Chapter Quizzes – Nonprofit MGNT 4080 Midterm

The requirement that nonprofits meet the expectations for measurable results has increased the need for _____.
A)
empowered customers
B)
funding to state governments
C)
voucher-type payments
D)
management

D)
management

Demands for accountability and the need for systems and procedures to comply with greater scrutiny and regulation also have contributed to the need for _____.
A)
philanthropic contributions
B)
long-term investments in nonprofits
C)
trained managers
D)
dramatic growth of organizations

C)
trained managers

Most nonprofits obtain revenue from _____.
A)
the sale of products and services
B)
multiple sources
C)
corporate sponsors only
D)
government contracts only

B)
multiple sources

Managers of nonprofit organizations must measure their success by _____.
A)
successfully providing goods and services to customers, thereby increasing the organization’s resources
B)
their ability to manage staff resources without the advantage of a top-down business management hierarchy
C)
the number of volunteers they can recruit in a fiscal year
D)
their ability to achieve a mission and to meet their financial bottom line

D)
their ability to achieve a mission and to meet their financial bottom line

Which decade marked a turning point in public policy, with government outsourcing more of the delivery and management of social and human services to nonprofits, which resulted in the increased need for professional management in nonprofit organizations and an increased number of students interested in working for nonprofit organizations?
A)
the 1990s
B)
the 1980s.
C)
the 1960s
D)
the 1970s

B)
the 1980s.

Those who view nonprofit organizations primarily as social institutions portray nonprofit managers as_____ .
A)
leaders with strong business backgrounds
B)
the glue that holds the rest of the organization together.
C)
stewards of their organization or servants of society
D)
social entrepreneurs

C)
stewards of their organization or servants of society

The complexity of the nonprofit manager’s job and the multiple pressures inherent in the job frequently result in _____ .
A)
honorary degrees
B)
six-figure salaries
C)
frustration and burnout
D)
enrolling in professional management refresher courses

C)
frustration and burnout

One overarching force that has driven the nonprofit management revolution of recent decades has been _____ .
A)
the need to hire formally trained managers
B)
the development of the MPA degree programs in universities, which differentiated the study of public management from the discipline of political science
C)
the invasion of for-profit business into philanthropy
D)
the introduction of competition resulting from changes in funding patterns, growth of the sector, and increasing demands for accountability.

D)
the introduction of competition resulting from changes in funding patterns, growth of the sector, and increasing demands for accountability.

Throughout most of the history of management as a recognized discipline, most theorists have _____ .
A)
maintained that businesses required more educated managers
B)
argued that common management principles would apply equally to all organizations
C)
stated that government organizations have the most need of managers with distinctive skills
D)
claimed that only business managers have any need of professional development.

B)
argued that common management principles would apply equally to all organizations

Simultaneous with with the increase in nonprofit management literature in the 1990s and 2000s, what also grew rapidly?
A)
government-funded programs to educate nonprofit managers
B)
academic journals that specialized in nonprofit management
C)
educational programs related to nonprofit management
D)
competition for philanthropic missions by for-profits

C)
educational programs related to nonprofit management

The perception that nonprofits are less well-managed than businesses is _____
A)
cultivated mostly by government agencies
B)
not based on any research and is a myth
C)
cultivated mostly by for-profit corporations
D)
provides the basis of many nonprofit management courses

B)
not based on any research and is a myth

There has been a shift in thinking about nonprofits that emphasizes _____
A)
valuing the financial bottom line over achieving the nonprofit’s mission
B)
increasing the salaries of managers to levels comparable to their business peers
C)
building the strength of organizations themselves
D)
hiring managers with MBAs

C)
building the strength of organizations themselves

The old “business as usual” approach for nonprofits has changed as a result of _____
A)
greater demand for accountability
B)
all of these.
C)
the reduction or elimination of federal funding
D)
changes in funding trends that led to increased competition

B)
all of these.

According to Herman, one of the differences of managing a nonprofit versus a for-profit corporation is_____.
A)
nonprofit stakeholders are the same as stockholders
B)
nonprofit decisions must be consistent with the mission and ethical values of the organization
C)
none of these.
D)
nonprofits are not allowed to make any profits

B)
nonprofit decisions must be consistent with the mission and ethical values of the organization

According to Higgins, nonprofit organizations have _____.
A)
constituents that don’t really know what they do
B)
board and staff members with different goals and agendas
C)
constituents with only one perspective
D)
many volunteers

B)
board and staff members with different goals and agendas

Research literature sources on nonprofit management include _____.
A)
all of these
B)
practitioners and consultants working in the nonprofit field
C)
management theory from the business and public sectors
D)
social scientists who study nonprofit organizations

A)
all of these

Almost _____ of the revenue of charitable nonprofits comes from government grants and payments for services under programs such as Medicare and Medicaid
A)
one half
B)
three fourths
C)
one third
D)
one fourth

C)
one third

A certain mistrust of ________ has been a pervasive and continuing aspect of American culture and has provided philosophical support for private, voluntary initiatives throughout the nation’s history,

A)
lawyers
B)
volunteers
C)
government
D)
universities

C)
government

Who authored the 1889 essay, titled “The Gospel of Wealth,” remains a classic statement of the philosophy underpinning the American tradition of philanthropy?

