What are "operating grants" primarily used for?

Operating grants are primarily used to cover daily operational costs of an organization or program. These types of grants provide the necessary funding to support the ongoing activities and functions of an organization, allowing it to maintain its day-to-day operations without financial strain. This can include expenses such as salaries, utilities, materials, and other routine costs associated with providing services.

In contrast, funding for long-term projects usually comes from different sources, such as capital grants or project-specific grants designed for larger, strategic initiatives that extend beyond regular operational needs. Developing new initiatives typically requires targeted funding aimed at innovation and strategic growth rather than sustaining current operations. Similarly, paying down debt would not usually fall under the category of operating grants, as these grants are not intended for financial restructuring or debt management but rather focus on supporting the immediate activities needed for an organization’s operation.