Nonprofit Nonprofit Governance

Question 1

What is the primary governing body of a nonprofit organization in the US?

Accepted Answer

Board of Directors

Answer

The Board of Directors holds ultimate legal and fiduciary responsibility for a US nonprofit organization.

Question 2

Which of the following best describes the duty of loyalty for nonprofit board members?

Accepted Answer

Acting in the best interest of the organization rather than personal gain

Answer

The duty of loyalty requires board members to put the organization's interests ahead of their own personal or financial interests.

Question 3

What is a quorum in the context of nonprofit board meetings?

Accepted Answer

The minimum number of members needed to conduct official business

Answer

A quorum is the minimum number of board members that must be present for the board to legally conduct business and make decisions.

Question 4

What document outlines the internal rules and procedures that govern a nonprofit organization?

Accepted Answer

Bylaws

Answer

Bylaws are the internal governing document that specifies how the nonprofit operates, including board structure and meeting procedures.

Question 5

Which board governance model separates the board's policy role from the staff's operational role?

Accepted Answer

Policy Governance (Carver Model)

Answer

The Policy Governance or Carver Model clearly distinguishes between the board setting policy ends and the executive directing means.

Nonprofit Practice Test