Deck 4: Nonprofit Governing Boards

Question 1

In 2009, the Internal Revenue Service revised which form to be a financial and governance report?

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

Answer 1

D

Question 2

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

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

Answer 2

B

Question 3

According to Worth, today's boards are expected to raise money and ______.

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

Answer 3

B

Question 4

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

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

Question 5

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

A) board
B) shareholders
C) marketing department
D) the chief executive officer

Question 6

Which board responsibility requires the MOST effort?

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

Question 7

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

A) a randomly selected individual
B) the highest ranking officer in the organization
C) an individual appointed by the most senior member of the board
D) an unappointed individual who holds the seat by virtue of their position

Question 8

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

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

Question 9

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

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

Question 10

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

Question 11

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

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

Question 12

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

A) BoardSource
B) Independent Sector
C) Smithsonian Institution
D) Internal Revenue Service

Question 13

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

A) policies
B) advisory groups
C) management positions
D) performance evaluations

Question 14

Which type of board is commonly found in public organizations?

A) elected
B) advisory
C) appointed
D) self-perpetuating

Question 15

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

Question 16

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

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

Question 17

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

A) implementation of new programs
B) stewardship of the organization's assets
C) achievement of the organization's long-term goals
D) evaluating the chief executive officer's performance

Question 18

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

A) board
B) members
C) chief executive officer
D) human resources department

Question 19

An excess benefit transaction occurs when ______.

A) a service contract exceeds financial limits
B) an organization exceeds its fundraising goals
C) an organization goes above and beyond to meet its mission
D) employee compensation exceeds the value of services provided

Question 20

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

A) decisions and core values
B) direction and its financial goals
C) volunteers and members of the board
D) governance duties and organizational priorities

Question 21

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) care
B) loyalty
C) obedience
D) investment

Question 22

The board responsibility of "obedience" means the board's members need to do what the chief executive officer asks them to do.

Question 23

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

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

Question 24

A board governs the nonprofit organization, while the chief executive officer manages the organization.

Question 25

Another name for a nominating committee is a/an ______.
A. naming committee
B. ad hoc committee
C. governance committee
D. stewardship committee

Question 26

Chait writes that nonprofit boards should manage the organizations they serve.

Question 27

Hybrid boards have elected and appointed members.

Question 28

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

Question 29

The Sarbanes-Oxley Act has a provision protecting whistle-blowers.

Question 30

Governing boards have the ultimate responsibility for ensuring an organization serves its mission.

Question 31

Nonprofits file a Form 990 with the Internal Revenue Service when their annual revenues exceed $100,000.

Question 32

Advisory councils have no legal responsibilities within a nonprofit organization.

Question 33

Self-perpetuating board members are elected by the organization's membership.

Question 34

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) strategic
B) fiduciary
C) evaluation
D) generative

Question 35

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

Question 36

A lawyer retired from a law firm and then volunteered to oversee a nonprofit's legal records. The lawyer is performing the duties of a ______.

A) bookkeeper
B) corporate clerk
C) sergeant-at-arms
D) corporate secretary

Question 37

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) loyalty
C) obedience
D) investment

Question 38

One responsibility of a nonprofit board member is to supervise volunteers.

Question 39

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

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

Question 40

The Panel on the Nonprofit Sector issues reports recommending practices similar to those outlined in the Sarbanes-Oxley Act.

Question 41

Differentiate between the roles of a nonprofit board chair, governance committee, and board professionals.

Question 42

Draw a diagram of Bradshaw's five board configurations.

Question 43

Select a nonprofit organization and apply the four areas of Carver's model of policy governance regarding the development and maintenance of policies.

Question 44

Examine the provisions of the Sarbanes-Oxley Act that apply to nonprofit organizations.

Question 45

Outline the pros and cons of a nonprofit organization electing its board members. Discuss the challenges a chief executive officer in such an organization might face.

Question 46

Identify and examine the six behaviors that Herman and Heimovics observed among the effective, board-centered executives they studied.

Question 47

Give an example of a conflict of interest that may occur within a nonprofit organization. Explain how a well-managed organization might handle such a conflict.

Question 48

Examine the three legal duties of a nonprofit board.

Question 49

Analyze policies requiring board member participation in fundraising.

Question 50

Compare and contrast the various types of boards discussed in Chapter 4.