As a funder, you have important decisions to make about where your dollars can do the most good. With more needs than any one grant budget can meet, it makes sense to ask how funding will benefit the people and communities a nonprofit serves. The way we think about the costs of that work can shape which organizations and activities receive support.

One concern that comes up in discussions about general operating support is that too much of the money will go toward salaries. There’s an assumption underneath that concern that deserves a closer look: that paying staff takes money away from accomplishing the mission. For many nonprofits, staff time and expertise account for much of what it takes to deliver their services.