific grantmaking requirements do not restrain the grantee’s work, nor do they have to fit their goals into a funder’s mission. Instead, the general operating support enhances the grantee’s mission and goals. Placing trust in grantees through general operating support may be going against the grain in philanthropy. Still, CPF understands our grantees can unlock their leadership potential when the most pressing needs are met.
Budget Decisions Are Taken Out of the Funder’s hands.
General operating support allows the grantee to take more ownership of their budget and, therefore, helps to reinforce a trust-based partnership with their funder. Funding directed to Native communities often comes with restrictions that limit Tribes or populations served. For the Colorado Plateau community, this conflicts with the inter-tribal nature of the area. Often, tribes and Native-led Nonprofit organizations serve their neighboring communities. By allowing the grantee to direct funding uses, a more significant impact can be achieved when the organization can apply the funds directly to their most significant needs. CPF observed the impact of our flexible funding during the COVID-19 pandemic when many of our organizations pivoted to directly serve those affected with supplies, support, and community organizing. Flexibility in funding was crucial to moving quickly and efficiently.
Simplified Grant Check-ins Can Help Grantees Move Deeper Into Their Work
General operating support grants can provide greater flexibility for a funder and grantee. Proposals are typically a general overview of an organization’s work, and grant agreements are often brief legal documents, meaning funders save time reviewing proposals and grantees can spend more time carrying out their mission rather than writing grants. Program or project grants often require a specific timeline, check-in points, reports, funding restrictions, and additional budget details. Preparing these materials can be time-consuming for smaller organizations with limited staff capacity. The information provided may be helpful in a funder’s understanding of a particular snapshot of a grantee organization. Still, it does not provide a holistic picture of a grantee’s work or needs. With more funding flexibility and deeper relationship building with funding partners, grantees can spend more time getting to the root causes of the issues they face with appropriate support.
General operating support can open new doors for both grantees and grantmakers. CPF continues to help our grantees transform their communities with general operating support investments.
CPF encourages funders and donors interested in understanding our approach to grantmaking to reach out to us at [email protected].
