Seen in the NPQ Winter 2005 edition.

For all donors, unrestricted grants are the most positive financially and should be the rule and not the exception. This is because anything else, generally speaking, create cost for the recipient. There may be exceptions, and giving unrestricted funding does not mean that funders cannot or should not be actively involved in communicating with the recipient about plans for the funds, budget, and program strategy. However, anything but unrestricted grants genreally creates cost within the grantee’s operation.