CNE Board Development & Governance 3

Question 1

Which of the following is the best indicator that a board has strong fiduciary oversight of finances?

Accepted Answer

The board receives and reviews regular financial statements against budget

Answer

Regular review of financial statements compared to the approved budget is a core fiduciary responsibility of the board.

Question 2

What is 'board succession planning' primarily designed to address?

Accepted Answer

Ensuring continuity of board leadership through planned transitions

Answer

Succession planning identifies and prepares future board leaders so governance continuity is maintained during officer transitions.

Question 3

A board that 'rubber stamps' every executive director recommendation is failing which governance responsibility?

Accepted Answer

Independent oversight and critical judgment

Answer

The board's oversight role requires independent evaluation of management recommendations, not automatic approval.

Question 4

Which statement best describes the relationship between the board and the executive director?

Accepted Answer

The board sets policy and direction; the ED manages day-to-day operations

Answer

The board governs and sets strategic direction while the executive director is responsible for operational management and implementation.

Question 5

A written board member agreement that outlines attendance, giving, and committee expectations is best described as a:

Accepted Answer

Board member job description or commitment form

Answer

A board member job description or commitment form clarifies expectations and creates mutual accountability between the board member and organization.

(CNE) Certified Nonprofit Executive Practice Test