CNE Nonprofit Board Development 2 — Questions and Answers
Question 1: A nonprofit board wants to assess its own effectiveness. Which tool is most commonly used for this purpose?
- Organizational budget review
- Board self-assessment survey (Correct answer)
- Staff performance evaluations
- Annual audit report
Correct answer: Board self-assessment survey
Board self-assessment surveys allow members to evaluate governance practices, committee performance, and individual contributions against established criteria.
Question 2: What is the primary purpose of a board orientation program?
- To introduce new members to governance duties and organizational culture (Correct answer)
- To evaluate existing board member performance
- To train staff on board expectations
- To satisfy IRS requirements for 501(c)(3) status
Correct answer: To introduce new members to governance duties and organizational culture
Orientation helps new board members understand their legal duties, the organization's mission, bylaws, financials, and strategic priorities.
Question 3: Which of the following best describes 'board culture'?
- The formal bylaws and committee structure
- The unwritten norms, values, and behaviors that guide how the board operates (Correct answer)
- The diversity metrics of board composition
- The frequency of board meetings
Correct answer: The unwritten norms, values, and behaviors that guide how the board operates
Board culture encompasses informal norms around communication, decision-making, dissent, and accountability that shape boardroom dynamics.
Question 4: A board member who consistently misses meetings and ignores committee assignments should first be addressed through:
- Immediate removal from the board
- A public reprimand at a board meeting
- A private conversation by the board chair to clarify expectations (Correct answer)
- A formal legal proceeding
Correct answer: A private conversation by the board chair to clarify expectations
Best practice calls for the board chair to privately address attendance and engagement issues before escalating to formal removal procedures.
Question 5: What does a board matrix (skills grid) help an organization accomplish?
- Track board member attendance
- Identify skill and demographic gaps to guide recruitment (Correct answer)
- Measure the CEO's performance
- Allocate committee assignments fairly
Correct answer: Identify skill and demographic gaps to guide recruitment
A skills matrix maps current board members' expertise, demographics, and networks, revealing gaps that recruitment efforts should fill.
Question 6: In nonprofit governance, 'term limits' are intended to:
- Reduce the board's legal liability
- Ensure board renewal and prevent entrenchment (Correct answer)
- Comply with federal tax regulations
- Limit the board chair's authority
Correct answer: Ensure board renewal and prevent entrenchment
Term limits encourage fresh perspectives and leadership development by rotating members off the board after a set period.
Question 7: Which committee is typically responsible for identifying and vetting prospective board members?
- Finance committee
- Audit committee
- Governance or nominating committee (Correct answer)
- Executive committee
Correct answer: Governance or nominating committee
The governance or nominating committee leads board recruitment, candidate screening, and onboarding to ensure strategic board composition.
CNE Nonprofit Board Development 2
A nonprofit board wants to assess its own effectiveness.
Which tool is most commonly used for this purpose?