How to Win Unrestricted Grants for Your Nonprofit

Unrestricted grants are given to grantees without specific limitations on how the funds should be used. Because of their flexibility, they’re sought after by many nonprofits. 

They provide a promising avenue for financial support. We’ll show you how to find and win them.

In this guide, we’ll cover the following:

• A rundown on how unrestricted grants work
• The differences between restricted and unrestricted grants
• How to efficiently find and win unrestricted grants 

Let’s dive in.

Unrestricted grants are financial contributions awarded to nonprofit organizations without a designated purpose. 

The awarded nonprofit can direct the funds toward whatever program, project, or operating expense they decide needs it the most. 

In this way, they have complete autonomy.

Because you have total freedom in how you use unrestricted funds, there are a lot of ways to put them to use.

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Arnisha T Johnson, CEO and Lead Grant Writer at Manifesting On More shares a cautionary word of advice when talking to nonprofits about unrestricted funding. 

"Note that unrestricted funding means you can use the award for anything. Even though this award is unrestricted, remember to create a budget and make smart purchases that are relevant to the impact of your target audience."

Arnisha encourages nonprofit organizations to still use their discretion when using their funds. “If you manage it well, when the funder looks at how those funds were distributed and utilized, it grants you a higher chance to qualify for more funding (should that opportunity be presented).”

Pro Tip: When deciding on where to direct unrestricted funding, prioritize the areas of your nonprofit that are either in dire need of funding or are chronically underfunded. More restrictive funding may not support these initiatives, whether programs, projects, or operating expenses.

The main differences between these types of funding are their purpose, use, and accountability.

We unpack the differences of restricted and unrestricted funding in a more in depth article.

Okay, now you're pumped up about unrestricted grants. How do you win one for your nonprofit? 

The best way to find all the relevant unrestricted grants is to use Instrumentl. 

Pro tip: Create a free Instrumentl account and get access to Instrumentl grant search features for 14 days.

Let’s unpack the most effective way to find unrestricted grants.

After you’re in Instrumentl, you can start your grant search by first creating a “Project.” Projects are like a saved search. You enter details about your nonprofit and the types of grants you’re looking for, and then Instrumentl will match you with relevant grants.

Instrumentl’s database contains over 420,000 funders. When you search for grants on Instrumentl, you’re narrowing down the billions of dollars available to only the best opportunities for you, in this case, unrestricted grants.

Include Details About Your Nonprofit

Here’s how you can set up your first project:

You’ll have three steps to complete before seeing relevant unrestricted grants:

1. Share details on where you’re located
2. Create a project name
3. Set up your grant search

First, select the geography in which your nonprofit operates. This will help match you with grants that are relevant to your area.

Once done, click “Save and Continue”. 

Next, in the “Overview” tab, create a project name. If you make multiple projects, creating a project name related to your program or client will make it easy to identify them. 

In this example, we’ll create a “Project Name,” called, “Unrestricted Grants for Food Security.”

Select, “Matches & Tracking” so that Instrumentl will match you with relevant grants that fit your criteria. Tracking only projects is best used if you already have grants and you just want to track them within Instrumentl.

Once done, click “Save and Continue”. 

Narrow Your Grant Search To The Area You Serve

In the last step before you can see your grants, you’ll need to set up your matches. 

In this step, you’ll clarify the types of grants you want to see. 

Here’s what to do:

Start by selecting your nonprofit type; in this case, we’re applying for grants for our fictitious food security nonprofit.

We’re also not a faith-based organization, so we’ll select “No” when it asks us if we’d like to “specifically for faith-based” grants.

We’ll then select our location.

In our example, let’s say we operate out of Michigan, specifically the counties surrounding Detroit. Simply search your state, and then select the counties relevant to you.

Narrow Your Grant Search To Your Field Of Work

Now, select the field of work you operate in. This will ensure you get matched with unrestricted grants from funders who support nonprofits that do the work you do.

It’s best practice to select 2-3 fields of work so you have a wide enough scope for relevant grants. 

When clicking, “+ Select Field of Work,” search for the cause you support, in this case food security, and select 2-3 keywords from the drop-down that fit your mission.

Specify The Size Of Grants You Want

Next, set a minimum or maximum type of grant you’d like to be matched with. This will filter out grants that are either too small, making them not worth pursuing, or too large, making them too competitive.

In our example, I’ll set my minimum to $1,000 and no maximum. I’ll take all the funding I can get!

Additionally, when asked, “What will you use the funds for?” make sure to click “General Operating Expense.” 

This will make sure you’re matched with grants that are more flexible. General support is a subset of unrestricted grants and will filter out restrictive grants that only support specific projects or programs. 

Finally, click “Save and Exit,” to start seeing the grants you’re getting matched with.

Instrumentl has now narrowed down all the potential grants you could pursue to those in your area, that support your cause, and are offering general operating support that’s unrestricted.

Let’s dig into these grants to see if we’re competitive.

Review Your Unrestricted Grants

Instrumentl’s grant matches resemble an email inbox. The matches are on the left, and when you click on one, the details will show on the right. 

The left side shows all your matches:

• “Funding Opportunity Matches” are individual active grants.
• “Funder Matches” are funders who match your search criteria. 

The right side of the screen expands the details of the grants you clicked on the left. Under, “FUNDING OPPORTUNITY,” you will see the details of the grant, such as the amount, the funder’s website, their application period, and much more. 

Beside it, click on “FUNDER 990 REPORT” to view visualized data from their 990 reports.

