Flexible, Reliable Funding
Flexible and reliable funding refers to grantmaking practices such as general operating support, multiyear grants and funds that cover indirect costs. These resources are crucial to providing nonprofits with the tools they need to be effective in their work, ensuring they can nimbly respond to changes in their communities, make real progress on the issues they seek to address and strengthen their organizations so that the work is sustainable.
GEO has tracked multiyear and general operating support funding given by grantmakers since the first field study in 2008 and after levels remained stagnant through 2017, it is encouraging to see an increase in both in 2025. Figure 11 shows 87 percent of grantmakers reported they provide multiyear funding compared to 79 percent in 2014 and 2017. Figure 12 demonstrates the median percentage of grantmaking budget given as general operating support rose to 38 percent after hovering around 20 percent for nearly two decades.
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These trends demonstrate a growing shift toward more flexible funding practices, though there is still room to strengthen support for nonprofits and communities. It is heartening to see significant growth in median general operating support after over a decade of stagnation, with 77 percent of grantmakers now offering at least some general operating support, as shown in Figure 13. Given that multiyear general operating support is the best tool to provide nonprofits with the flexibility they need to facilitate change, grantmakers must continue to strive to make this practice the standard across the sector.
Endowment Payout Rate
To better support nonprofit stability amidst growing volatility, recent conversations across the sector have called on foundations to raise their payout rate to higher than the legally-required minimum of five percent, with some notable foundations stepping up to make increases.7 However, despite the widespread belief that most foundations only spend the five percent minimum, GEO’s research, consistent with other recent studies on payout, shows that more than half of surveyed organizations are already spending over the five percent threshold. Sixty-four percent of grantmakers participating in the study indicated they have an endowment. Of those with an endowment, Figure 14 illustrates 43 percent report spending between 5 to 7 percent, and another 12 percent spending more than 7 percent of their endowment annually. Foundations who seek to meet the moments of crisis or opportunity by increasing payout need to understand that 5 percent is the floor, but it is not the norm, with most grantmakers already giving more.
We want to provide grants in the form that is most helpful to our grantee partners.”
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The Robert Wood Johnson Foundation
The Robert Wood Johnson Foundation (RWJF) has made deliberate operational and cultural shifts toward a more trust-based, flexible and reliable funding strategy.
Multiyear grants now make up the majority of their portfolio, with a median duration of two years and a goal of three. General operating support increased from 0.3% of grantmaking in 2016 to 21% in 2025. "We want to provide grants in the form that is most helpful to our grantee partners. Sometimes that’s a combination of general operating support and project support,” said Michelle Larkin, Vice President, Program Management.
During the COVID-19 pandemic, RWJF converted many project grants to general operating support and paused narrative reporting requirements, signaling trust and responsiveness.
Flexible, sustained funding does more than keep the lights on — it fuels resilience, creativity and justice across the South.”
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New Disabled South
New Disabled South — Flexible Funding Fuels Disability Justice
New Disabled South, serving 14 states, works to improve the lives of disabled people and fights for disability justice across the South.
With multiyear, general operating support, the organization was able to spark innovation, foster sustainability and invest in its greatest strength — its people. Flexible support enabled the organization to pay disabled staff and organizers a fair, living wage; strengthen infrastructure; and plan long term. “The multiyear nature of the grant gave us stability, which is often rare in disability-led organizations, and the ability to plan for the long-term rather than being stuck in short-term, survival mode cycles,” said Amanda Miles, Chief Development Officer. “Flexible, sustained funding does more than keep the lights on — it fuels resilience, creativity and justice across the South.”
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7The Chronicle of Philanthropy, “Tonya Allen, Deepak Bhargava, and John Palfrey: United in Their Determination to Give According to Their Values,” July 8, 2025. Available at https://www.philanthropy.com/article/foundation-leaders/.