A)
Warren Buffet

B)
Andrew Carnegie

C)
John D. Rockefeller

D)
Theodore Roosevelt

B)
Andrew Carnegie

_______ is defined as giving intended to meet current individual human needs or to alleviate current human suffering.
A)
charity

B)
voluntarism

C)
nonprofitism

D)
philanthropy

A)
charity

______ is the phrase used to describe nonprofits that have a social objective but blend traditional nonprofit methods and commercial principles in their generation of revenue.

A)
civil society

B)
tax-exempt sector

C)
charitable sector

D)
social enterprise

D)
social enterprise

There is an increasing number of organizations that operate under both nonprofit and for-profit legal forms. These organizations are often referred to as _______ .
A)
hybrid organizations

B)
voluntary sector organizations

C)
social sector organizations

D)
civil service organizations

A)
hybrid organizations

According to the text, the number of nonprofits operating in the United States today is around _______ .

A)
2.6 million

B)
10.2 million

C)
500,000

D)
1.9 million

D)
1.9 million

In 2009, the nonprofit sector employed what percentage of the total U.S. workforce?
A)
10 percent

B)
50 percent

C)
one percent

D)
5 percent

A)
10 percent

What is intended to encourage charitable giving and sustain the services provided by charitable organizations?

A)
the lifting of limitations on lobbying

B)
tax deduction of gifts by donors

C)
receiving free health care vouchers in exchange for gifts

D)
being classified as a 501(c)(3) organization

B)
tax deduction of gifts by donors

Who wrote the article “Bowling Alone: America’s Declining Social Capital” and discussed a decline in civic engagement among Americans?
A)
Robert Putnam

B)
Bill Gates

C)
Michael Moore

D)
Andrew Carnegie

A)
Robert Putnam

A nonprofit that qualifies under Section 501 (c) (3) cannot support candidates for public office and must limit its expenditures on _____.

A)
advocacy

B)
staff salaries

C)
lobbying

D)
legal counsel

C)
lobbying

This U.S. principle prevents government funds from going directly to religious congregations or to organizations that would use them for religious activities.
A)
separation of church and state

B)
charitable choice provisions

C)
the non-distribution test

D)
tax-exempt provisions

A)
separation of church and state

Which sub-sector of charitable nonprofits is the least professionalized?
A)
religious organizations

B)
environmental organizations

C)
arts and culture organizations

D)
advocacy organizations

A)
religious organizations

Organizations that are exempt under Section 501 (c) (4), whose purpose is to work for social change are referred to by the Internal Revenue Service (IRS) as _____
A)
environmental organizations
B)
arts and culture organizations
C)
social welfare organizations
D)
religious organizations

C)
social welfare organizations

The National Taxonomy of Exempt Entities (NTEE) divides nonprofit organizations into categories based on the organizations’ _____

A)
budget and staff

B)
purposes, activities, and programs

C)
type of clients served

D)
mission and vision statements

B)
purposes, activities, and programs

If measured by the total number of organizations, the largest subsector of charitable nonprofits is the _____ .

A)
religious sector

B)
human service sector

C)
international and foreign affairs sector

D)
health services sector

B)
human service sector

If measured by total revenue, the number of employees, and its share of total wages and salaries, which subsector of charitable nonprofits is the largest nonprofit sector?

A)
international and foreign affairs sector
B)
human service sector
C)
health services sector
D)
religious sector

C)
health services sector

These are organizations that exist for the sole purpose of directing money to other nonprofits

A)
banks
B)
funding intermediaries
C)
international development entities
D)
advocacy organizations

B)
funding intermediaries

Organizations that are classified as tax-exempt are not required to pay _____
A)
capital gains tax
B)
sales tax
C)
all of these
D)
property tax
E)
income tax

C)
all of these

Private foundations most often are funded by _____ .
A)
a vast number of corporate sponsors
B)
community organization
C)
a single donor or a small number of donors
D)
Congress

C)
a single donor or a small number of donors

Unlike public charities, private foundations are not permitted to engage in _____ .

A)

international exchange programs

B)

providing direct services

C)

fund-raising

D)

lobbying

D)
lobbying

Salamon’s Nonprofit Anatomy classifies nonprofit organizations by _____ .
A)
who receives the principal benefit of their activities.
B)
the amount of revenue received in a fiscal year.
C)
the nature of their activities.
D)
whether they are eligible to receive tax-exempt gifts.

A)
who receives the principal benefit of their activities.

Exempt activities are those that _____ .
A)
employ only volunteers
B)
generate income for the organization.
C)
directly address a nonprofit organization’s social missions
D)
provide direct service

C)
directly address a nonprofit organization’s social missions

Museums, orchestras, and colleges and universities are classified as 501 (c) (3) by the IRS.

True
False

True

The person credited with helping to establish the distinction between the concepts of charity and philanthropy was Warren Buffet.

