Nonprofit Nonprofit Governance 2

Question 1

What is the duty of care for nonprofit board members?

Accepted Answer

Making informed decisions by exercising reasonable diligence

Answer

Donating personally to the organization each year

Answer

Approving all staff hiring decisions

Answer

Attending every fundraising event

Question 2

What is a conflict of interest policy in a nonprofit?

Accepted Answer

A written policy requiring members to disclose personal interests that could influence decisions

Answer

A policy preventing board members from serving on other boards

Answer

A document banning paid staff from attending board meetings

Answer

A restriction on accepting government grants

Question 3

Which term describes the practice of self-dealing where a board member personally benefits from a nonprofit transaction?

Accepted Answer

Private inurement

Answer

Mission drift

Answer

Fiscal sponsorship

Answer

In-kind contribution

Question 4

What is an Executive Session in a nonprofit board meeting?

Accepted Answer

A closed meeting for board members only to discuss sensitive matters

Answer

The portion of the meeting where the Executive Director presents

Answer

A special meeting to approve the budget

Answer

An emergency meeting called by the board chair

Question 5

What is the term for a board composed primarily of working volunteers who also perform operational tasks?

Accepted Answer

Working Board

Answer

Governance Board

Answer

Advisory Board

Answer

Fiduciary Board

Question 6

What does 'duty of obedience' require of nonprofit board members?

Accepted Answer

Ensuring the organization adheres to its mission and complies with applicable laws

Answer

Following all directives from the Executive Director

Answer

Obeying donor restrictions on all gifts

Answer

Reporting to the state charity bureau monthly