Grant Writing Grant Budget Formulation 2

Question 1

What is 'cost sharing' in a federal grant budget?

Accepted Answer

The grantee contributes resources beyond the grant award toward project costs

Answer

Cost sharing (also called matching) means the grantee commits its own funds or in-kind resources to complement the federal award.

Question 2

Which budget category typically includes salaries AND fringe benefits for project staff?

Accepted Answer

Personnel

Answer

The Personnel category covers wages, salaries, and associated fringe benefits for employees working on the grant.

Question 3

A grant requires 25% match on a $200,000 award. What is the minimum matching amount?

Accepted Answer

$50,000

Answer

25% of $200,000 = $50,000 that the grantee must contribute from non-federal sources.

Question 4

What does 'unallowable cost' mean in grant budgeting?

Accepted Answer

A cost the funder prohibits from being charged to the grant

Answer

Unallowable costs are explicitly prohibited by the funding agency's regulations or program guidelines and cannot be charged to the award.

Question 5

Which OMB circular (now part of 2 CFR 200) governs cost principles for nonprofit organizations receiving federal grants?

Accepted Answer

OMB A-122

Answer

OMB Circular A-122 established cost principles for nonprofits; it was consolidated into 2 CFR Part 200 (Uniform Guidance) in 2014.

Grant Writing Practice Test