CNE Grant Writing & Compliance 2 — Questions and Answers
Question 1: A funder requires a 'logic model' as part of the grant application. What does this document primarily illustrate?
- The organization's annual budget breakdown
- The relationship between program inputs, activities, outputs, and outcomes (Correct answer)
- A timeline of past grant awards received
- The board of directors' qualifications
Correct answer: The relationship between program inputs, activities, outputs, and outcomes
A logic model visually maps how program resources and activities lead to intended outputs and longer-term outcomes.
Question 2: Under OMB Uniform Guidance (2 CFR Part 200), what is the threshold for requiring a single audit of a federal grant recipient?
- $500,000 in federal expenditures per year
- $750,000 in federal expenditures per year (Correct answer)
- $1,000,000 in federal expenditures per year
- $250,000 in federal expenditures per year
Correct answer: $750,000 in federal expenditures per year
Organizations that expend $750,000 or more in federal awards during a fiscal year must undergo a single audit under 2 CFR Part 200.
Question 3: What is the primary purpose of a grant 'needs statement' or 'problem statement'?
- To list all potential funders for the project
- To document the organization's financial stability
- To establish the urgency and scope of the problem the project will address (Correct answer)
- To outline the grant writer's professional credentials
Correct answer: To establish the urgency and scope of the problem the project will address
The needs statement demonstrates with evidence that a significant problem exists and that the organization is positioned to address it.
Question 4: A nonprofit receives a federal grant with a 'cost sharing' requirement. What does this mean?
- The grant will be shared equally among multiple nonprofits
- The nonprofit must contribute a portion of project costs from non-federal sources (Correct answer)
- Costs must be shared across multiple budget periods
- The funder will split administrative costs with the grantee
Correct answer: The nonprofit must contribute a portion of project costs from non-federal sources
Cost sharing (or matching) requires the grantee to contribute non-federal funds toward the project, demonstrating investment and leverage.
Question 5: Which section of a grant proposal typically describes how the program will be sustained after the grant period ends?
- Evaluation plan
- Organizational capacity
- Sustainability plan (Correct answer)
- Program narrative
Correct answer: Sustainability plan
The sustainability plan explains how the nonprofit will continue funding and operating the program beyond the grant term.
Question 6: A grantee wants to reallocate 15% of a federal grant budget from personnel to equipment. What must they typically do first?
- Spend the funds immediately before notifying the funder
- Request prior approval from the federal awarding agency (Correct answer)
- Notify the board of directors only
- Wait until the grant period ends to reconcile
Correct answer: Request prior approval from the federal awarding agency
Significant budget modifications—typically over 10%—on federal grants require prior approval from the awarding agency under Uniform Guidance.
Question 7: What is 'indirect cost rate' in the context of federal grants?
- The percentage of unspent funds returned to the funder
- A predetermined percentage applied to direct costs to recover overhead expenses (Correct answer)
- The interest rate charged on unspent grant funds
- The cost of indirect program services provided to beneficiaries
Correct answer: A predetermined percentage applied to direct costs to recover overhead expenses
An indirect cost rate (or F&A rate) allows nonprofits to recover a share of administrative overhead costs not directly attributable to a single project.
CNE Grant Writing & Compliance 2
A funder requires a 'logic model' as part of the grant application.
What does this document primarily illustrate?