CNE Nonprofit Board Development 3

Question 1

Under the duty of obedience, nonprofit board members are required to:

Accepted Answer

Ensure the organization adheres to its mission and legal obligations

Answer

The duty of obedience requires board members to ensure the organization stays true to its stated mission and complies with applicable laws.

Question 2

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:

Accepted Answer

A conflict of interest violation

Answer

Participating in a vote where a personal financial interest exists violates conflict of interest policies and potentially the duty of loyalty.

Question 3

What is the 'prudent person standard' in nonprofit governance?

Accepted Answer

The expectation that board members act with the care an ordinarily prudent person would exercise in similar circumstances

Answer

The prudent person standard sets the baseline of care—diligence, informed decision-making—that board members must demonstrate to fulfill their duty of care.

Question 4

Which statement best describes the role of an executive committee in nonprofit governance?

Accepted Answer

It acts on behalf of the full board between meetings on urgent matters, within defined limits

Answer

Executive committees handle time-sensitive decisions between full board meetings, but their authority is typically bounded by bylaws and board policy.

Question 5

A board is considering a major strategic pivot for the organization. Who should lead this process?

Accepted Answer

A collaborative process between the board and executive leadership

Answer

Strategic planning is most effective when it is a partnership between board members (who set direction) and executive leadership (who understand operations).

(CNE) Certified Nonprofit Executive Practice Test

(CNE) Certified Nonprofit Executive Practice Test

CNE Nonprofit Board Development 3