FREE Grant Writing Budget and Financial Planning Questions and Answers

Question 1

An organization is preparing a budget for a federal grant and plans to use the de minimis indirect cost rate.
According to 2 CFR 200, what is the standard de minimis rate and to what cost base is it applied?

Accepted Answer

10% of Modified Total Direct Costs (MTDC).

Answer

15% of the total grant amount requested.

Answer

10% of total direct and indirect costs.

Answer

15% of personnel salaries and fringe benefits only.

Question 2

A grant proposal budget includes a line item for 'Personnel' totaling $50,000. What is the primary function of the corresponding section in the budget justification narrative?

Accepted Answer

To provide a detailed calculation showing each person's role, level of effort (e.g., % FTE), and salary breakdown.

Answer

To list the names and contact information for all project staff.

Answer

To attach the official HR job descriptions for each position.

Answer

To confirm that all personnel have passed a background check.

Question 3

A local business has agreed to provide free printing services, valued at $2,000, for a nonprofit's new community program. In the grant proposal budget, how should this contribution be categorized?

Accepted Answer

As an in-kind contribution.

Answer

As a cash match from a corporate partner.

Answer

As program income.

Answer

As a reduction to the project's direct costs.

Question 4

A university submits a budget for a federal grant that includes a line item for 'Lobbying expenses to advocate for future program funding.' According to the cost principles in 2 CFR 200 (Uniform Guidance), how would this cost MOST likely be treated?

Accepted Answer

Unallowable, as lobbying costs are generally prohibited.

Answer

Allowable, because it ensures project sustainability.

Answer

Reasonable, if the amount is not excessive.

Answer

Allocable, as it directly relates to the project's future.

Question 5

A funder requires a 1:1 match for their $50,000 grant award. Which of the following scenarios fulfills this requirement?

Accepted Answer

The organization secures $25,000 in cash and documents $25,000 in volunteer time.

Answer

The organization budgets to use $50,000 from another federal grant.

Answer

The organization shows that the total project cost is $50,000.

Answer

The organization promises to raise $50,000 after the grant is awarded.

Question 6

In a grant proposal, which of the following BEST demonstrates a project's long-term financial sustainability?

Accepted Answer

A narrative describing a diversified funding plan that includes earned income, individual donor cultivation, and other grants being sought.

Answer

A budget that is fully spent down to a zero balance at the end of the grant period.

Answer

A detailed list of the one-time equipment needed to start the project.

Answer

A letter of support from a board member promising to help fundraise.

An organization is preparing a budget for a federal grant and plans to use the de minimis indirect cost rate.According to 2 CFR 200, what is the standard de minimis rate and to what cost base is it applied?

An organization is preparing a budget for a federal grant and plans to use the de minimis indirect cost rate.
According to 2 CFR 200, what is the standard de minimis rate and to what cost base is it applied?