CNC Grant Writing & Proposal Budgets 3

Question 1

What is the primary purpose of a 'needs statement' (or statement of need) in a grant proposal?

Accepted Answer

To document the problem or gap the proposed project will address using data

Answer

The needs statement uses data and evidence to establish that a significant problem exists which the proposed project will address.

Question 2

Which type of grant is typically awarded to support an organization's general operations rather than a specific project?

Accepted Answer

General operating support grant

Answer

General operating support grants provide unrestricted or broadly flexible funding for an organization's overall operations and mission.

Question 3

When a funder specifies that indirect costs cannot exceed 15% of direct costs, this is called a:

Accepted Answer

Indirect cost cap or ceiling

Answer

An indirect cost cap is a funder-imposed limit restricting the percentage of indirect costs that can be charged to the grant.

Question 4

What is a 'letter of inquiry' (LOI) in the grant seeking process?

Accepted Answer

A brief initial submission to gauge funder interest before a full proposal

Answer

A letter of inquiry is a short, preliminary document sent to a funder to determine if a full proposal invitation is appropriate.

Question 5

In a grant proposal budget, 'fringe benefits' typically include:

Accepted Answer

Employer-paid payroll taxes, health insurance, and retirement contributions

Answer

Fringe benefits are the non-wage employment costs paid by the employer on behalf of employees, such as FICA, health insurance, and retirement.

(CNC) Certified Nonprofit Consultant Practice Test