Nonprofit Nonprofit Governance 3

Question 1

What is board succession planning?

Accepted Answer

A proactive strategy to identify and develop future board leaders

Answer

A plan to replace the Executive Director

Answer

A process to merge with another nonprofit

Answer

A donor stewardship program

Question 2

Which document legally creates a nonprofit corporation in the US?

Accepted Answer

Articles of Incorporation

Answer

Bylaws

Answer

Form 1023

Answer

Conflict of Interest Policy

Question 3

What is the purpose of a board self-assessment?

Accepted Answer

To evaluate the board's effectiveness and identify areas for improvement

Answer

To assess individual staff performance

Answer

To review the organization's strategic plan

Answer

To audit the nonprofit's financial statements

Question 4

What is term limits in nonprofit governance?

Accepted Answer

Restrictions on the number of consecutive terms a board member may serve

Answer

The length of time a nonprofit's mission is valid

Answer

Limits on how long grant funds can be used

Answer

Restrictions on how long the Executive Director can serve

Question 5

What is the relationship between a nonprofit's board and its Executive Director?

Accepted Answer

The board hires, evaluates, and supports the Executive Director who manages day-to-day operations

Answer

The Executive Director oversees the board's activities

Answer

They share equal authority over all decisions

Answer

The state government appoints the Executive Director

Question 6

Which of the following is a key indicator of effective nonprofit governance?

Accepted Answer

Active board engagement in strategic planning and oversight

Answer

Board members approving every staff hiring decision

Answer

The Executive Director also serving as board chair

Answer

Having no written conflict of interest policy