Practice Test Geeks(CNE) Certified Nonprofit Executive Practice Test
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Grant Writing & Compliance Flashcards

7 cards from real CNE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Grant Writing & Compliance flashcards as text

  1. When a foundation RFP states 'letters of inquiry (LOI) are required before full proposals,' what is the LOI's main function?

    Answer: It serves as a brief screening tool to determine fit before inviting a full application

    An LOI is a short document that helps funders pre-screen applicants for alignment with their priorities before investing in a full review.

  2. Which financial document is most commonly required to demonstrate an organization's fiscal health in a grant application?

    Answer: Most recent audited financial statements

    Audited financial statements provide an independent verification of the nonprofit's financial position and stewardship practices.

  3. A grant application asks for 'SMART' objectives. What does the 'M' in SMART stand for?

    Answer: Measurable

    SMART objectives are Specific, Measurable, Achievable, Relevant, and Time-bound—the 'M' ensures progress can be tracked with data.

  4. Under federal grant rules, what is the 'period of performance'?

    Answer: The date range during which grant funds may be obligated and expended

    The period of performance defines the start and end dates during which federal grant funds can be legally incurred and spent.

  5. A nonprofit's grant proposal includes a project serving 500 clients but only budgets for 2 part-time staff. A reviewer raises concerns about 'organizational capacity.' What does this refer to?

    Answer: Whether the organization has the staff, systems, and expertise to execute the project successfully

    Organizational capacity encompasses staffing, infrastructure, financial systems, and prior experience needed to implement the proposed project.

  6. What is the difference between 'outputs' and 'outcomes' in grant reporting?

    Answer: Outputs are direct products of activities (e.g., people served); outcomes are changes in knowledge, behavior, or conditions

    Outputs measure the volume of services delivered, while outcomes capture the actual changes experienced by participants or communities.

  7. Which IRS form must a public charity file annually, and is often required as a grant attachment?

    Answer: Form 990

    Form 990 is the annual information return filed by tax-exempt organizations and is frequently requested by funders to verify nonprofit status and financials.