CNE Strategic Planning & Governance 3

Question 1

A nonprofit conducts an environmental scan as part of strategic planning. Which framework specifically examines Political, Economic, Social, Technological, Legal, and Environmental factors?

Accepted Answer

PESTLE

Answer

PESTLE (or PEST) analysis systematically examines macro-environmental factors that may affect an organization's strategy.

Question 2

Board term limits are primarily designed to achieve which governance outcome?

Accepted Answer

Ensure fresh perspectives and prevent entrenchment

Answer

Term limits refresh board composition, bringing new perspectives and preventing governance stagnation while managing power concentration.

Question 3

Which document legally establishes a nonprofit corporation and is filed with the state?

Accepted Answer

Articles of incorporation

Answer

Articles of incorporation (or a certificate of incorporation) are the foundational legal documents filed with the state to create a nonprofit corporation.

Question 4

A strategic goal differs from a strategic objective primarily in that goals are:

Accepted Answer

Broader statements of desired outcomes

Answer

Strategic goals are broad aspirational outcomes, while objectives break goals into specific, measurable, time-bound steps.

Question 5

A nonprofit board that rubber-stamps every executive director recommendation without independent analysis is exhibiting which governance failure?

Accepted Answer

Lack of independence / passive governance

Answer

Passive governance — where the board fails to exercise independent judgment — violates the board's fiduciary duty of care.

(CNE) Certified Nonprofit Executive Practice Test

(CNE) Certified Nonprofit Executive Practice Test

CNE Strategic Planning & Governance 3