True
False

False

Sociologists describe nonprofits as _______.
A)
the basis of a nation’s economy
B)
organizations that engage in irrational acts
C)
the voice of the people
D)
mediating structures

D)
mediating structures

The type of market failure in which a breakdown in the ideal or typical relationship between a buyer and seller occurs is called _______.
A)
information asymmetry
B)
government failure
C)
demand heterogeneity
D)
contract failure

D)
contract failure

According to Lohmann, after private goods and public goods, what is the third category of goods?
A)
dry goods
B)
charitable goods
C)
tax-exempt goods
D)
common goods

D)
common goods

Nonprofits are ______.
A)
self-governing
B)
controlled by the government
C)
controlled by individual owners
D)
controlled by corporate sponsors

A)
self-governing

The is a guide to every action taken by the organization and is the principal standard against which its performance should be measured.
A)
mission statement
B)
core of values
C)
charter
D)
business plan

A)
mission statement

Nonprofits are driven by _______ .
A)
the need to maximize profit
B)
achievement of the missions for which they exist
C)
the success of fund-raising campaigns
D)
the need to meet the expectations of a majority

B)
achievement of the missions for which they exist

enables the system to adapt to changing circumstances.
A)
Feedback
B)
External forces
C)
Internal dynamics
D)
Bureaucracies

A)
Feedback

This type of system is entirely self-sufficient and impervious to influences from its environment.

A)
nonprofit system
B)
open system
C)
closed system
D)
a hybrid system

C)
closed system

This theory explains the behavior of organizations in terms of their dependence on external constituencies.

A)
supply-side theory
B)
resource dependence theory
C)
institutional theory
D)
theory of the commons

B)
resource dependence theory

One significant risk of resource dependency is actions taken by the nonprofit to alter its goals and activities to satisfy the contributor of funds. This is also called _______.

A)
performance measurement
B)
population ecology
C)
information asymmetry
D)
goal displacement

D)
goal displacement

One way to reduce dependency and thus maintain more autonomy is to _______.

A)
use a single source of revenue
B)
diversify the sources of revenue
C)
rewrite the mission statement
D)
lobby for more government assistance

B)
diversify the sources of revenue

The concept that maintains that organizations in the same field become more like each other as a result of facing similar influences from their environments is _______.

A)
institutional theory
B)
goal displacement
C)
isomorphism
D)
task environment theory

C)
isomorphism

_______ refers to the tendency of organizations to mimic each other, specifically in models to be adopted.
A)
Normative isomorphism
B)
Mimetic isomorphism
C)
Coercive isomorphism
D)
Institutional isomorphism

B)
Mimetic isomorphism

Normative isomorphism arises when organizations are influenced by the same standards of _______

A)
professional practice
B)
achievement
C)
bureaucracy
D)
mimicry

A)
professional practice

When individuals do not have complete information or lack the ability to understand or judge the quality of the good they seek to purchase, there is _______

A)
information asymmetry
B)
resource dependency
C)
goal displacement
D)
consumer ignorance

A)
information asymmetry

An approach taken by some sociologists to explain the birth and death of organizations, which analyzes organizations in terms of population density, is _______ .

A)
voluntary culture
B)
feedback
C)
population ecology
D)
isomorphism

C)
population ecology

Great organizations that produce excellent results have _______ .

A)
weak cultures
B)
flexible cultures
C)
formal cultures
D)
strong cultures

D)
strong cultures

According to Edgar Schein, logos, ceremonies, and symbols belong to this defined category of culture.

A)
voluntaristic values
B)
basic values
C)
artifacts and creations
D)
basic assumptions

C)
artifacts and creations

Nonprofits are not allowed to undertake experimentation with regard to research and development of new programs.

A) True

B) False

B) False

Excess revenues (profits) gained by a nonprofit must be reinvested in the organization.

A) True
B) False

A) True

Elected boards are MOST common in ______

A) public organizations
B) charitable nonprofits
C) member-serving and advocacy organizations
D) organizations headed by a chief executive officer

C) member-serving and advocacy organizations

In a self-perpetuating board, new members are selected by ______.

A) a selection committee
B) the chief executive officer
C) the existing members of the board
D) the membership of the organization

C) the existing members of the board

An ex officio seat on a board is held by ______.

A) the highest ranking officer in the organization

B) an unappointed individual who holds the seat by virtue of their position

C) a randomly selected individual

D) an individual appointed by the most senior member of the board

B) an unappointed individual who holds the seat by virtue of their position

Financial penalties that punish individuals who permit improper transgressions are called ______.

A) excess benefit transactions
B) intermediate sanctions
C) means to an end
D) give and get policies

B) intermediate sanctions

Establishing the nonprofit’s mission is the responsibility of the organization’s ______.

A) governing Board
B) Chief Executive Officer
C) Human Resource Manager
D) members

A) governing Board

When a board is operating in the fiduciary mode, it is concerned with the ______.

A) evaluating the chief executive officer’s performance

B) achievement of the organization’s long-term goals

C) stewardship of the organization’s assets

D) implementation of new programs

C) stewardship of the organization’s assets

Which organizational model places the board at the top of the hierarchy and the chief executive officer as an agent?

