Deck 2: Overview of the Nonprofit Sector

Question 1

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) religious organizations.
B) environmental organizations.
C) arts and culture organizations.
D) advocacy organizations.

Answer 1

D

Question 2

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

A) Banks
B) International development entities
C) Funding intermediaries
D) Advocacy organizations

Answer 2

C

Question 3

Whose article "Bowling Alone: America's Declining Social Capital" discussed a decline in civic engagement among Americans?

A) Michael Moore
B) Bill Gates
C) Robert Putnam
D) Lester Salamon

Answer 3

C

Question 4

Which subsector of charitable nonprofits is the least professionalized?

A) Environmental organizations
B) Advocacy organizations
C) Religious organizations
D) Arts and culture organizations

Question 5

Almost of the revenue of charitable nonprofits comes from government grants and payments for services under programs such as Medicare and Medicaid.

A) one-fourth
B) one-third
C) one-half
D) three-fourths

Question 6

In 2009, the nonprofit sector employed what percentage of the total workforce?

A) 5 percent
B) 20 percent
C) 30 percent
D) 10 percent

Question 7

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) Health services sector
B) Human service sector
C) International and foreign affairs sector
D) Religious sector

Question 8

The number of nonprofits operating in the United States today is approximately:

A) 3.5 million.
B) 1.9 million.
C) 5.2 million.
D) 2.6 million.

Question 9

What were the total combined assets of all nonprofits in 2008?

A) $500 million
B) $20 billion
C) $4.3 trillion
D) $800 billion

Question 10

The National Taxonomy of Exempt Entities (NTEE) divides nonprofit organizations into categories based on the organization's:

A) purposes, activities, and programs.
B) budget and staff.
C) mission and vision statements.
D) type of clients served.

Question 11

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

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

Question 12

What is defined as giving intended to meet current individual human needs or to alleviate current human suffering?

A) Philanthropy
B) Voluntarism
C) Nonprofitism
D) Charity

Question 13

There are an increasing number of organizations that operate under both nonprofit and for-profit legal forms that are often referred to as:

A) hybrid organizations.
B) social sector organizations.
C) voluntary sector organizations.
D) civil service organizations.

Question 14

What term is used to identify organizations that do not have to pay federal, state, or local income taxes?

A) Tax-exempt
B) Public
C) Private
D) Income-exempt

Question 15

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

A) staff salaries.
B) lobbying.
C) health care.
D) legal counsel.

Question 16

Which term is defined as nonprofits that have a social objective but blend traditional nonprofit methods and commercial principles in their generation of revenue?

A) Charitable sector
B) Social enterprise
C) Tax-exempt sector
D) Civil society

Question 17

Whose 1889 essay, titled "The Gospel of Wealth," remains a classic statement of the philosophy underpinning the American tradition of philanthropy?

A) John D. Rockefeller
B) Warren Buffet
C) Andrew Carnegie
D) Theodore Roosevelt

Question 18

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

A) Being classified as a 501 (c)(3) organization
B) Receiving free health care vouchers in exchange for gifts
C) The lifting of limitations on lobbying
D) Tax deductions for gifts

Question 19

A certain mistrust of this 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) Government
B) Volunteers
C) Lawyers
D) Universities

Question 20

This 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) Tax-exempt provisions
D) The nondistribution test

Question 21

Some believe that commercialization of the nonprofit sector may result in profit being placed ahead of mission.

Question 22

Salamon's Anatomy classifies nonprofit organizations by:

A) who receives the principal benefit of their activities.
B) the nature of their activities.
C) the amount of revenue received in a fiscal year.
D) whether they are eligible to receive tax-exempt gifts.

Question 23

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

A) fund-raising.
B) providing direct services.
C) lobbying.
D) international exchange programs.

Question 24

Beginning in the 1980s, federal spending for many social programs was sharply reduced under President Gerald R. Ford.

Question 25

Private foundations most often are funded by:

A) a vast number of corporate sponsors.
B) a single donor or a small number of donors.
C) U.S. Congress.
D) community organizations.

Question 26

In the social enterprise spectrum described by Dees and colleagues, which type of organization uses only volunteers for its workforce?

A) Purely philanthropic
B) Purely commercial
C) Purely charitable
D) Purely public

Question 27

A nonprofit classified as 501 (c)(3) cannot support candidates for public office and must limit its expenditures on lobbying.

Question 28

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

Question 29

The two extreme spectrums that define a social enterprise are purely philanthropic and:

A) purely charitable.
B) purely commercial.
C) purely hybrid.
D) purely foundational.

Question 30

Giving intended to meet current individual human needs or to alleviate current human suffering is referred to as charity.

Question 31

Nonprofit organizations interested in achieving both social and economic value are referred to as:

A) commercial.
B) philanthropic.
C) charitable.
D) hybrids.

Question 32

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

Question 33

The legal foundations of America's nonprofit sector are drawn from:

A) natural law.
B) nonprofit law.
C) English law.
D) philanthropy.

Question 34

Exempt activities are those that:

A) employ only volunteers.
B) provide direct service.
C) generate income for the organization.
D) directly address a nonprofit organization's social missions.

Question 35

"The Gospel of Wealth" was written by John D. Rockefeller.

Question 36

Increased government spending on social programs in the 1960s and early 1970s began with President Lyndon B. Johnson.

Question 37

Another name for social welfare organizations is:

A) nonprofit institutions serving households.
B) advocacy organizations.
C) hybrid organizations.
D) charitable nonprofits.

Question 38

Gifts to religious congregations are tax deductible because congregations are required to register with the IRS.

Question 39

According to Sabeti a critical mass of organizations is occurring within the public, nonprofit, and private sectors creating a:

A) hybrid sector.
B) multi-purpose sector.
C) a fourth sector.
D) a new era sector.

Question 40

The National Geographic Society is a nonprofit organization that also has a for-profit subsidiary.

Question 41

Ascertain the characteristics of organizations that are purely philanthropic.

Question 42

Back up the case made for giving by Andrew Carnegie in his "Gospel of Wealth."

Question 43

Explain the three things that an organization must demonstrate to be recognized as tax-exempt under Section 501 (c)(3)?

Question 44

Select either The National Geographic Society or The Smithsonian Institution and explain the complexity of its structure as opposed to a traditional nonprofit.

Question 45

Identify and explain the three ancient traditions in which the roots of America's nonprofit sector lie.

Question 46

Compare and contrast charity and philanthropy.

Question 47

Analyze the terms "third sector, fourth sector, charitable sector, voluntary sector, independent sector, and tax-exempt sector." Explain what characteristic(s) distinguish each term.