Nonprofit Board Development Flashcards
7 cards from real CNE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Nonprofit Board Development flashcards as text
Under the duty of obedience, nonprofit board members are required to:
Answer: Ensure the organization adheres to its mission and legal obligations
The duty of obedience requires board members to ensure the organization stays true to its stated mission and complies with applicable laws.
A board votes on a contract with a company owned by a board member's spouse. The board member participated in the discussion and vote. This is an example of:
Answer: A conflict of interest violation
Participating in a vote where a personal financial interest exists violates conflict of interest policies and potentially the duty of loyalty.
What is the 'prudent person standard' in nonprofit governance?
Answer: The expectation that board members act with the care an ordinarily prudent person would exercise in similar circumstances
The prudent person standard sets the baseline of care—diligence, informed decision-making—that board members must demonstrate to fulfill their duty of care.
Which statement best describes the role of an executive committee in nonprofit governance?
Answer: It acts on behalf of the full board between meetings on urgent matters, within defined limits
Executive committees handle time-sensitive decisions between full board meetings, but their authority is typically bounded by bylaws and board policy.
A board is considering a major strategic pivot for the organization. Who should lead this process?
Answer: A collaborative process between the board and executive leadership
Strategic planning is most effective when it is a partnership between board members (who set direction) and executive leadership (who understand operations).
Which document primarily governs the internal rules and procedures of a nonprofit board?
Answer: Bylaws
Bylaws are the legally binding internal governance document that outlines board structure, meeting procedures, officer roles, and amendment processes.
When should a nonprofit board review and update its bylaws?
Answer: Periodically, typically every 3-5 years or when significant governance changes occur
Regular bylaw reviews ensure governance documents reflect current organizational structure, legal requirements, and best practices.