A) purposive-rational
B) the policy governance
C) social-constructionist
D) board-centered leadership

A) purposive-rational

According to BoardSource, exceptional Boards ensure congruence between its ______.

A) volunteers and members of the board

B) decisions and core values

C) direction and its financial goals

D) governance duties and organizational priorities

B) decisions and core values

According to Dr. Worth, today’s Boards are expected to raise money and ______.

A) cooperate with the organization’s staff and volunteers
B) motivate the nonprofit organization’s members
C) be more aggressive in monitoring the organization’s performance
D) increase communication levels between the board and the community

C) be more aggressive in monitoring the organization’s performance

Which type of board is commonly found in public organization?
A) advisory
B) appointed
C) elected
D) self-perpetuating

B) appointed

What board duty is defined as members putting the interests of the organization above their personal interests?

A) obedience

B) selflessness

C) care

D) loyalty

D) loyalty

What legal concept states officers cannot unreasonably benefit from the organization’s funds?

A) conflict of interest
B) intermediate sanctions
C) obedience
D) private inurement

D) private inurement

An excess benefit transaction occurs when ______.

A) employee or executive compensation exceeds the value of services provided

B) a service contract exceeds financial limits

C) an organization exceeds its fundraising goals

an organization goes above and beyond to meet its mission

A) employee or executive compensation exceeds the value of services provided

An excess benefit transaction occurs when ______.

A) employee or executive compensation exceeds the value of services provided

B) a service contract exceeds financial limits

C) an organization exceeds its fundraising goals

D) an organization goes above and beyond to meet its mission

A) employee or executive compensation exceeds the value of services provided

Which board responsibility requires the MOST effort?

A) maintaining salary levels
B) administering benefits
C) raising philanthropic funds
D) monitoring moral behaviors

C) raising philanthropic funds

In Thornton’s 2012 survey of nonprofit boards, what activity was identified as the most important responsibility of boards?

A) maintaining the organization’s reputation
B) ensuring effective programs
C) accountability
D) strategic planning

D) strategic planning

The Internal Revenue Service in 2009 revised which form to be a financial and governance report.

A) Form 990, Return of Organization Exempt From Income Tax
B) Form 1040, U.S. Individual Income Tax Return
C) Form 1023, Application for Recognition of Exemption
D) Form 1040V, Payment Voucher

A) Form 990, Return of Organization Exempt From Income Tax

In Carver’s policy governance model, Carver argues boards should lead focusing their attention on establishing ______.

A) management positions

B) advisory groups

C) policies

D) performance evaluations

C) policies

Chait, Ryan, and Taylor suggested nonprofit boards focus their attention on ______.

A) growth
B) policy
C) monetary goals
D) critical issues facing the organization

D) critical issues facing the organization

Who did Herman and Heimovics find as being responsible for the organization’s success or failure?

A) marketing department
B) board
C) the Chief Executive Office
D) shareholders

C) the Chief Executive Office

What organization assembled a panel of experts to identify best practices for effective governance in organizations?

A) BoardSource

B) Internal Revenue Service

C) Smithsonian Institute

D) Independent Sector

A) BoardSource

The chair of a nonprofit board of directors asked the chief executive officer to provide a report regarding fund-raising expenses. The chair is practicing which best practice?

A) ethos of transparency
B) revitalization
C) continuous learning
D) strategic thinking

A) ethos of transparency

A nonprofit board asked an outside consulting organization to assess the nonprofit’s program performance. Which best practice is the board applying?

A) results-oriented
B) independent-mindedness
C) strategic thinking
D) revitalization

A) results-oriented

A nonprofit board hired a consultant to help the directors identify new ways to improve organizational performance. According to Chait, the board is operating in what type of mode?

A) fiduciary
B) evaluation
C) generative
D) strategic

C) generative

A nonprofit organization’s finance committee is listening to the advice of a financial expert on how to manage the organization’s investments. The board is practicing which duty?

A) diligence

B) obedience

C) loyalty

D) care

D) care

A board of directors is debating if a proposed new program falls within the organization’s mission. The board is applying which type of duty?

A) care
B) obedience
C) investment
D) loyalty

B) obedience

A nonprofit board is establishing ground rules regarding what type of fund-raising efforts would not be allowed. The board is setting a policy that Carver would refer to as a/an ______.

A) legal means
B) illegal activity
C) means to the end
D) ends to be achieved

C) means to the end

______ means a person is perceived by himself and the board as the organization’s formal authority.

A) Social rationalism
B) Emergent perception
C) Psychological centrality
D) Purposive rationality

C) Psychological centrality

What is the responsibility of overseeing day-to-day operations called?

A) control
B) planning
C) leadership
D) management

D) management

According to Dr. Worth (textbook author), a lack of leadership by the chief executive officer will eventually lead to ______.

A) a corporate takeover
B) drift, decline, and failure
C) board reorganization
D) more democratic leadership

B) drift, decline, and failure

Which theory explains leadership in terms of the innate characteristics of individuals?

