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What Does ‘Core Operating Support’ Mean?

Core operating support (also known as “unrestricted funding”) helps underwrite the day-to-day administrative, infrastructure and overhead costs that enable an organization to carry out its mission. Core operating support from TCWF can also be used to sustain a specific, ongoing health program within an organization, or to maintain existing health services.

Examples of core operating support include:

• providing salaries for key administrative staff;
• covering operating expenses (rent, phone, office supplies);
• supporting strategic planning, and staff and board development;
• sustaining an ongoing disease prevention program; and
• maintaining existing services of a community health clinic.

Virtually all legitimate, ongoing work of nonprofit organizations working to improve the health of underserved communities in California is eligible for core operating support from the Foundation—except direct funding for project or program support.

Examples of projects that are not eligible for core operating support include:

• development of a new program (such as a new health care, health promotion or disease prevention effort);
• expansion of an existing project or program; or
• staff salaries for a new project or program.

Why Does The Foundation Provide Core Operating Support?

Since our founding in 1992, we have been known for our project-driven initiatives. But in recent years we have come to realize that the valuable work accomplished by nonprofit organizations is rooted in the ability to meet basic organizational needs. Accordingly, in 2001 our board of directors decided to emphasize core operating support.

Here are a few examples of the many ways core operating support from TCWF has helped our grantee organizations increase their effectiveness:

Rural clinic increases patient visits
Core operating support can create a new synergy by funding a key staff position.

Salud Para La Gente, a small clinic in rural Watsonville, California, has used its core operating grant to pay for a physician, who increased the clinic’s patient visits. Revenue from these services was sufficient to keep the position funded after the grant ended—a win for the clinic, its patients and the Foundation.

Expanding health care services organization develops a business plan
Core operating support can help make an organization stronger by supporting strategic planning.

Delta Health Care and Management Services Corporation delivers a broad range of services to low-income and high-risk residents of San Joaquin County. A period of rapid growth had resulted in constant pressure to raise funds, but the organization lacked a clear sense of direction.

A two-year core operating support grant from TCWF enabled Delta to develop a three-year business plan. The process of creating this document helped the agency develop a stronger sense of its capabilities and future direction.

Free health clinic looks to a more secure future
Core operating support for clinics is intended to sustain existing services.

The Women’s Community Clinic (WCC) is a free health clinic in San Francisco that provides high-quality, culturally sensitive care to anyone who needs it. A two-year grant from TCWF has helped sustain and stabilize the clinic as it seeks to meet increasing demand for its services.