Practice Test Geeks(CNE) Certified Nonprofit Executive Practice Test
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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

  1. What is the primary distinction between a 'working board' and a 'governing board'?

    Answer: Working boards are involved in day-to-day operations; governing boards focus on oversight and strategy

    Working boards (common in small or early-stage nonprofits) do operational work alongside governance, while governing boards delegate operations to staff.

  2. What is 'board giving' and why is it important?

    Answer: 100% participation by board members in financial contributions to the organization

    Board giving, or 100% board participation in donations, signals commitment to funders and strengthens fundraising credibility.

  3. Which of the following is a key responsibility of the board treasurer?

    Answer: Overseeing financial management and reporting to the full board on financial health

    The treasurer monitors financial performance, chairs the finance committee, and ensures the board has the information needed for sound financial oversight.

  4. A nonprofit is transitioning from founder leadership to a new executive director. What is the board's primary role during this transition?

    Answer: To lead the transition planning, hire the new executive, and ensure organizational stability

    Leadership transitions are a critical board responsibility—boards must manage the search process, support continuity, and ensure mission alignment in the new hire.

  5. What does 'fiduciary responsibility' mean in the context of nonprofit boards?

    Answer: The legal and ethical duty to manage the organization's resources in the best interest of the mission

    Fiduciary responsibility encompasses the duties of care, loyalty, and obedience—together ensuring board members act in the organization's best interest.

  6. In what situation would a nonprofit board appropriately move into 'executive session'?

    Answer: When discussing sensitive matters such as personnel issues or legal disputes

    Executive sessions allow the board to discuss confidential matters—such as executive performance, litigation, or personnel—without staff or public present.

  7. A board member shares confidential board discussion details with a major donor who is not a board member. This action violates which governance principle?

    Answer: Board confidentiality and duty of loyalty

    Board confidentiality is an obligation of loyalty—sharing internal deliberations with outsiders breaches trust and can harm organizational interests.