A) trait
B) skills
C) behavior
D) contingency

A) trait

What leadership style focuses on relationships?

A) autocratic
B) servant
C) task-oriented
D) transactional

B) servant

The significant characteristic of transformational leadership is that it _____.

A) gives a leader absolute power

B) reduces the responsibility of the leader

C) balances power between the leader and followers

D) offers an approach to leading both followers and organizations

D) offers an approach to leading both followers and organizations

The idea that a leader must be friendly but not overly familiar with subordinates is called _____.

A) servant leadership
B) social distance
C) persuasive appeal
D) social leadership

B) social distance

Many nonprofit chief executive officers spend the majority of their time on _____.

A) marketing

B) fund-raising

C) human resource management

D) research and development

B) fund-raising

According to Herman and Heimovics, effective chief executive officers stay focused on _____.

A) program development
B) key goals and outcomes
C) the organization’s revenues
D) competitors

B) key goals and outcomes

A _____ is a way of understanding something.

A) behavior
B) transition
C) frame
D) grid

C) frame

According to Dym and Hutson, “organizational alignment” is ______ .

A) two-way process
B) controlled by the Chief Executive Officer
C) designed by the Board of Directors
D) difficult

A) two-way process

To minimize risk, nonprofit boards must select a new chief executive officer based on the organization’s ______ .

A) mission
B) revenues
C) collaborative relationships
D) history

A) mission

According to Kotter’s top-down approach, efforts at transformational change often fail because leaders allow too much ______ .

A) communication
B) flexibility
C) empowerment
D) complacency

D) complacency

According to Collins, the power to simply make decisions is referred to as ______ leadership.

A) legislative
B) charismatic
C) figurehead
D) executive

D) executive

A leader who behaves in ways that cause others to see themselves as leaders is practicing ______ leadership .

A) transformational
B) legislative
C) behavioristic
D) transactional

A) transformational

A common method researchers use to identify successful leaders is based on _______ .

A) levels of complacency
B) staff turnover
C) perceptions of effectiveness
D) revenues generated

C) perceptions of effectiveness

Which management activity is growing due to reduced government support for nonprofit organizations?

A) employee development and supervision
B) fund-raising
C) leading volunteers
D) staff training

B) fund-raising

Leaders who use a political frame are ______.

A) partial to public opinion
B) less likely to build internal relationships
C) more likely to go on to run for political office
D) sensitive to external forces that might affect the organization

D) sensitive to external forces that might affect the organization

According to Dym and Hutson’s “alignment map,” what three components must align for a perfect leadership fit?

A) leaders, organizations, and the community
B) program constituents, staff, and leaders
C) board members, the chief executive officer, and program constituents
D) paid staff, leaders, and volunteers

A) leaders, organizations, and the community

Internal preparation for executive transition is a shared responsibility of the nonprofit Board and the ______.

A) Chief Executive Officer
B) organizational founder
C) Board chair-elect
D) paid staff

A) Chief Executive Officer

According to Dr. Worth, what style of leadership is best suited for leading nonprofit organizations?

A) legislative

B) autocratic

C) transformational

D) transactional

C) transformational

A nonprofit’s Chief Executive Officer is attending a working lunch with community leaders who share the nonprofit organization’s values. The CEO is practicing which type of leadership?

A) transactional
B) autocratic
C) transformational
D) legislative

D) legislative

A nonprofit Board of Directors is interviewing individuals for a Chief Executive Officer position. The Directors want to ensure the person they hire has a personality that matches the organization’s mission. The Board members want to ensure ______.

A) alignment
B) transformation
C) cooperation
D) charisma

A) alignment

A nonprofit chief executive officer (CEO) displays little commitment to the organization’s mission. According to Blake and Mouton, the CEO has what type of management style?

A) authority-obedience
B) country club
C) team
D) impoverished

D) impoverished

Organizational leaders who change their leadership styles based on the particular circumstances of a situation are practicing ______ leadership.

A) autocratic
B) decision-making
C) contingency theory
D) trait theory

C) contingency theory

Crutchfield and Grant determined effective nonprofit Chief Executive Officers ______.

A) conduct strategic planning
B) manage their organizations as closed systems
C) share leadership with others
D) do not work outside of their expertise

C) share leadership with others

The founder of Habitat for Humanity found it difficult to turn management of the nonprofit over to a new chief executive officer. The founder was demonstrating ______ syndrome.

A) founder
B) control
C) change
D) fear

A) founder

According to Kotter, leaders planning to implement organizational change should first ______.

A) establish a sense of urgency
B) generate short-term wins
C) communicate the change vision
D) create a guiding coalition

A) establish a sense of urgency

A board of directors wants to hold an organizational retreat so they can interact with the chief executive officer, paid staff, and volunteers of their organization. The board is practicing which leadership theory?

A) social theory
B) path-goal theory
C) empowerment
D) leader-member exchange

D) leader-member exchange

Which governmental entity grants nonprofits their articles of incorporation (charters)?

