Question 1

In nonprofits provide services and resources that corporations need for their business operations, but they also provide opportunities for companies to achieve a social benefit with resources that are outside their philanthropic or marketing budgets.

Accepted Answer

Operational relationships refer to collaborations where nonprofits provide services and resources that corporations need for their business operations, while also allowing companies to achieve social benefits.

Question 2

In a , the company pays for the use of its name or logo in connection with the nonprofit's products or events.

Accepted Answer

This describes a sponsorship. A licensing agreement is when the nonprofit pays to use the company's intellectual property. A corporate agreement is too broad and could refer to any agreement between a company and a nonprofit. A joint venture involves the sharing of resources and risks between two entities, which does not fit the described scenario.

Question 3

A detailed, comprehensive document that encompasses elements of strategic, marketing, business, and operational plans organization is called a:

Accepted Answer

A business plan is a detailed, comprehensive document that includes strategic, marketing, business, and operational plans for an organization. It outlines the goals and objectives of the organization, as well as the strategies and tactics to achieve them. A feasibility analysis is a preliminary assessment of the viability of a business idea, while a market analysis focuses on analyzing the market and competition. A sensitivity analysis is a financial modeling tool that assesses the impact of changes in assumptions on the financial projections of a business.

Question 4

ties the nonprofit's income directly to the number or amount of total sales made by the corporate partner and thus represents a true partnership in which the interests of both partners are aligned.

Accepted Answer

Cause marketing involves a partnership between a nonprofit organization and a for-profit company where the company donates a portion of its profits or sales to the nonprofit organization. This ties the nonprofit's income directly to the number or amount of total sales made by the corporate partner, creating a true partnership where both parties benefit.

Question 5

This is an arrangement under which the company contributes either a fixed amount for each sale of a product or a specified percentage of its sales of a product to the nonprofit, usually in connection with a short-term promotion.

Accepted Answer

This description matches the definition of cause marketing, where a company contributes a portion of its sales to a nonprofit in connection with a short-term promotion. Corporate partnership and joint venture involve longer-term collaborations between two entities, while promotion-based venture is not a commonly used term in this context.

Question 6

This is a contract that permits a for-profit company to use the nonprofit's name or logo on its products in return for a royalty payment to the nonprofit.

Accepted Answer

A licensing agreement is a legally binding contract between two parties in which one party grants permission to the other party to use their intellectual property, such as a name, logo, or trademark, for commercial or non-commercial purposes. In this case, the nonprofit is granting permission for the for-profit company to use its name or logo on its products in exchange for a royalty payment.

Question 7

The nonprofit's principal contribution to the partnership is its name, recognition, and reputation, for which the corporation is willing to pay in order to enhance its own visibility, image, and sales. Such relationships are largely an exchange of:

Accepted Answer

The nonprofit's contribution to the partnership is intangible in nature, namely its name, recognition, and reputation. The corporation is willing to pay for these intangible assets in order to enhance its own visibility, image, and sales. Therefore, the partnership is largely an exchange of intangibles.

Question 8

The board of a nonprofit organization is studying data retrieved from a feasibility study to determine if there is a marketplace demand for a new service. The board is looking at which part of the organization's business plan?

Accepted Answer

The board is looking at market analysis, which is a component of a business plan that involves researching and evaluating the demand for a particular product or service in the marketplace. Sensitivity analysis involves examining how changes in certain variables (such as pricing or costs) would affect the organization's financial performance, while proforma statements are financial projections that show how the organization expects to perform in the future based on assumptions and estimates. Sponsorship refers to financial support from external sources, which may be part of a nonprofit's fundraising strategy but is not directly related to determining market demand.

Question 9

are corporations that are engaged in cause marketing.

Accepted Answer

Corporations engaged in cause marketing are typically referred to as commercial co-venturers. These are companies that partner with a nonprofit organization and pledge a certain percentage of their profits from a particular product or service to be donated to the partnering nonprofit. This is a form of cause marketing, where a for-profit company aligns itself with a charitable cause to help promote its own products or services while also generating positive social impact. Joint ventures, partners, and promoters are not specific terms related to cause marketing.

