CED Regulatory Compliance & Legal Framework 3

Question 1

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

Accepted Answer

Non-exempt employees working over 40 hours per week

Answer

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.

Question 2

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

Accepted Answer

Engages in substantial lobbying or political campaign activities

Answer

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

Question 3

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

Accepted Answer

Consult legal counsel before responding or producing any documents

Answer

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

Question 4

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

Accepted Answer

Investment and spending of endowment funds by charitable organizations

Answer

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

Question 5

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

Accepted Answer

Educational programs or activities receiving federal financial assistance

Answer

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

(CED) Certified Executive Director Practice Test

(CED) Certified Executive Director Practice Test

CED Regulatory Compliance & Legal Framework 3