A)
The federal government
B)
County governments
C)
City governments
D)
State governments

D)
State governments

For nonprofit organizations, accountability means _______.

A)
Being frank, open, and candid
B)
Answering donor’s questions
C)
Providing accounting information to the public
D)
Taking responsibility for their actions

D)
Taking responsibility for their actions

Many nonprofit managers have voluntarily adopted the provisions of _______ as a way to assure their donors they are operating with high integrity, transparency, and sound governance.

A)
Securities and Exchange Act
B)
Federal Reserve Board
C)
Internal Revenue Service
D)
Sarbanes-Oxley

D)
Sarbanes-Oxley

Whose Standards for Excellence in Nonprofit Management has become a popular model for similar nonprofit associations across the US?

A)
Independent Sector
B)
Nonprofit Times
C)
Internal Revenue Service
D)
The Maryland Association of Nonprofit Organizations

D)
The Maryland Association of Nonprofit Organizations

This organization was formed in 2001 to provide standards for the largest and best known nonprofits, especially those most widely mentioned in the media.

A)
Charity Navigator
B)
Internal Revenue Service
C)
The Independent Sector
D)
The Wise Giving Alliance

D)
The Wise Giving Alliance

A method used by most nonprofit managers to determine the effectiveness of certain actions in achieving the organization’s goals and objectives is called ________.

A)
program evaluation
B)
input analysis
C)
statistical benchmarking
D)
effectiveness evaluation

A)
program evaluation

A very high ________ may suggest an organization’s management is inefficient, or even participating in unethical or fraudulent behaviors.

A)
fundraising costs
B)
staff salaries
C)
services fees
D)
loss-to-profit

A)
fundraising costs

Leading thought in the field of performance measuring of nonprofits appear to be moving away from an emphasis on the organizations _______.

A)
ability to accomplish its stated mission.
B)
financial ratios
C)
participation in accreditation programs.
D)
ability to compete in the nonprofit sector

B)
financial ratios

In its primary definition, ______ involves comparisons among organizations, either at the macro or at the micro level.

A)
Benchmarking
B)
cost-benefit analysis
C)
accreditation
D)
Performance evaluations

A)
Benchmarking

If an organization wanted to help highlight its strengths and weaknesses for further analysis, which technique would be most useful?

A)
corporate benchmarking
B)
Peer analysis
C)
Common core indicators
D)
Statistical benchmarking

D)
Statistical benchmarking

Which assessment tool is meant to determine an organization’s success in accomplishing its mission or program effectiveness?

A)
Statistical benchmarking
B)
Outcomes Approach
C)
Peer analysis
D)
Financial ratio approach

B)
Outcomes Approach

A theoretical concept explaining the links all the way through a service delivery process is called a(n) _________.

A)
Logic model
B)
Status update
C)
Balanced scorecard
D)
activity-based profitability model

A)
Logic model

This model was developed as a way for a business (or nonprofit) to achieve a more equalized perspective on performance by combining financial data with other important variables.

A)
Common indicators
B)
Cost-benefit analysis
C)
Balanced scorecard
D)
Financial ratios

C)
Balanced scorecard

This concept adds social return to financial return in order to generate a single dollar amount that could be used as an indicator of the organization’s performance and value.

A)

Financial ratios

B)

blended value

C)

statistical benchmarking

D)

Social return on investment

D)
Social return on investment

This model holds that all organizations create value that consists of economic, social, and environmental value components, and that investors simultaneously generate all three forms of value through providing capital to organizations.

A)
Capital value
B)
Performance value
C)
Blended value
D)
Simultaneous value

C)
Blended value

A variation of the Balanced Scorecard that was designed specifically for nonprofits and that asks “Does it work?” and “Is the organization well run?” is called a(n) _________.

A)

dashboard

B)

EXCEL

C)

Effectiveness measure

D)

Balance sheet

A)
dashboard

One disadvantage of the Social Return on Investment model is that _________.

A)

it provides too much information to easily filter.

B)

the analysis process requires a lot of resources (i.e., resource intensive)

C)

it cannot be used with intangible information

D)

it does not measure the financial benefit of certain programs.

B)
the analysis process requires a lot of resources (i.e., resource intensive)

Nonprofit managers must be committed to performance measurements, but _______.

A)
not if it takes too long to implement
B)
not to accountability measures.
C)
should not become overly focused on it to the detriment of the organization’s mission.
D)
should be aware that they might be using the wrong measurement tool.

C)
should not become overly focused on it to the detriment of the organization’s mission.

In 2004, the Urban Institute and the Center for What Works undertook a project to identify a _______ that nonprofits could use to inform practice and that would be practical to implement.

A)
balanced scorecard analysis
B)
three-dimensional chart
C)
youth-mentoring project
D)
a common set of outcomes and success indicators.

D)
a common set of outcomes and success indicators.

The _____ has a mechanism that can ‘certify’ a nonprofit based on how they conduct their business.

