Thanks to the reader who directed us to the study reported on PNN showing that foundations are more likely to fund general operating expenses (here labeled "overhead") than is generally believed. In accounting for the widely-held belief that foundations refuse to fund such expenses, the study’s authors speculate that the year-to-year nature of foundation funding makes nonprofits reluctant to rely on them for the costs of day-to-day living.
So foundations aren’t peculiarly uncooperative on the subject of general operating support. Instead, they’re unreliable and problematic in every form of support they offer.
