Question 1

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

Accepted Answer

The increased demand for measurable results has created a need for effective management in nonprofit organizations to ensure they are meeting their desired outcomes efficiently and effectively. Empowered customers and voucher-type payments are not directly related to this increased demand. Funding to state governments may be a source of revenue for nonprofits but does not directly address the need for better management.

Question 2

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

Accepted Answer

The shift in thinking about nonprofits emphasizes building the strength of organizations themselves, rather than simply focusing on financial metrics or individual salaries. This means investing in infrastructure, staff development, and long-term planning to ensure that the nonprofit is able to effectively achieve its mission in the long run. Hiring managers with MBAs or increasing their salaries may be a part of this process, but they are not the primary focus.

Question 3

This organization was founded in 1970 and began to accredit public administration degree programs.
A) The Commission on Private Philanthropy and Public Needs
B) The Yale Program on Nonprofit Organizations
C) The National Association of Schools of Public Affairs and Administration
D) The Nonprofit Academic Centers Council

Accepted Answer

The National Association of Schools of Public Affairs and Administration (NASPAA) was founded in 1970 and is responsible for accrediting public administration degree programs. The Commission on Private Philanthropy and Public Needs was founded in 1973 to study the relationship between philanthropy and public needs, the Yale Program on Nonprofit Organizations was founded in 1980 to provide education and research on nonprofit organizations, and the Nonprofit Academic Centers Council was founded in 2001 to promote academic excellence in nonprofit education and research.

Question 4

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

Accepted Answer

Nonprofit organizations exist to achieve a particular mission, and success should be measured by their ability to achieve that mission rather than just increasing resources or managing staff. Meeting the financial bottom line is important for sustainability, but it should not be the only measure of success for a nonprofit organization.

Question 5

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

Accepted Answer

The question states that the job of a nonprofit manager is complex and can involve multiple pressures, which can lead to frustration and burnout. There is no mention of enrolling in professional management courses, earning six-figure salaries, or receiving honorary degrees. Therefore, the best choice is B, frustration and burnout.

Question 6

Concomitant 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) Educational programs related to nonprofit management
C) Academic journals that specialized in nonprofit management
D) Competition for philanthropic missions by for-profits

Accepted Answer

Educational programs related to nonprofit management grew rapidly alongside the increase in nonprofit management literature during the 1990s and 2000s.

Question 7

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

Accepted Answer

Nonprofits typically obtain revenue from a variety of sources, such as grants, donations, fundraising events, membership dues, and the sale of goods and services. While government contracts, corporate sponsors, and the sale of products and services can be sources of revenue for nonprofits, relying on only one source can be risky and may not provide enough funding to sustain the organization's mission in the long term. Therefore, nonprofits often diversify their revenue streams to increase financial stability and flexibility.

Question 8

Nonprofit management literature is drawn from which of the three areas?
A) Social science research, customer complaints, and reports prepared by practitioners
B) Social science research, organizational theory, and community feedback
C) Internal Revenue Service financial reports, organizational, theory, and social science research
D) Social science research, organizational theory, and practitioner reports

Accepted Answer

The answer of Nonprofit management literature is drawn from which...

Question 9

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

Accepted Answer

There is no empirical evidence to suggest that nonprofits are less well managed than businesses. While there may be certain challenges unique to managing nonprofits, it is unfair to make broad generalizations about their management capabilities without proper research and data. Therefore, the perception that nonprofits are less well managed than businesses is a myth.

Question 10

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

Accepted Answer

Throughout most of the history of management as a recognized discipline, most theorists have argued that common management principles would apply equally to all organizations, regardless of industry or sector. This idea is based on the assumption that management is a universal process that can be applied to any organization, regardless of differences in their structure or goals. While there may be some variations in how management principles are applied in different contexts, the basic principles remain the same.

Question 11

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

Accepted Answer

Nonprofit organizations are expected to serve the public good and address social issues. As a result, nonprofit managers must see themselves as stewards of their organization and servants of society. Unlike for-profit organizations, nonprofits are not designed to earn a profit or reward shareholders. Instead, nonprofit managers must focus on the organization’s mission and the needs of their stakeholders. Therefore, option B is the best choice.