A) Internal Revenue Service
B) Better Business Bureau
C) Securities and Exchange Commission
D) New York Stock Exchange

B) Better Business Bureau

The requirement that nonprofits achieve measurable results increased the need for ______.

management

Demands that organizational procedures comply with government regulations contributed to the need for ______.

trained managers

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Nonprofits obtain revenue from ______.

multiple sources

Managers of nonprofit organizations measure their success by ______.

achieving the mission within financial limits

Throughout history, management theorists argued that ______.

common management principles apply equally to all organizations

The perception that nonprofits are less well managed than businesses is ______.

not based on research

The double bottom line concept means nonprofit managers must ______.

achieve the mission within financial means

Individuals who believe that nonprofit organizations should apply business methods of management perceive nonprofit organizations as ______.

social enterprises

Nonprofit organizations are more poorly managed than businesses.

false

Nonprofits receive all of their revenue from governments.

false

What term defines the practice of “giving for the alleviation of human suffering?

charity

a nonprofit organization that uses commercial methods to generate revenue is referred to as a

social enterprise

what benefit created by the U.S. Congress is intended to encourage charitable giving?

income tax deductions for gifts

A nonprofit that qualifies under section 501(c)(3) must limit its expenditures on

lobbying

what is the Internal Revenue Service classification for nonprofits organizations that work for social change

advocacy

organizatioons that exist for the sole purpose of directing money to other nonprofits are called

funding intermediaries

what term identifies organization that do not have to pay federal income taxes?

tax-exempt

______ usually fund(s) private foundations

a single donor

tax exempt activities

directly support a social mission

the Internal Revenue Service classifies a social welfare organization as a

501(c)(4)

individuals who benefit without paying are called

free riders

nonprofit organizations are drriven by

the achievement of their missions

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One way to reduce dependence and thus maintain more autonomy is to

diversify the sources of revenue

a nonprofit organization landscaped the grounds of a building it occupies. This beautification improved the property values of the residences located across the street. This scenario is an example of a(n) _________ externality

positive

a nonprofit volunteer is buying groceries for a low-income family at a retail store. The volunteer is buying _____ goods.

private

T/F: nonprofit organizations differ from government organizations in that they have more flexibility to respond to the needs of diverse groups.

True

Analyze if religious worship is a private, public, or common good. Define private good, public good, common good. Then analyze religious worship.

Private goods benefit only the individual who uses it
Public goods benefit everyone
common benefits cannot be consumed alone by an individual, but neither do they benefit all people. (not everyone wants it. It’s not consumed by everyone because of that).
I categorize religious worship as a common good because worship can benefit many, but understand not all people may be interested in it

In a self-perpetuating board, new members are selected by

the existing members of the board

financial penalties that punish individuals who permit improper transgressions are called

intermediate sanctions

establishing the nonprofit’s mission is the responsibility of the organization’s

board

what legal concept states officers cannot unreasonably benefit from the orgainzation’s funds?

private inurement

An excess benefit transaction occurs when

employee compensation exceeds the value of services provided

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A nonprofit organization’s finance committee is listening to the advice of a financial expert on how to manage the organization’s investments. The board is practicing which duty?

Care

T/F governing boards have the ultimate responsibility for ensuring an organization serves its mission

True

T/F Hybrid boards have the ultimate responsibility for ensuring an organization serves its mission

True

T/F Elected boards help ensure organizations are responsive to member needs

True

T/F One responsibility of a nonprofit board member is to supervise volunteers

False

T/F The Sarbanes-Oxley Act has a provision protecting whistle-blowers

True

What is the responisbility of overseeing day-to-day operations called?

management

According to Worth, a lack of leadership by the chief executive officer will eventually lead to

drift, decline, and failure

what leadership style focuses on relationships?

transformational

to minimize risk, nonprofit boards must select a new chief executive officer based on the organization’s

mission

A leader who behaves in ways that cause others to see themselves as leaders is practicing _____ leadership

transformational

Leaders who use a political froame are

sensitive to external forces that might affect the organization

Internal preparation for executive transition is a shared responsibility of the nonprofit board and the

chief executive officer (CEO)

The founder of Habitat for Humanity found it difficult to turn management of the nonprofit over to a new chief executive officer. The founder was demonstrating _____ syndrome

founder

T/F one responsibility of a nonprofit chief executive officer is to select new members of the board of directors

False

T/F Transformational leadership primarily uses rewards or punishment to influence and change the behaviors of others

False

Which government entity grans nonprofit characters?

state

According to your textbook author, taking responsibility for one’s actions is being

accountable

Which term below involves comparisons between or among organizations?

benchmarking

Private organizations that evaluate the performance of nonprofit organizations are called charity

watchdogs

the leader of a nonprofit organization is comparing the costs of conducting a fund-raising event to the amount of funds raised. The leader is conducting a

cost-benefit analysis

T/F the 3 principle mechanisms by which nonprofits are held accountable are the rule of law, self-regulation, and transparency

