Charities are set up to

• A. Raise money to benefit others
• B. Raise profits for owners
• C. Compete with private sector
• D. Be owned by a single individual

Answer: (A)

Charities are organized to raise money and other resources to benefit others and to fund activities that support a cause or community. Because they operate on a non-profit basis, any funds raised are used to advance their charitable work rather than paid out to owners or shareholders. There is no private owner; governance is by trustees or a board, with surplus reinvested to further the charity’s mission. While charities may interact with the private sector, their primary purpose is public benefit, not generating profits for individuals.