Grant Writing Budget and Financial Planning Questions and Answers Flashcards
6 cards from real Grant Writing practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Grant Writing Budget and Financial Planning Questions and Answers flashcards as text
What is the primary purpose of a budget narrative in a grant application?
Answer: To justify each line item by explaining why the cost is necessary and reasonable
A budget narrative explains and justifies each proposed cost, demonstrating to reviewers that expenses are necessary, reasonable, and allocable to the project.
Under 2 CFR 200 (Uniform Guidance), what is the general threshold above which an item must be classified as equipment rather than a supply?
Answer: $5,000
The Uniform Guidance defines equipment as tangible personal property with a per-unit cost of $5,000 or more and a useful life of more than one year.
When a funder requires a sustainability plan as part of the budget section, what are they primarily asking for?
Answer: A description of how project activities will continue after grant funding ends
A sustainability plan outlines the strategies and potential funding sources for continuing project activities beyond the grant period.
Which cost would typically be classified as a direct cost in a grant budget?
Answer: Salary for a project-specific research assistant
A research assistant hired specifically for the grant project is a direct cost because the expense is identifiable and allocable to that particular project.
What is the most appropriate approach when a grant RFP specifies a maximum budget of $150,000 but your realistic project costs total $175,000?
Answer: Reduce the project scope to fit within $150,000 and adjust deliverables accordingly
The correct approach is to scale the project scope and deliverables to align with the funder's stated budget ceiling while maintaining a realistic and honest budget.
In a federal grant budget, fringe benefits typically include all of the following EXCEPT which item?
Answer: Office rent for project staff
Office rent is a facilities cost categorized under indirect costs or other direct costs, not fringe benefits which cover employer-paid employee benefits.