True

T/F benchmarking is a way nonprofits compare themselves to similar organizations

True

T/F Nonprofit organization do not have to report unrelated business income to the Internal Revenue Service

false

The gradual evolution away from the organization’s purpose into ancillary activities is called

mission creep

the vision statement is

a description of an ideal future

one benefit of strategic planning is it helps to build a common understanding of the organizational mission. this benefit is sacrificed if

it remains a document available only to a select few in management

One benefit of strategic planning is it

provides a basis for rational decision-making

The board of directors of a nonprofit organization is holding a public listening session to associate with others sharing similar interests. The board is attempting to build capacity by

developing collaborations

T/F Strategic planning focuses on the day-to-day operations of the nonprofit

false

T/F A SWOT exercise is used to identify an organization’s strengths, weaknesses, opposition, and trends

False

T/F the mission statement explains the reason an organization exists

true

T/F A characteristic of a good objective is that it is specific

True

T/F Once a strategic plan is written, it should be used to stimulate broader discussion throughout the organization

True

National nonprofits with local chapters follow one of two principal organization forms—a single corporation or a(an):

federation

a nonprofit organization, a public organization, and a private sector organization joined forces to resolve an unmet community need. According to your textbook author, this relationship may is to as a(n)

cross-sector collaboration

a(n) _______ forms when two or more organizations combine legal control

merger

a nonprofit organization is reviewing its strategic plan to determine if it is ready to participate in a collaboration. The organization is performing atwhich stage of the relationship development process?

self-examination

T/F high-performing nonprofit organizations can have an isolated impact

true

T/F Ad hoc relationships are long term

False

T/F collaboration occurs when two or more organizations work together to achieve common objectives

True

T/F a significant obstacle to successful collaboration is organizational cultures

true

T/G government contracts with nonprofit organizations are a type of merger

false

_________ state(s) human needs progress to higher levels as the lower-level needs are met

maslow’s theory

a nonprofit organization is advertising for volunteers to distribute water bottles to runners participating in an annual marathon. What type of volunteer does the organization need?

spot

According to Worth, valunteer program managers should develop volunteer

job descriptions

an attorney is providing an outside legal opinion to a nonprofit organization’s board of directors. What type of volunteer is the attorney

expert

volunteers are best assigned to work that

does not need to be done daily

T/F federal employment laws do not apply to nonprofit staff

false

T/F nonprofit organizations may be held liable for discriminatory practices applied by outsourced suppliers

True

T/F the Myers-Briggs indicator provides individuals with insights about their own preferences

true

T/F one way to effectively manage volunteers is to be aware of what motivates them

true

T/F A person who is mandated to volunteer is a marginal volunteer

true

A ______ mindset occurs when an organization focuses on providing products that are responsive to customers’ needs

target-audience

the author defines ____ as an exchange of information

communication

Coca-Cola and the World Wildlife Fund created a fundraising partnership to support efforts to save polar bears. This partnership is an example of _______ marketing

cause

what are measures of age, gender, race, income, and geography called

price discrimination

a brand ______ describes customers’ expectations

promise

a nonprofit organization is taking steps to ensure its marketing and communication messages align. What term describes this action?

integrated marketing communication

a chief executive officer (CEO) is participating in an interview about a nonprofit organization. A local radio station is conducting the interview. The CEO is communicating with the _______ public

external

one nonprofit organization offers better services than another nonprofit and charges clients the same amount. This situation is an example of ________ pricing

competitive

when you walk into an american red cross office, you expect to receive some type of emergency assistance. you developed your expectations based on the __________ of the american red cross

brand image

according to Worth, _______ have been at the forefront of every significant social change in the United States

noprofit organizations

members of a nonprofit organization are encouraging people in their community to vote in support of a local referendum. The term that describes their activity is

direct lobbying

daniel is writing a letter to the editor of the local newspaper. He is encouraging citizens to join him in expressing support of city funds going to a local nonprofit organization. Daniel is

advocating

a _______ ommittee is permitted to engage in partisan political activity

politi al action

political action committees are classified under which section of the Internal Revenue Service Code?

section 527

the board of directors of a nonprofit organization is studying the platforms of state legislators to identify politicians who may favor the nonprofit
s mission. The board is applying which best practice of program advocacy?

understanding the legieslative process

which type of nonprofit organization is permitted to lobby without limitation

social welfare

nonprofits often play a critical role in creating

social change

T/F a plitical action committee may claim tax-deductible gifts

false

T/F One reason nonprofit organizations may be ambivalent about lobbying is that they fear alienating donors

true

which type of funds need to be invested in perpetuity

pure endowment

account on a(n) _______ basis counts money earned as well as obligations for expenditures not yet incurred

accrual

what type of financial statement provides a snapshot of an organization’s finances taken at a point in time?

financial position

an organization that is _______ possesses sufficient cash to meet its obligations as they come due

liquid

what condept of investing an endowment involves a long-term growth portfolio?

total return

a fundamental principle of _____ requires that no one person handles an entire financial transaction

internal control

according to worth, nonprofit organizations measure their success through the

financial and program results

the Brown Foundation gave a local nonprofit organization a $1 million endowment. This action is an example of what type of revenue source

philanthropic gift

T/F a board of directors may withdraw funds from a quasi-endowment

true

T/F Depreciation refers to the differences between assets and liabilties

false