What distinguishes grant-making charities from operational charities?

• A. They have the same activities and purposes.
• B. Grant-makers focus on for-profit ventures; operational charities focus on non-profits.
• C. Grant-makers are not subject to regulation; operational charities are regulated.
• D. Grant-makers typically fund other projects; operational charities run programs and deliver services.

Answer: (D)

The core idea is about how they use their resources. Grant-making charities act mainly as funders: they raise or receive donations and then award grants to other projects or organizations. They don’t run the programs themselves; their impact comes from supporting external work, with governance focused on selecting grantees, due diligence, and monitoring results.

Operational charities, by contrast, run their own programs and deliver services directly to beneficiaries. They employ staff, manage facilities, and implement activities themselves rather than just providing financial support to others.

That’s why the correct statement is that grant-makers typically fund other projects while operational charities run programs and deliver services. The other options misrepresent the distinction: grant-makers aren’t defined by for-profit focus, both types are subject to regulation, and they don’t literally perform the same activities.