This window will quickly break down key details about the funder and their history. Reviewing a funder within Instrumentl saves you so much time, rather than comparing dozens of 990 reports for only a single funder. 

Filter For The Most Relevant Grants

The screenshot below shows the top 3 matched grants for my food security search.

Because I have almost 50 grants to review, it may be faster for me to narrow down my search further. I can do so using the filters at the top.

You can filter your grants by:

• The field of work, 
• location, 
• past giving history, or 
• the type of funder they are.

You can also use the “Search” function to narrow down your search even further, highlighting grants with “unrestricted” mentioned in them.

Searching for the word, “unrestricted” in my list of grants revealed the Lawrence Foundation Grant. 

Uncover Key Funder Insights

Once you start finding relevant grants, click into them to review their details. 

In our example, I learned that the Lawrence Foundation Grant offers unrestricted grants to environment and community service nonprofits.

In this case, the Lawrence Foundation may not be the perfect match for me. I was loosely matched with the grant because the field of work they support, “Community Services,” was related to the food access categories I selected when choosing my “Field of Work.”

Although this grant may not be a match made in heaven, unrestricted grants are inherently more flexible. So let’s dig in further and see if they’re worth pursuing and sending them a Letter of Intent.

For starters, look at the overview of the grant to gather helpful information on if you’re eligible to apply. In this case, I learned that all their grants are unrestricted. And that they range from $5-$10,000.  

By clicking on the “FUNDER 990 REPORT” tab, I can review their historical 990 filings. Instrumentl summarizes the details in an easy-to-digest format so that you can see:

• An overview of their finances (assets, total giving, average amount)
• Links to 990 reports
• Contact details (EIN number, phone, websites, address)
• Key people (directors, board members)
• Key financial stats over time (total giving, average and median amount)
• Past grantees
• Their openness to new grantees
• And the causes they support

When analyzing the Lawrence Foundation, you can see that their average grant size is about $5,000. This is important to know. If I choose to apply, I should ask for this amount. 

Additionally, when looking at their “Openness To New Grantees,” I can see that they gave out grants to more new organizations that repeat nonprofits. This is encouraging for me since my organization never applied for a grant from this funder.

Finally, I know they give to mostly environmental organizations. But they give a lot to “Human Services” as well.

Perhaps my nonprofit that focuses on food access fits within that field of work. If so, I could be competitive for a $5,000 grant from them.

When selecting “+ Human Services,” I can see that “Gift Distribution” and “Children & Youth Services” received grants of $5,000.

My nonprofit could fit within that category. Although it may not be a perfect fit. I should discuss with my team whether we should pursue this grant.

I will repeat the above steps, digging into and reviewing the relevant grant opportunities Instrumentl matched me with. 

When I have a list of relevant grants, I’ll start working with my team to send out LOIs and grant proposals. 

To craft a compelling grant application, review the core components of good proposals. Doing so will help you nail down exactly what you need to do to win funding.

When Pamela Grow, founder of Basics & More Fundraising, reflected on her experience pursuing unrestricted support, she offered three points of advice. 

“I was always able to create a solid core of general operating support grant funding by:

1. Focusing on small to mid-sized family foundations that funded general operating support.
2. Consistent research (you'd be surprised by all the foundations you don't know about).
3. Having a SOLID case for support. Despite the fact that most of my career was spent in Philadelphia, I only applied once for a Pew grant, and that was by invitation. It goes without saying that the Pew program-specific grant was a massive headache in terms of reporting. I would have preferred to have gotten the $175k through several general operating support grants. 

You have to make the decision that every grant opportunity ISN'T for you and quit wasting your time. Maybe if fewer nonprofits applied for some of these ridiculously restricted grants, foundations might start funding general operating support.”

Is General Operating Support The Same As Unrestricted Grants?

Unrestricted funding and general operating funding are related, but they are not exactly the same.

• General operating support is a subset of unrestricted funding and is designated for day-to-day operational expenses. 

• Unrestricted funds can also be used for other purposes, not just general operations.

In short, general operating funding is a subset of unrestricted funding that is explicitly used for ongoing operational expenses.

Why Are Unrestricted Grants Important for Nonprofits?

Unrestricted grants allow nonprofits to allocate funds where needed most, acting as a financial safety net for unexpected challenges such as increased service demands, natural disasters, or health crises. 

They also support essential operational expenses like staff salaries and rent. This dispels the misconception that all funds must go directly to services. Finally, unrestricted grants provide the stability needed to sustain ongoing projects and initiatives.

Pros and Cons of Unrestricted Grants for Nonprofits

Unrestricted grants offer advantages and disadvantages for nonprofits. 

Pros:

• Nonprofits have autonomy in fund allocation.
• Fewer reporting and administrative requirements, enhancing efficiency.
• Enables experimentation with new programs aligned with the mission.

Cons:

• Concerns about accountability due to unspecified fund use.
• Intense competition for these grants necessitates compelling proposals.
• Requires robust financial oversight to prevent misuse of funds.

Unrestricted grants can be the catalyst for your nonprofit's sustainability and impact, enabling you to make a lasting difference in your community. 

Throughout this article, we explored unrestricted grants, their significance, and how to navigate the grant-seeking process effectively. 

Now go out there and secure those unrestricted grants to supercharge your nonprofit's mission!

To continue learning, check out our guide to program grants and how to find them to support specific initiatives you want to run.

If you're ready to take your grant search to the next level and find good-fit funders faster, start a 14-day free trial with Instrumentl. Instrumentl is the grant management platform that unifies grant prospecting, tracking, and award management.