Unrestricted grants for nonprofits: Flexible funding guide

Unlike restricted grants, which come with conditions on how the money must be spent, unrestricted funding gives organizations room to breathe, plan, and grow. It’s a signal of trust from funders—and a powerful way to build long-term sustainability.

What is an unrestricted grant and why does it matter?

Unrestricted grants are funds you can use however your nonprofit sees fit. That means you're not locked into spending them on a certain program or timeline. You can put the money toward rent, staff salaries, operations, or even that tech upgrade you've been putting off. It’s all about giving your organization breathing room to grow and respond to what matters most—without needing to ask for permission every time.

In contrast, restricted grants come with strings attached. They’re tied to specific projects or goals, and while they’re helpful, they often limit how creative or flexible you can be. With unrestricted funding, the trust is placed in your hands. Funders are saying, “We believe in your mission. Use this how you need to.” That kind of trust builds confidence and gives you space to plan long-term instead of always putting out fires.

From our experience working with nonprofits, we’ve seen how powerful that freedom can be. Unrestricted grants let leaders lead and let missions thrive.

How unrestricted grants support nonprofit organizations’ long-term growth

When you’re not tied to specific spending rules, you can finally start thinking beyond just “getting by.” That’s the magic of unrestricted grants. They give you room to plan ahead, build smarter systems, and invest in what will keep your nonprofit strong for years—not just months.

These grants help cover the real (and sometimes boring) stuff that keeps everything running—like salaries, rent, software, and training. But it’s that stuff that keeps your programs moving, your team supported, and your impact growing.

Unrestricted funding also gives you the chance to try new things. Want to pilot a new service? Expand to a new location? Test out a fundraising idea? This kind of support makes that possible without the fear of breaking budget rules.

We’ve seen how nonprofits shift from survival mode to growth mode when they have the flexibility to make their own calls. It’s not just about more money—it’s about smarter, stronger organizations that are ready for anything.

Where to find unrestricted grants for nonprofits

Finding unrestricted grants can take some digging, but they’re out there—and they’re worth the hunt. Many foundations, corporate programs, and even local governments are starting to recognize how powerful general operating support can be.

Start with foundations known for supporting grassroots organizations or long-term impact. These groups often trust nonprofits to decide how best to use funds. Community foundations and donor-advised funds are also great places to look. They tend to care deeply about local change and often offer grants with fewer strings attached.

Don’t skip corporate giving programs, either. Many companies offer grants to nonprofits working in areas they care about, and some will even match employee donations with unrestricted support. Bonus points if your mission aligns with their values.

There are also tools to help you search smarter. Sites like Candid, Instrumentl, and GrantStation let you filter for general operating support or unrestricted funding. They save you time and help you focus on the funders who already believe in flexible support.

At Harness, we always encourage partners to think of this like matchmaking. The right funders are out there—you just need to find the ones who believe in your mission and your way of doing things.

How to apply for unrestricted grant funding

Applying for unrestricted grants is a little different from project-based grants. Since you're not pitching a specific program, you’re really pitching your whole organization. That means the focus shifts to your mission, your impact, and why funders should trust you to use the money where it’s needed most.

Start by showing them who you are. What change are you making in your community? Why does your work matter? Then back it up with results—stories, data, and real-world examples that prove you’re making a difference.

Make sure your application is honest and clear. If you need help keeping the lights on, say that. If you’re investing in your team to grow your reach, explain why that matters. Funders appreciate transparency and want to know their money will have a meaningful, lasting impact.

And remember: funders are people, too. Building relationships goes a long way. A quick check-in email, a thank-you note, or an update on how their support helped can make all the difference when it’s time to apply again.

We’ve seen time and time again that the strongest applications are the ones that feel real. Tell your story well, and the right funders will get it.

Top unrestricted grant programs in the United States

If you're looking for unrestricted grants, it helps to start with funders who are known for giving this kind of support. These organizations understand that nonprofits need flexibility to grow and succeed—and they’re putting real dollars behind that belief.

