Certified Research Administrator Practice Exam

In a Challenge Grant, what is typically the nature of the upper limit?

1. Usually no fixed upper limit

2. Usually a variable upper limit plus a challenge minimum below which no grant will be made

3. Usually a fixed upper limit plus a challenge minimum below which no grant will be made

4. Usually a fixed upper limit plus a challenge minimum below which only half of the grant will be made

The correct answer is: Usually a fixed upper limit plus a challenge minimum below which no grant will be made

In a Challenge Grant, the structure usually involves both a fixed upper limit and a challenge minimum requirement. The fixed upper limit indicates the maximum amount of funding that can be awarded, ensuring that the grantor can control expenditures within a set budget. The challenge minimum represents the baseline threshold that must be met to qualify for the grant; this is designed to encourage recipients to raise additional funds from other sources. This approach serves a dual purpose: it incentivizes matching contributions, which can amplify the resources available for specific projects, and ensures that only serious proposals with demonstrated financial backing receive funding. This model aligns the interests of both grantor and grantee, fostering a partnership that encourages additional fundraising efforts. Understanding that both elements—upper limit and challenge minimum—are integral to the design of Challenge Grants helps clarify why option C is the most accurate representation of this funding mechanism.