Practice Test Geeks(CNC) Certified Nonprofit Consultant Practice Test
← All CNC Flashcard Decks

501(c)(3) Governance & Bylaws Flashcards

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

Read the first 7 501(c)(3) Governance & Bylaws flashcards as text

  1. Under the duty of care, a nonprofit board member is expected to act with the care of a:

    Answer: Ordinarily prudent person in a similar position under similar circumstances

    The duty of care requires board members to act as an ordinarily prudent person would in a similar role and circumstances.

  2. What is 'quorum' in the context of nonprofit board meetings?

    Answer: The minimum number of board members required to conduct official business

    A quorum is the minimum number of board members who must be present for the board to legally conduct business and take official action.

  3. Which IRS form must most 501(c)(3) organizations file annually to maintain tax-exempt status?

    Answer: Form 990

    Form 990 (or 990-EZ or 990-N depending on size) is the annual information return required by the IRS to maintain 501(c)(3) status.

  4. A nonprofit's bylaws typically specify the process for which of the following?

    Answer: Electing and removing board members

    Bylaws govern internal organizational procedures including how board members are elected, their terms, and removal processes.

  5. Which of the following best describes the role of a nonprofit's executive committee?

    Answer: A board subgroup authorized to act on behalf of the full board between meetings

    An executive committee is typically a subset of the board empowered to handle urgent matters when the full board cannot convene.

  6. What must a 501(c)(3) organization do if it wants to significantly change its mission?

    Answer: File an amendment with the IRS and potentially update its Articles of Incorporation

    Significant mission changes may require amending the Articles of Incorporation and notifying the IRS, since the organization's tax-exempt purpose is tied to its stated mission.

  7. The 'duty of loyalty' requires nonprofit board members to:

    Answer: Prioritize the organization's interests over personal or third-party interests

    The duty of loyalty requires board members to put the organization's best interests first and avoid self-dealing or conflicts of interest.