Which statement about grants is correct?

• A. Grants are funds provided by corporations only.
• B. Grants are typically loans that must be repaid.
• C. Grants are gifts that do not require any application process.
• D. Grants are donated funding from a government or private source, typically secured through a competitive application process.

Answer: (D)

Grants are funds provided by government or private sources to support a project or organization, and they are typically obtained through a competitive application process. They are awards that do not have to be repaid, unlike loans. The competition and formal application are key features that differentiate grants from other funding, and grants aren’t limited to corporations—they come from various public and private sources. This is why the description of donated funding from a government or private source secured through a competitive application process best captures what grants are.