CPRE Grant Writing and Alternative Funding 5 — Questions and Answers
Question 1: A park agency discovers mid-project that grant expenditures will exceed the budgeted amount in one line item. What is the FIRST action the project director should take?
- Spend from the general fund and reimburse it at project close
- Review the grant agreement for budget modification policies and contact the program officer (Correct answer)
- Reduce services to stay within the original budget without notifying the funder
- Transfer funds from the indirect cost pool without documentation
Correct answer: Review the grant agreement for budget modification policies and contact the program officer
Most grant agreements require prior approval for budget modifications; the project director should review the terms and communicate proactively with the funder before making changes.
Question 2: Which of the following is a characteristic of a 'capacity-building grant' as distinct from a program implementation grant?
- It funds direct services to program participants over multiple years
- It supports infrastructure, skills, or systems that strengthen the organization's long-term effectiveness (Correct answer)
- It exclusively covers capital construction of physical facilities
- It requires the grantee to subcontract all work to nonprofit partners
Correct answer: It supports infrastructure, skills, or systems that strengthen the organization's long-term effectiveness
Capacity-building grants invest in an organization's internal capabilities — such as staff training, technology, or planning — rather than directly funding service delivery.
Question 3: When writing grant objectives, which format best meets funder expectations for measurability?
- Broad statements of intent aligned with the agency's mission
- SMART objectives: Specific, Measurable, Achievable, Relevant, and Time-bound (Correct answer)
- General descriptions of planned activities and staff responsibilities
- Narrative explanations of the community's historical context
Correct answer: SMART objectives: Specific, Measurable, Achievable, Relevant, and Time-bound
SMART objectives give funders clear benchmarks to evaluate project success and hold grantees accountable for defined, measurable outcomes within a set timeframe.
Question 4: A recreation department is exploring tax increment financing (TIF) to fund park improvements. What is the fundamental mechanism of TIF?
- A special tax levied on businesses located within the park's service area
- Dedicating the incremental increase in property tax revenues generated by development to fund improvements in the district (Correct answer)
- Issuing revenue bonds backed by park admission fees and concession income
- A one-time assessment on new residential construction near park facilities
Correct answer: Dedicating the incremental increase in property tax revenues generated by development to fund improvements in the district
TIF captures the increase in property tax revenue that results from new development within a designated district and redirects those incremental revenues to finance public improvements.
Question 5: Which federal grant program specifically supports planning and development of trails, parks, and recreational facilities through transportation funding?
- Community Development Block Grant (CDBG)
- Transportation Alternatives Program (TAP) (Correct answer)
- Homeland Security Grant Program (HSGP)
- Rural Development Community Facilities Grant
Correct answer: Transportation Alternatives Program (TAP)
The Transportation Alternatives Program, funded through the federal highway bill, supports non-motorized transportation projects including trails, sidewalks, and recreational trails.
Question 6: A parks foundation raises $200,000 in private donations to support agency programs. Under what condition can these private funds typically be used as matching funds for a federal grant?
- Only if the foundation and the public agency share the same tax ID number
- If the funds are not already committed as match for another federal grant and meet the funder's match requirements (Correct answer)
- When the donation is restricted to capital projects, not operations
- Only after the federal grant award has been fully expended
Correct answer: If the funds are not already committed as match for another federal grant and meet the funder's match requirements
Private donations can serve as matching funds as long as they are not already obligated as match on another federally funded project and comply with the specific grant program's match rules.
Question 7: Which element of a grant budget is MOST likely to trigger funder scrutiny during the review process?
- Personnel costs with detailed position descriptions and time allocations
- Indirect costs exceeding the agency's federally negotiated indirect cost rate (Correct answer)
- Travel expenses for staff to attend a project-related conference
- Supplies and materials with unit costs and quantities listed
Correct answer: Indirect costs exceeding the agency's federally negotiated indirect cost rate
Indirect cost rates must be federally negotiated or use a de minimis rate; claiming indirect costs above the approved rate is a common compliance finding and raises red flags during review.
CPRE Grant Writing and Alternative Funding 5
A park agency discovers mid-project that grant expenditures will exceed the budgeted amount in one line item.
What is the FIRST action the project director should take?