Grant Writing Budget and Financial Planning 2

Question 1

What does the term 'cost sharing' mean in the context of a grant budget?

Accepted Answer

The applicant contributes non-federal resources to the project

Answer

Cost sharing (or matching) means the applicant organization contributes its own resources—cash, in-kind, or third-party contributions—to supplement the federal or funder award.

Question 2

Which budget line item category typically covers salaries, wages, and fringe benefits for project staff?

Accepted Answer

Personnel costs

Answer

Personnel costs encompass all compensation paid to employees working on the project, including salaries, wages, and associated fringe benefits like health insurance and retirement.

Question 3

A grant budget narrative serves what primary purpose?

Accepted Answer

It justifies and explains each budget line item to the reviewer

Answer

A budget narrative (or budget justification) explains how each cost was calculated and why it is necessary and reasonable for the proposed project.

Question 4

When a funder specifies a 'hard cap' on indirect costs at 10%, what should an applicant do if their negotiated rate is 25%?

Accepted Answer

Limit indirect costs to 10% of the applicable direct cost base

Answer

Applicants must comply with the funder's stated cap and may only claim indirect costs up to the specified limit, even if their negotiated rate is higher.

Question 5

Which of the following is an example of an in-kind contribution that can count toward a match requirement?

Accepted Answer

Volunteer hours valued at the applicable wage rate

Answer

Volunteer time valued at the appropriate wage rate is a common form of in-kind (non-cash) match that satisfies many funders' matching requirements.

Grant Writing Practice Test

Grant Writing Practice Test

Grant Writing Budget and Financial Planning 2