Why Supporting General Operations Is The Most Powerful Way to Create Lasting Impact
When people think about donating to a nonprofit, they often picture funding a specific program or service. While program support is important, research consistently shows that general operating support (sometimes called unrestricted giving) is one of the most effective ways to strengthen nonprofit work and maximize long-term impact.
For nonprofits in Colorado and beyond, including organizations like Union Hall, general operating funds provide the flexibility needed to keep missions moving forward, respond to community needs, and build sustainable futures. Here’s why giving to general operations matters so much.
1. Programs Depend on Strong Operations
Every successful program depends on a strong operational foundation. General operating funds cover the essential, behind-the-scenes costs that make mission-driven work possible, including staff salaries and benefits, rent and utilities, insurance, technology, accounting, and governance.
Without these core supports, even the most innovative programs cannot function effectively. According to research from Grantmakers for Effective Organizations (GEO), nonprofits with strong operating support are better equipped to deliver consistent, high-quality programs because they can maintain the core functions that sustain mission-driven work.
2. Flexibility Allows Nonprofits to Meet Real Needs
Colorado’s arts community is dynamic, and so are the needs and challenges nonprofits are called to address. Unrestricted funding allows organizations to respond quickly to emerging needs, unexpected challenges, or new opportunities aligned with their mission.
Research from Exponent Philanthropy highlights that flexible funding enables nonprofits to shift resources where they will have the greatest impact, rather than being locked into narrowly defined budgets that may no longer reflect reality. While project-restricted funding plays an important role, it often comes with limitations that can prevent organizations from adapting in real time.
3. General Operating Support Builds Long-Term Impact
One of the strongest findings across philanthropic research is that general operating support strengthens nonprofits over time, not just in the short term. The William T. Grant Foundation and GEO note that unrestricted funding helps organizations retain experienced staff, invest in systems and leadership development, and engage in long-term strategic planning rather than operating in a cycle of short-term grants.
Strong operations mean programs are delivered more efficiently, leadership remains stable, and organizations are better equipped to weather economic uncertainty. These investments may not always be visible to donors, but they significantly increase an organization’s ability to deliver meaningful, lasting outcomes.
4. Unrestricted Giving Is a Vote of Trust
When a donor gives to general operations, they are expressing confidence in an organization’s leadership and vision.
Trust-based philanthropy research emphasizes that nonprofits are most effective when leaders are empowered to make decisions based on real-time knowledge of their communities. Exponent Philanthropy notes that flexible funding strengthens relationships between donors and organizations and leads to healthier, more resilient nonprofits.
That trust enables nonprofit leaders to steward resources responsibly for the entire organization, not just individual programs.
5. General Support Can Unlock Additional Funding
Strong general operating support improves an organization’s overall financial health, which can make it more competitive for foundation grants, major gifts, and partnerships. Unrestricted funds are often used as matching dollars, helping nonprofits leverage additional investments.
According to GEO, organizations with stable operating funding are more attractive to institutional funders because they demonstrate sustainability, sound management, and strategic clarity. In this way, unrestricted gifts often multiply their impact far beyond the original donation.
Information in this blog was inspired by teaching from Paddy Johnson, Coach for Visual Artists.
Why It Matters for Union Hall
For donors, especially those new to philanthropy, general operating support is one of the most effective ways to give. At Union Hall, general operating support ensures that we can continue serving the community in our central Denver location, supporting emerging creatives, and adapting to what’s needed most. While our programs may change lives, operations make those programs possible.
Giving to general operations is a meaningful and responsible choice. We are committed to transparency and stewardship, sharing how funds are used through annual impact reports and monthly newsletter updates. Your support helps sustain the people, systems, and spaces that make our work possible, and we believe you deserve to see the impact of your generosity.
An unrestricted gift or corporate sponsorship to Union Hall’s general operating fund provides the flexibility and stability needed to create lasting impact, now and for years to come.
Make a donation in any amount by visiting ColoradoGives.org/UnionHallDenver.
Cash and check donations can be made in person at the gallery; plan your visit.
To inquire about corporate sponsorship, email info@unionhalldenver.org.