CRP CRP Financial Management & Budgeting 2

Question 1

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

Accepted Answer

Land and Water Conservation Fund (LWCF)

Answer

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

Question 2

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

Accepted Answer

Statement of need supported by community data and statistics

Answer

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.

Question 3

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

Accepted Answer

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

Answer

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

Question 4

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

Accepted Answer

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

Answer

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

Question 5

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

Accepted Answer

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

Answer

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.

(CRP) Certified Recreation Professional Practice Test

(CRP) Certified Recreation Professional Practice Test

CRP CRP Financial Management & Budgeting 2