Question 1

Who wrote "Bowling Alone: America's Declining Social Capital" to discuss the decline in civic engagement among Americans?
A) Bill Gates
B) Robert Putnam
C) Lester Salamon
D) Michael Moore

Accepted Answer

Robert Putnam wrote "Bowling Alone: America's Declining Social Capital" to discuss the decline in civic engagement among Americans.

Question 2

What were the total combined assets of all nonprofits in 2013?
A) $500 million
B) $200 billion
C) $800 billion
D) $3.22 trillion

Accepted Answer

In 2013, the total combined assets of all nonprofits were approximately $3.22 trillion, reflecting the vast scale and economic impact of the nonprofit sector.

Question 3

What is the Internal Revenue Service classification for nonprofits organizations that work for social change?
A) cultural
B) religious
C) advocacy
D) environmental

Accepted Answer

Nonprofits that work for social change are typically classified as "advocacy" organizations by the Internal Revenue Service. This includes organizations that seek to promote specific causes or policies, such as civil rights, environmental protection, or healthcare reform. Nonprofits that primarily engage in cultural or religious activities would be classified as such, while those that focus on environmental issues would be classified as "environmental."

Question 4

If measured by the total number of organizations, the largest subsector of charitable nonprofits is the ______.
A) religious
B) health services
C) human service
D) international and foreign affairs

Accepted Answer

The human service subsector is the largest in terms of the total number of organizations. This includes a wide range of services such as child care, food banks, homeless shelters, and various support services for those in need.

Question 5

In 2013, the nonprofit sector employed what percentage of the total U.S. workforce?
A) 5%
B) 10%
C) 20%
D) 30%

Accepted Answer

According to data from the Bureau of Labor Statistics in 2013, the nonprofit sector employed approximately 10% of the total U.S. workforce.

Question 6

If measured by total revenue, which subsector of charitable nonprofits is the largest?
A) religious
B) health services
C) human services
D) international and foreign affairs

Accepted Answer

According to the National Center for Charitable Statistics, in 2016, health services was the subsector of charitable nonprofits with the highest total revenue, which was $2.9 trillion. The other options, religious ($126.8 billion), human services ($190.8 billion), and international and foreign affairs ($24.9 billion), have significantly lower total revenues compared to health services.

Question 7

What term identifies organizations that do not have to pay federal income taxes?
A) public
B) private
C) tax-exempt
D) income-exempt

Accepted Answer

Tax-exempt organizations are those that do not have to pay federal income taxes. Public and private can both refer to types of organizations, but do not necessarily indicate tax status. Income-exempt is not a commonly used term.

Question 8

What term is defined as "giving for the alleviation of human suffering?"
A) charity
B) voluntarism
C) philanthropy
D) nonprofitism

Accepted Answer

Charity is defined as giving for the alleviation of human suffering, focusing on immediate relief and support for those in need.

Question 9

A nonprofit organization that blends traditional fundraising methods with commercial methods to generate revenue is referred to as a ______.
A) civil society
B) charitable sector
C) social enterprise
D) tax-exempt sector

Accepted Answer

A social enterprise is a nonprofit organization that uses commercial methods to generate revenue, while also fulfilling its social mission. It blends traditional fundraising methods, such as donations and grants, with commercial methods, such as selling products or services.

Question 10

Organizations that operate under both nonprofit and for-profit legal forms are referred to as ______ organizations.
A) hybrid
B) social sector
C) civil service
D) voluntary sector

Accepted Answer

Organizations that operate under both nonprofit and for-profit legal forms are commonly referred to as hybrid organizations.

Question 11

How much of the revenue for charitable nonprofits comes from government funds?
A) one half
B) one third
C) two fourths
D) three fourths

Accepted Answer

One third of the revenue for charitable nonprofits comes from government funds. This includes grants and contracts from local, state, and federal government sources.

Question 12

A nonprofit that qualifies under Section 501(c)(3) must limit its expenditures on ______.
A) lobbying 
B) health care
C) staff salaries
D) legal counsel

Accepted Answer

Nonprofits that qualify under Section 501(c)(3) are tax-exempt organizations, which means they cannot engage in any substantial lobbying activities. They may engage in some lobbying activities as long as it does not comprise a substantial part of their overall activities and expenditures. However, if a nonprofit engages in excessive lobbying or violates the lobbying restrictions, it may lose its tax-exempt status. Therefore, option A is the correct answer.

