Practice Test Geeks(CED) Certified Executive Director Practice Test
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Regulatory Compliance & Legal Framework Flashcards

7 cards from real CED practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Regulatory Compliance & Legal Framework flashcards as text

  1. Under the Fair Labor Standards Act (FLSA), which category of workers is entitled to overtime pay at 1.5 times their regular rate?

    Answer: Non-exempt employees working over 40 hours per week

    The FLSA requires overtime pay for non-exempt employees who work more than 40 hours in a workweek, regardless of whether they are paid hourly or salary.

  2. A 501(c)(3) organization risks losing its tax-exempt status if it:

    Answer: Engages in substantial lobbying or political campaign activities

    The IRS can revoke 501(c)(3) status if an organization engages in substantial lobbying or any political campaign intervention.

  3. An executive director is personally served with a subpoena for organizational records. The CORRECT immediate step is to:

    Answer: Consult legal counsel before responding or producing any documents

    Upon receiving a subpoena, an executive must consult legal counsel immediately to understand obligations, rights, and any grounds for objection before producing documents.

  4. The Uniform Prudent Management of Institutional Funds Act (UPMIFA) primarily governs:

    Answer: Investment and spending of endowment funds by charitable organizations

    UPMIFA provides guidance for nonprofits on prudent investment and spending of endowment and institutional funds.

  5. Title IX of the Education Amendments of 1972 prohibits discrimination based on sex in:

    Answer: Educational programs or activities receiving federal financial assistance

    Title IX prohibits sex-based discrimination in any educational program or activity that receives federal financial assistance.

  6. Which document establishes the foundational legal structure and purpose of a nonprofit corporation?

    Answer: Articles of Incorporation

    The Articles of Incorporation are the foundational legal document filed with the state that creates a nonprofit corporation and establishes its basic structure and purpose.

  7. Under ERISA, fiduciaries of employee benefit plans are required to act:

    Answer: Solely in the interest of plan participants and beneficiaries

    ERISA imposes a fiduciary duty requiring plan managers to act solely in the interest of plan participants and beneficiaries, not the employer.