Which of the following represents common funding streams for charities?

• A. Donations, Legacies, Grants, Government contracts
• B. Donations, Legacies, Grants, Trading income (from activities or subsidiaries)
• C. Donations, Legacies, Subsidies, Fees
• D. Donations, Grants, Sponsorships, Government bonds

Answer: (B)

The key idea is that charities typically fund their work through a mix of voluntary giving, external support for specific programs, and earned income from their activities. Donations and legacies come from supporters giving money while they’re alive or leaving bequests in their wills. Grants are funds awarded by funders such as foundations, trusts, or other organizations for particular purposes. Trading income comes from activities the charity runs (or from a trading subsidiary) and is earned income that supports ongoing work. This combination covers both donor-driven and earned revenue, helping charities diversify beyond just gifts and grants.

Government contracts can be a funding source, but they’re based on service procurement rather than fundraising, and other options like sponsorships or bonds aren’t as universally representative of the typical funding mix. So the set that includes donations, legacies, grants, and trading income best reflects common funding streams.