Chapter 15: Government Grants and Contracts

Test Bank

Multiple Choice

1. The three models theorists use to study the relationships between nonprofit organizations and governments are supplementary, complementary, and ______.

A. adversarial

B. oppositional

C. compensatory

D. supplementary

Learning Objective: 15-5: Identify principal sources of information on the availability of government grants and contracts.

Cognitive

2. Which charitable subsector receives the largest share of government financial support?

A. arts

B. religious

C. educational

D. human service

Learning Objective: 15-4: Identify the benefits and risks for a nonprofit organization in receiving government support.

Cognitive Domain: Knowledge

Answer Location: Chapter Introduction

Difficulty Level: Easy

3. In what decade were Medicare and Medicaid started?

A. 1960s

B. 1970s

C. 1980s

D. 1990s

Learning Objective: 15-4: Identify the benefits and risks for a nonprofit organization in receiving government support.

Cognitive Domain: Knowledge

Answer Location: Changes in Sources and Patterns of Support

Difficulty Level: Easy

4. In which decade did the federal government delegate responsibility for managing block grants to the states?

A. 1960s

B. 1970s

C. 1980s

D. 1990s

Learning Objective: 15-5: Identify principal sources of information on the availability of government grants and contracts.

Cognitive Domain: Knowledge

Answer Location: Changes in Sources and Patterns of Support

Difficulty Level: Easy

5. Government funding made directly to an organization is called a/an ______.

A. fee

B. grant

C. invoice

D. contract

Learning Objective: 15-1: Define grants, contracts, and fees.

Cognitive Domain: Knowledge

Answer Location: Grants, Contracts, and Fees

Difficulty Level: Easy

6. Nonprofit organizations have a competitive advantage over for-profit organizations securing government contracts because ______.

A. government officials trust nonprofits more than for-profits

B. public officials perceive for-profit organizations provide poorer services

C. government officials no longer perceive for-profit organizations as creditworthy

D. nonprofits are distancing themselves from relationships with for-profit organizations

Learning Objective: 15-4: Identify the benefits and risks for a nonprofit organization in receiving government support.

Cognitive Domain: Knowledge

Answer Location: Government Support: Opportunities and Challenges

Difficulty Level: Easy

7. Which source of government funding listed below is a type of pay-for-success contract?

A. block grant

B. fees for service

C. social impact bond

D. pay-for-success funding

Learning Objective: 15-3: Describe the differences among various types of government contracts.

Cognitive Domain: Knowledge

Answer Location: Changes in Sources and Patterns of Support

Difficulty Level: Easy

8. A grant is an award of money that is paid ______.

A. on a strict reimbursement basis

B. upfront or in regular installments

C. after all the outcomes have been measured

D. after the completion of the contracted work

Learning Objective: 15-3: Describe the differences among various types of government contracts.

Cognitive Domain: Knowledge

Answer Location: Grants, Contracts, and Fees

Difficulty Level: Easy

9. Providing students federal funds to pay for college tuition is an example of a ______.

A. merger

B. voucher

C. joint venture

D. charitable gift

Learning Objective: 15-3: Describe the differences among various types of government contracts.

Cognitive Domain: Knowledge

Answer Location: Grants, Contracts, and Fees

Difficulty Level: Easy

10. XYZ nonprofit’s request for a federal government contract was denied. XYZ may appeal this decision to the ______.

A. Department of Justice

B. Office of Management and Budget

C. Government Accountability Office

D. Office of Grant and Contract Management

Learning Objective: 15-3: Describe the differences among various types of government contracts.

Cognitive Domain: Knowledge

Answer Location: Grants, Contracts, and Fees

Difficulty Level: Easy

11. Witesman and Fernandez write that government officials ______.

A. do not have much trust in nonprofit organizations

B. are more likely to award risky contracts to for-profit organizations

C. monitor nonprofit organizations more than for-profit organizations

D. award nonprofit organizations contracts for a longer period of time than for-profits

Learning Objective: 15-4: Identify the benefits and risks for a nonprofit organization in receiving government support.

Cognitive Domain: Knowledge

Answer Location: Government Support: Opportunities and Challenges

Difficulty Level: Easy

12. The term “performance based” in a contract means the ______.

A. payment is made through the use of vouchers

B. grant recipient is not required to show measurable outcomes

C. payment and renewal of the grant are contingent on meeting outcome goals

D. grant recipient must demonstrate performance outcomes before receiving a grant

Learning Objective: 15-4: Identify the benefits and risks for a nonprofit organization in receiving government support.

Cognitive Domain: Knowledge

Answer Location: Government Support: Opportunities and Challenges

Difficulty Level: Easy

13. Government funders favor ______.

A. larger organizations over smaller ones

B. smaller organizations over larger ones

C. for-profits organizations over nonprofit organizations

D. religious organizations over nonreligious organizations

Learning Objective: 15-4: Identify the benefits and risks for a nonprofit organization in receiving government support.