Question 10

A nonprofit organization considering selling a product is evaluating the marketplace for competitors. This is an example of exploring:

Accepted Answer

Exploring the marketplace for competitors falls under examining the external environment, which pertains to factors outside the organization that may have an impact on its success, such as competitors, customers, suppliers, and overall industry trends.

Question 11

Corporate sponsorships offer nonprofits the benefits of added revenue and through the company's promotion of the relationship.

Accepted Answer

Corporate sponsorships typically offer nonprofits increased visibility through promotion of the relationship, which can lead to more exposure and support for the nonprofit's cause.

Question 12

Careful business plans will include a(an) that shows how projected results will vary if the assumptions are wrong by some percentage.

Accepted Answer

A sensitivity analysis is a tool used to help businesses understand how variations or changes in assumptions can affect the outcome of a project, decision or investment. It provides a range of possible outcomes based on different levels of input. Therefore, a careful business plan should include a sensitivity analysis to help anticipate variability in projected outcomes based on changing assumptions. Market analysis, feasibility analysis, and assets analysis are all important components of a business plan, but they do not specifically address variations in assumptions.

Question 13

These are new initiatives undertaken jointly by two entities and may involve a specific activity or the creation of a new entity jointly owned by the two partners.

Accepted Answer

Joint ventures involve two entities coming together to undertake a specific activity or create a new entity jointly owned by the two partners. Corporate partnerships may involve joint initiatives, but they are not necessarily joint ownership arrangements. Nonprofit enterprise and nonprofit business ventures are not relevant to this type of partnership.

Question 14

Critics of earned income do not always acknowledge that of nonprofit business ventures providing human and social services are "directly or closely related to their missions."

Accepted Answer

According to the sentence, critics do not always acknowledge that nonprofit business ventures providing human and social services are "directly or closely related to their missions." Therefore, it can be inferred that the vast majority (90 percent) of these ventures are indeed closely related to their missions.

Question 15

The watershed event for nonprofit-corporate partnerships came in 1983, when supported renovation of the Statue of Liberty by offering to contribute a penny to the campaign each time a consumer used his or her credit card from this company.

Accepted Answer

This is because the event described is the renovation of the Statue of Liberty and the offer to contribute a penny for each credit card transaction. American Express was the company that made this offer in 1983.

Question 16

According to Young, a business venture is worth pursuing if:

Accepted Answer

According to the article, a business venture is worth pursuing if it supports the mission of the nonprofit organization.

Question 17

This is income from payment for goods or services that the nonprofit has provided.

Accepted Answer

Earned income is income that a nonprofit earns from providing goods or services to customers or clients. This can include income from selling merchandise or providing services such as consulting or educational programs. This type of income is taxable and subject to unrelated business income tax (UBIT) if it is not related to the organization's exempt purpose.

Question 18

Most business plans begin with a(an) that gives a thorough but succinct overview of the major points made in the following sections of the plan.

Accepted Answer

An executive summary is a brief overview of the entire business plan. It includes the most important sections and highlights the main points made throughout the plan. This section is usually the first thing that potential investors or lenders will read, and it should be written in a way that quickly and clearly communicates why the business is worth investing in.

Question 19

Successful partnerships have logic to them, and a nonprofit seeking a corporate sponsor needs to think in terms of the company's:

Accepted Answer

When seeking a corporate sponsor, it is important for a nonprofit to think in terms of the company's interests and goals. A successful partnership should benefit both parties and align with their respective missions and objectives. Thinking about the company's financial portfolio may also be relevant in negotiations, but ultimately the focus should be on creating value for both the nonprofit and the sponsor. The dress policy and health benefits of the company or their popularity among staff and volunteers are not directly relevant to the partnership.

Question 20

According to Wei-Skillern, if the level of earned income is small it may be considered:

Accepted Answer

The answer of According to Wei-Skillern, if the level of...

Quiz 14: Earned Income Strategies