Practice Test Geeks(CRP) Certified Recreation Professional Practice Test
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CRP Financial Management & Budgeting Flashcards

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

Read the first 6 CRP Financial Management & Budgeting flashcards as text

  1. Which federal grant program is the PRIMARY source of funding for outdoor recreation land acquisition and development in U.S. states?

    Answer: Land and Water Conservation Fund (LWCF)

    The Land and Water Conservation Fund (LWCF) provides federal matching grants to states for outdoor recreation land acquisition and facility development.

  2. When writing a grant proposal for a recreation program serving underserved youth, which section is MOST critical to a funder's decision?

    Answer: Statement of need supported by community data and statistics

    A compelling, data-supported statement of need demonstrates that the problem is real, significant, and that the community lacks adequate services, which is the foundation of any successful grant.

  3. A recreation agency receives a restricted grant of $50,000 for after-school programming. What does 'restricted' mean in this context?

    Answer: The funds may only be spent on the specific purpose designated by the funder

    Restricted funds are legally designated for the specific purpose defined by the funder and cannot be redirected to other agency needs.

  4. Which revenue diversification strategy reduces a recreation department's dependence on a single funding source?

    Answer: Developing a mix of tax support, user fees, grants, sponsorships, and earned revenue streams

    A diversified revenue portfolio across multiple funding streams reduces financial vulnerability when any one source is reduced or eliminated.

  5. What is the primary purpose of an indirect cost rate in a federally funded recreation grant?

    Answer: To allocate a portion of shared administrative overhead costs to the grant-funded project

    An indirect cost rate allows agencies to recover a proportional share of overhead costs (rent, utilities, HR) that support but are not directly tied to the grant project.

  6. A recreation agency is evaluating a corporate sponsorship proposal. Which due diligence step is most important before accepting the sponsorship?

    Answer: Reviewing the sponsor's values and reputation to ensure alignment with the agency's mission and community standards

    Vetting a sponsor's values and public reputation protects the agency from association with organizations whose conduct could harm community trust.