Question 12

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 1960s.
B) The 1970s.
C) The 1980s.
D) The 1990s

Accepted Answer

The 1980s marked a significant shift towards government outsourcing of social and human services to nonprofits, which resulted in the increased need for professional management in these organizations. This trend continued into the 1990s, making it a pivotal decade for the nonprofit sector.

Question 13

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

Accepted Answer

According to Higgins, nonprofit organizations have board and staff members with different goals and agendas, which can sometimes create tension and conflict within the organization. While nonprofits may also have volunteers and constituents with varying levels of understanding or perspectives, the statement specifically mentions board and staff members as having different goals and agendas.

Question 14

The beginning of management as a field of study dates approximately to the:
A) late 19th century.
B) early 18th century.
C) 1960s.
D) 1980s.

Accepted Answer

The beginning of management as a field of study dates back to the late 19th century, when modern management theories started to emerge.

Question 15

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

Accepted Answer

The introduction of competition resulting from changes in funding patterns, growth of the sector, and increasing demands for accountability has been a major driving force behind the nonprofit management revolution. This has led to organizations needing to become more efficient and effective in how they operate and manage their resources in order to compete for funding and meet the demands of stakeholders.

Question 16

Most small businesses:
A) are better managed than most nonprofits.
B) are more successful than most nonprofits.
C) eventually evolve into corporations.
D) fail within the first five years of their existence.

Accepted Answer

According to statistics, a significant percentage of small businesses fail within the first five years of their existence. While this is not true for all small businesses, it is a common trend. Therefore, option D is the best choice.

Question 17

The double bottom line concept means CEOs must:
A) meet organizational goals and objects.
B) achieve the mission within financial means.
C) be accountable to their donors and the Internal Revenue Service.
D) increase the value of the business and the wealth of its owners.

Accepted Answer

The double bottom line concept refers to a company's responsibility to both achieve its mission and objectives while also doing so within its financial means. This means that CEOs must prioritize both the social impact and financial profitability of the company. Therefore, the best answer is B.

Question 18

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

Accepted Answer

Herman states that one of the differences between managing a nonprofit and a for-profit corporation is that nonprofit decisions must be consistent with the mission and ethical values of the organization. This is because nonprofits are typically driven by a social or environmental purpose rather than a profit motive.

Question 19

The nation's first school of management was the:
A) Mandel Center for Nonprofit Organizations at Case Western Reserve University.
B) Wharton School at the University of Pennsylvania.
C) Yale Program on Nonprofit Organizations.
D) Center on Philanthropy at Indiana University.

Accepted Answer

The Wharton School at the University of Pennsylvania was the nation's first school of management, founded in 1881 under the name of the Wharton School of Finance and Economy.

Question 20

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) dramatic growth of organizations.
B) trained managers.
C) philanthropic contributions.
D) long-term investments in nonprofits.

Accepted Answer

As demand for accountability and regulation increases, the need for trained managers who can implement and navigate these systems and procedures also increases. This may lead to increased investment in training and development of nonprofit staff members who can handle these tasks effectively. However, it does not necessarily require dramatic growth in organizations, philanthropic contributions, or long-term investments.

Quiz 1: Nonprofit Management As a Profession and a Field of Study

The requirement that nonprofits meet the expectations for measurable results has increased the need for:

There has been a shift in thinking about nonprofits that emphasizes:

This organization was founded in 1970 and began to accredit public administration degree programs.

Managers of nonprofit organizations must measure their success by:

The complexity of the nonprofit manager's job and the multiple pressures inherent in the job frequently result in:

Concomitant with the increase in nonprofit management literature in the 1990s and 2000s, what also grew rapidly?

Most nonprofits obtain revenue from:

Nonprofit management literature is drawn from which of the three areas?

The perception that nonprofits are less well managed than businesses is:

Throughout most of the history of management as a recognized discipline, most theorists have:

Those who view nonprofit organizations primarily as social institutions portray nonprofit managers as:

According to Higgins, nonprofit organizations have:

The beginning of management as a field of study dates approximately to the:

One overarching force that has driven the nonprofit management revolution of recent decades has been:

Most small businesses:

The double bottom line concept means CEOs must:

According to Herman, one of the differences of managing a nonprofit versus a for-profit corporation is:

The nation's first school of management was the:

Demands for accountability and the need for systems and procedures to comply with greater scrutiny and regulation also have contributed to the need for: