CNC 501(c)(3) Governance & Bylaws 2

Question 1

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

Accepted Answer

Ordinarily prudent person in a similar position under similar circumstances

Answer

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

Question 2

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

Accepted Answer

The minimum number of board members required to conduct official business

Answer

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

Question 3

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

Accepted Answer

Form 990

Answer

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.

Question 4

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

Accepted Answer

Electing and removing board members

Answer

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

Question 5

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

Accepted Answer

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

Answer

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

(CNC) Certified Nonprofit Consultant Practice Test