Cognitive Domain: Knowledge

Answer Location: Government Support: Opportunities and Challenges

Difficulty Level: Easy

14. The acronym RFP refers to ______.

A. request for proposals

B. referring funds programs

C. reduced funding proposals

D. repeated funding programs

Learning Objective: 15-5: Identify principal sources of information on the availability of government grants and contracts.

Cognitive Domain: Knowledge

Answer Location: Identifying Grant Opportunities

Difficulty Level: Easy

15. Notices of funding availability are published in the Federal ______.

A. Register

B. 1-800 hotline

C. telephone registry

D. directory of assistance

Learning Objective: 15-5: Identify principal sources of information on the availability of government grants and contracts.

Cognitive Domain: Knowledge

Answer Location: Identifying Grant Opportunities

Difficulty Level: Easy

16. Federal grant programs encourage ______.

A. organizational autonomy

B. outsourcing administrative costs

C. collaboration between nonprofit organizations

D. the hiring of workers from unemployment lists

Learning Objective: 15-4: Identify the benefits and risks for a nonprofit organization in receiving government support.

Cognitive Domain: Knowledge

Answer Location: Preparing and Submitting an Application or Proposal

Difficulty Level: Easy

17. The trend toward pay-for-success contracts has increased the need for ______.

A. policy analysts

B. for-profit corporations

C. government contractors

D. professional grant managers

Learning Objective: 15-4: Identify the benefits and risks for a nonprofit organization in receiving government support.

Cognitive Domain: Knowledge

Answer Location: Preparing and Submitting an Application or Proposal

Difficulty Level: Easy

18. Which federal statute provides guidance regarding the issuing of grants and contracts?

A. Federal Grant and Contract Act of 1958

B. Federal Grant and Cooperative Act of 1977

C. Federal Guide for Issuing Grants and Contracts

D. Office of Management and Budget Grant and Contract Guidelines

Learning Objective: 15-2: Describe the differences between grants and contracts.

Answer Location: Grants, Contracts, and Fees

Cognitive Domain: Knowledge

Difficulty Level: Easy

19. The first step in pursuing government financial support is to ______.

A. lobby politicians

B. prepare a grant application

C. identify available programs

D. determine if an organization is eligible to apply

Learning Objective: 15-5: Identify principal sources of information on the availability of government grants and contracts.

Cognitive Domain: Knowledge

Answer Location: Identifying Grant Opportunities

Difficulty Level: Easy

20. A centralized resource providing access to over 1,000 federal grant programs is the ______.

A. Grants.gov Internet site

B. Office of Management and Budget

C. Government Accountability Office

D. Governmentfunds.com Internet site

Learning Objective: 15-5: Identify principal sources of information on the availability of government grants and contracts.

Cognitive Domain: Knowledge

Answer Location: Identifying Grant Opportunities

Difficulty Level: Easy

21. If receipt of a federal grant frees up organization funds for other uses, the money spent for other purposes is referred to as ______.

A. fungible

B. nonfungible

C. antifungible

D. interfungible

Learning Objective: 15-4: Identify the benefits and risks for a nonprofit organization in receiving government support.

Cognitive Domain: Comprehension

Answer Location: Evaluating Grant Opportunities

Difficulty Level: Medium

22. According to Boris, state governments are more likely than federal governments to ______.

A. be inflexible

B. delay payments

C. deny applications

D. delay processing applications

Learning Objective: 15-4: Identify the benefits and risks for a nonprofit organization in receiving government support.

Cognitive Domain: Comprehension

Answer Location: Government Support: Opportunities and Challenges

Difficulty Level: Medium

23. The Urban Institute recommends government and nonprofit organizations collaborate to simplify the grant process by ______.

A. standardizing reporting formats

B. involving the for-profit sector in the review process

C. improving public involvement in the review process

D. involving other nonprofit organizations in the review process

Learning Objective: 15-4: Identify the benefits and risks for a nonprofit organization in receiving government support.

Cognitive Domain: Knowledge

Answer Location: Government Support: Opportunities and Challenges

Difficulty Level: Easy

24. Researchers have found that performance-based contracts have increased the power of nonprofit ______.

A. clients

B. volunteers

C. boards of directors

D. chief executive officers

Learning Objective: 15-4: Identify the benefits and risks for a nonprofit organization in receiving government support.

Cognitive Domain: Knowledge

Answer Location: Government Support: Opportunities and Challenges

Difficulty Level: Easy

25. Government agencies announce grant opportunities by issuing ______.

A. revenue bonds

B. tax-exempt bonds

C. requests for proposals

D. public service announcements

Learning Objective: 15-5: Identify principal sources of information on the availability of government grants and contracts.

Cognitive Domain: Knowledge

Answer Location: Identifying Grant Opportunities

Difficulty Level: Easy

True/False

1. Nonprofit organizations cannot receive contracts from local governments.

Learning Objective: 15-3: Describe the differences among various types of government contracts.

Cognitive Domain: Knowledge

Answer Location: Changes in Sources and Patterns of Support

Difficulty Level: Easy

2. The relationship between a nonprofit organization and a government funding source is considered to be complementary.

Learning Objective: 15-2: Describe the differences between grants and contracts.