Here are a few well-known programs to check out:

• Ford Foundation – Offers general operating support to organizations fighting inequality and promoting justice around the world.
• The Patrick J. McGovern Foundation – Supports nonprofits using tech for social impact, often through unrestricted funding.
• The Clowes Fund – Focuses on education, workforce development, and immigrant services, with some unrestricted options.
• Skees Family Foundation – Offers multi-year, general operating support to grassroots organizations tackling poverty and inequality.
• Global Fund for Children – Invests in small, locally-led groups with flexible funding to let them grow at their own pace.
• Life Science Cares – A newer funder offering both project-based and general support for nonprofits tackling poverty.
• Blue Meridian Partners – Funds big-picture, scalable solutions with flexible investments designed for long-term impact.
• The Path Foundation – Offers grants to community-focused nonprofits in Virginia, including general operating support.

Each funder has its own mission and priorities, so it’s worth doing a little research before applying. But if your values align, these can be powerful partners for long-term, unrestricted support.

How to manage and report on unrestricted funds effectively

Getting an unrestricted grant is a big win—but how you manage it matters just as much. Funders may give you freedom, but they still want to know their support is making a difference.

Start by setting up simple systems to track how you're using the funds. This doesn’t have to be fancy. A spreadsheet or basic accounting software can do the trick. Just make sure you can show how the money helped you move your mission forward—whether it went toward salaries, rent, or launching a new program.

Next, keep your funders in the loop. Send updates, even if they don’t ask for them. Share wins, challenges, and stories that highlight your impact. This builds trust and shows that their support is helping in real, meaningful ways.

We’ve worked with nonprofits who use unrestricted funding to invest in infrastructure—things like new software, better training, or stronger systems. These investments don’t always make headlines, but they help organizations grow smarter and stronger over time.

Bottom line? When you’re thoughtful about how you use flexible funds—and open about the results—you build long-lasting relationships with funders who want to keep supporting your work.

Tech-forward solutions for managing grant programs and fundraising

Managing grant funding—especially when it comes from different sources—can get overwhelming fast. That’s where the right tools can make all the difference. With the help of smart, easy-to-use tech, nonprofits can save time, stay organized, and raise more money without burning out their team.

Platforms like Harness bring everything together in one place. You can track donor activity, set up recurring giving, automate thank-you messages, and even manage personalized fundraising websites—all without needing a full-time tech person. That means less time in spreadsheets and more time building relationships with your supporters.

Unrestricted grants give you room to breathe. The right tech helps you use that breathing room wisely. Whether you’re managing a community grant or launching your next campaign, tools like Harness help you work smarter—not harder.

And here’s the best part: when you can clearly show how your donors’ support is making an impact, it builds trust and encourages even more giving. That’s how you grow a stronger, more sustainable organization—one donation, one update, one connection at a time.

Let’s keep this going

Unrestricted grants don’t just help nonprofits survive—they help them grow, adapt, and thrive. When you're trusted to decide how best to use your funding, you can make smarter moves, support your team, and plan for the future without jumping through hoops.

More and more funders are starting to see the value of flexible support. And for good reason—it works. We’ve seen it firsthand with the organizations we partner with. When the pressure to chase every dollar eases up, there’s room for real innovation, deeper community impact, and stronger leadership.

If you're ready to take control of your fundraising and build long-term sustainability, we're here to help. At Harness, we combine hands-on support and strategy with online tools to help you raise more and keep your donors engaged—month after month.

Frequently asked questions

What is the difference between restricted and unrestricted grants?

Restricted grants must be used for a specific purpose, like a project or event. Unrestricted grants can be used for anything your nonprofit needs—like salaries, rent, or day-to-day operations.

Who offers unrestricted grants for nonprofits?

Many private foundations, community-based funders, and some corporate giving programs offer unrestricted grants. A few examples include the Ford Foundation, Blue Meridian Partners, and the Skees Family Foundation.

How can I apply for an unrestricted grant?

Focus on telling your organization’s full story—your mission, impact, and goals. Be honest about where you need support, and make sure your values align with the funder’s. Keep your application clear, direct, and rooted in real outcomes.

Are unrestricted grants harder to get?

They can be. Because they offer more freedom, funders usually want to see strong leadership, proven results, and clear communication. But if you’ve built trust and shown impact, you’re in a great spot.

How do I report on how we used unrestricted funds?

Even though the money isn’t tied to one program, funders still want to know it made a difference. Share updates, results, and stories that show how the funding helped you grow or support your community.