Question 13

What benefit created by the U.S. Congress is intended to encourage charitable giving?
A) income tax deductions for gifts
B) removal of limitations on lobbying
C) receiving a 501(c)(1) classification
D) receiving free health-care vouchers in exchange for gifts

Accepted Answer

The income tax deductions for gifts created by the U.S. Congress is intended to encourage charitable giving. Taxpayers can deduct the amount of their charitable contributions from their taxable income, which incentivizes them to donate to charitable organizations.

Question 14

The number of tax-exempt nonprofits operating in the United States in 2016 was approximately ______.
A) 1.5 million
B) 2.6 million
C) 3.5 million
D) 5.2 million

Accepted Answer

In 2016, there were approximately 1.5 million tax-exempt nonprofit organizations operating in the United States.

Question 15

What principle prevents government funds from going directly to religious congregations?
A) tax-exempt provisions
B) the nondistribution test
C) charitable choice provisions
D) separation of church and state

Accepted Answer

The separation of church and state principle prevents government funds from going directly to religious congregations. This principle is enshrined in the First Amendment to the U.S. Constitution, which prohibits the government from establishing a state religion or interfering with the free exercise of religion. As a result, government funds cannot be used to directly support religious institutions or activities.

Question 16

A certain mistrust of ______ has provided philosophical support for voluntary initiatives throughout the history of the United States.
A) lawyers
B) academia
C) volunteers
D) government

Accepted Answer

The given statement suggests that there has been a mistrust of the government in the United States, which has supported voluntary initiatives. Hence, the correct choice is D) government.

Question 17

The National Taxonomy of Exempt Entities divides nonprofit organizations into categories based on their ______.
A) budgets and staffs
B) types of clients served
C) purposes and activities
D) mission and vision statements

Accepted Answer

The National Taxonomy of Exempt Entities divides nonprofit organizations into categories based on their purposes and activities. This is done to ensure consistency and accuracy in the reporting and classification of nonprofit organizations for regulatory and research purposes.

Question 18

Organizations that exist for the sole purpose of directing money to other nonprofits are called ______.
A) banks
B) funding intermediaries
C) advocacy organizations
D) international development entities

Accepted Answer

Funding intermediaries exist solely to provide financial support and resources to other nonprofits. Banks, advocacy organizations, and international development entities may support nonprofits, but this is not their primary purpose.

Question 19

Which type of charitable nonprofit organizations is the least professionalized?
A) religious
B) advocacy
C) environmental
D) arts and culture

Accepted Answer

Religious nonprofit organizations typically have less professionalization than other types of nonprofits. This is because they often rely heavily on volunteers and do not have the same level of public scrutiny and accountability as other types of nonprofits.

Question 20

Private foundations are usually funded by ______.
A) the U.S. Congress
B) a single donor
C) community organizations
D) a vast number of corporate sponsors

Accepted Answer

Private foundations are usually funded by a single donor or a family, who establishes a charitable trust or foundation and contributes the initial funds.

Quiz 2: Overview of the Nonprofit Sector

Who wrote "Bowling Alone: America's Declining Social Capital" to discuss the decline in civic engagement among Americans?

What were the total combined assets of all nonprofits in 2013?

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

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

In 2013, the nonprofit sector employed what percentage of the total U.S. workforce?

If measured by total revenue, which subsector of charitable nonprofits is the largest?

What term identifies organizations that do not have to pay federal income taxes?

What term is defined as "giving for the alleviation of human suffering?"

A nonprofit organization that blends traditional fundraising methods with commercial methods to generate revenue is referred to as a ______.

Organizations that operate under both nonprofit and for-profit legal forms are referred to as ______ organizations.

How much of the revenue for charitable nonprofits comes from government funds?

A nonprofit that qualifies under Section 501(c) (3) must limit its expenditures on ______.

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

The number of tax-exempt nonprofits operating in the United States in 2016 was approximately ______.

What principle prevents government funds from going directly to religious congregations?

A certain mistrust of ______ has provided philosophical support for voluntary initiatives throughout the history of the United States.

The National Taxonomy of Exempt Entities divides nonprofit organizations into categories based on their ______.

Organizations that exist for the sole purpose of directing money to other nonprofits are called ______.

Which type of charitable nonprofit organizations is the least professionalized?

Private foundations are usually funded by ______.