Cognitive Domain: Comprehension

Answer Location: Chapter Introduction

Difficulty Level: Medium

3. Nonprofit organizations cannot combine government funds with private funds.

Learning Objective: 15-4: Identify the benefits and risks for a nonprofit organization in receiving government support.

Cognitive Domain: Knowledge

Answer Location: Chapter Introduction

Difficulty Level: Easy

4. Dependence on government contracts makes nonprofits more responsive to government officials.

Learning Objective: 15-4: Identify the benefits and risks for a nonprofit organization in receiving government support.

Cognitive Domain: Knowledge

Answer Location: Government Support: Opportunities and Challenges

Difficulty Level: Easy

5. Public officials perceive the purposes of nonprofits are not aligned with the purposes of government.

Learning Objective: 15-4: Identify the benefits and risks for a nonprofit organization in receiving government support.

Cognitive Domain: Knowledge

Answer Location: Government Support: Opportunities and Challenges

Difficulty Level: Easy

6. Government funds rarely support all indirect costs such as administrative expenses.

Learning Objective: 15-4: Identify the benefits and risks for a nonprofit organization in receiving government support.

Cognitive Domain: Knowledge

Answer Location: Government Support: Opportunities and Challenges

Difficulty Level: Easy

7. The program Temporary Assistance for Needy Families is funded through a mix of federal and state funds.

Learning Objective: 15-4: Identify the benefits and risks for a nonprofit organization in receiving government support.

Cognitive Domain: Knowledge

Answer Location: Government Support: Opportunities and Challenges

Difficulty Level: Easy

8. Letter contracts are used when a government needs work to begin immediately.

Learning Objective: 15-1: Define grants, contracts, and fees..

Cognitive Domain: Knowledge

Answer Location: Grants, Contracts, and Fees

Difficulty Level: Easy

Short Answer

1. Identify and explain the three basic models theorists use to explore nonprofit and government grant relationships.

Learning Objective: 15-3: Describe the differences among various types of government contracts.

Cognitive Domain: Comprehension

Answer Location: Chapter Introduction

Difficulty Level: Medium

2. Investigate the patterns of support from the 1960s to the 1980s and discuss how they impacted government support to nonprofits.

Learning Objective: 15-5: Identify principal sources of information on the availability of government grants and contracts.

Cognitive Domain: Analysis

Answer Location: Seeking Government Support

Difficulty Level: Hard

3. Compare and contrast the terms “grants” and “contracts.”

Learning Objective: 15-1: Define grants, contracts, and fees..

Cognitive Domain: Analysis

Answer Location: Grants, Contracts, and Fees

Difficulty Level: Hard

4. Identify and describe three opportunities that increase a nonprofit’s opportunity for government support over a for-profit corporation.

Learning Objective: 15-4: Identify the benefits and risks for a nonprofit organization in receiving government support.

Cognitive Domain: Comprehension

Answer Location: Government Support: Opportunities and Challenges

Difficulty Level: Medium

5. Identify four challenges a nonprofit faces when working with the government. Discuss methods the nonprofit can use to minimize those challenges.

Learning Objective: 15-4: Identify the benefits and risks for a nonprofit organization in receiving government support.

Cognitive Domain: Application

Answer Location: Government Support: Opportunities and Challenges

Difficulty Level: Medium

6. Explain the role that collaboration can play when writing a grant proposal.

Learning Objective: 15-4: Identify the benefits and risks for a nonprofit organization in receiving government support.

Cognitive Domain: Comprehension

Answer Location: Government Support: Opportunities and Challenges

Difficulty Level: Medium

7. Explain how nonprofits can use the policy arena to enhance their ability to secure government funding.

Learning Objective: 15-4: Identify the benefits and risks for a nonprofit organization in receiving government support.

Cognitive Domain: Comprehension

Answer Location: Government Support: Opportunities and Challenges

Difficulty Level: Medium

8. Explain the gainful employment rule and how it is applied by the U.S. Department of Education.

Learning Objective: 15-4: Identify the benefits and risks for a nonprofit organization in receiving government support.

Cognitive Domain: Application

Answer Location: Government Support: Opportunities and Challenges

Difficulty Level: Medium

9. Compare and contrast the terms “grant writing” and “proposal writing.”

Learning Objective: 15-5: Identify principal sources of information on the availability of government grants and contracts.

Cognitive Domain: Analysis

Answer Location: Seeking Government Support

Difficulty Level: Hard

10. Identify and explain Hall’s six criteria for evaluating grant opportunities.

Learning Objective: 15-5: Identify principal sources of information on the availability of government grants and contracts.

Cognitive Domain: Comprehension

Answer Location: Evaluating Grant Opportunities

Difficulty Level: Medium

11. Evaluate the impact pay-for-success contracts have had on a nonprofit organization’s ability to manage government funding programs.

Learning Objective: 15-4: Identify the benefits and risks for a nonprofit organization in receiving government support.

Cognitive Domain: Analysis

Answer Location: Government Support: Opportunities and Challenges

Difficulty Level: Hard