CCAP CCAP Grant Writing & Fund Development 1 — Questions and Answers
Question 1: Which section of a federal grant proposal describes the specific activities, timeline, and responsible parties for achieving project goals?
- Project narrative / work plan (Correct answer)
- Budget justification
- Logic model appendix
- Organizational capacity statement
Correct answer: Project narrative / work plan
The project narrative or work plan outlines the activities, schedule, and responsible staff for each grant objective.
Question 2: A Community Action Agency is applying for CSBG discretionary funds. Which document is required to demonstrate the agency's legal nonprofit status?
- IRS 501(c)(3) determination letter (Correct answer)
- State business license
- Board meeting minutes
- Annual program report
Correct answer: IRS 501(c)(3) determination letter
The IRS 501(c)(3) determination letter is the official proof of federal tax-exempt nonprofit status required by most funders.
Question 3: In grant budgeting, 'indirect costs' refer to which of the following?
- Overhead expenses not tied to a single project, such as rent and accounting (Correct answer)
- Staff salaries directly working on the grant
- Client service supplies purchased with grant funds
- Subcontractor costs for program delivery
Correct answer: Overhead expenses not tied to a single project, such as rent and accounting
Indirect costs (overhead) cover shared organizational expenses like utilities and administration that support but are not exclusive to the grant project.
Question 4: What is a Negotiated Indirect Cost Rate Agreement (NICRA)?
- A federally approved rate that determines how much indirect cost a nonprofit may charge to federal grants (Correct answer)
- A state contract setting maximum administrative fees
- A board-approved salary schedule for grant staff
- A funder-mandated cap on program costs
Correct answer: A federally approved rate that determines how much indirect cost a nonprofit may charge to federal grants
A NICRA is negotiated between a nonprofit and its cognizant federal agency, establishing an approved indirect cost rate for federal awards.
Question 5: Which grant writing best practice most directly increases the likelihood of a proposal being funded?
- Aligning the project goals explicitly with the funder's stated priorities (Correct answer)
- Submitting as early as possible before the deadline
- Including as many program activities as possible
- Requesting the maximum allowable grant amount
Correct answer: Aligning the project goals explicitly with the funder's stated priorities
Funders award grants to proposals that clearly address their specific priorities and outcomes, making alignment the most critical success factor.
Question 6: A CCAP professional conducting a fund development assessment should review which metric first to gauge grant sustainability?
- Revenue diversification ratio across multiple funding streams (Correct answer)
- Number of grants submitted in the previous fiscal year
- Total client count served with grant funds
- Staff-to-client ratio for grant-funded programs
Correct answer: Revenue diversification ratio across multiple funding streams
Revenue diversification measures reliance on any single funder, which is the primary indicator of financial sustainability risk.
CCAP CCAP Grant Writing & Fund Development 1
Which section of a federal grant proposal describes the specific activities, timeline, and responsible parties for achieving project goals?