Question

Which of the following is a key advantage of using grants for resource mobilisation, especially for non-profit organizations?

• A. Grants require significant collateral, increasing financial risk.
• B. They do not need to be repaid, reducing financial risk.
• C. Grant funding must be repaid with high interest rates.
• D. Grants often come with strict repayment terms that strain cash flow.

Answer 1

Answer:

B. They do not need to be repaid, reducing financial risk.

• The non-repayable nature of grants is a major advantage, as it does not burden the organization with debt and its associated interest payments.