CNE Board Development & Governance 2

Question 1

Which document primarily defines the internal governance rules and operating procedures of a nonprofit board?

Accepted Answer

Bylaws

Answer

Bylaws are the governing document that outlines board structure, meeting procedures, officer roles, and voting rules.

Question 2

A nonprofit board member who also owns a company that sells supplies to the organization has a duty to:

Accepted Answer

Disclose the relationship and recuse from related decisions

Answer

Conflict of interest policies require disclosure and recusal from decisions where a personal financial interest exists.

Question 3

What is the primary purpose of an executive session during a board meeting?

Accepted Answer

To allow the board to discuss sensitive matters confidentially

Answer

Executive sessions provide a confidential setting for the board to discuss personnel, legal, or other sensitive issues.

Question 4

Which governance practice best ensures board decisions reflect the full board's input rather than a single leader's preferences?

Accepted Answer

Distributing meeting materials at least 48–72 hours in advance

Answer

Advance distribution of materials allows all board members to review information, prepare questions, and participate meaningfully.

Question 5

Under the duty of loyalty, a board member must prioritize the interests of:

Accepted Answer

The nonprofit's mission and stakeholders

Answer

The duty of loyalty requires board members to act in the best interest of the organization, not personal or third-party interests.

(CNE) Certified Nonprofit Executive Practice Test