Nonprofit Cheat Sheet 2026
The 30 highest-yield Nonprofit facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.
- What is a giving society in nonprofit development? → A donor recognition program that acknowledges contributors at various gift levels
- What is the role of the Nominating Committee in a nonprofit board? → Identifying and recruiting qualified candidates for board membership
- What happens if a US nonprofit fails to file Form 990 for three consecutive years? → It automatically loses its tax-exempt status
- Which phase of strategic planning involves translating goals into specific actions with assigned owners and deadlines? → Implementation planning
- What does 'intermediate sanctions' refer to in nonprofit law? → IRS excise taxes imposed on nonprofit insiders who receive excess compensation or benefits
- What is a volunteer management program? → A structured system for recruiting, training, supervising, and recognizing volunteers
- What is the term for a board composed primarily of working volunteers who also perform operational tasks? → Working Board
- What is the primary governing body of a nonprofit organization in the US? → Board of Directors
- What does 'mission drift' mean for a nonprofit? → When an organization strays from its original mission to pursue funding opportunities
- What is board succession planning? → A proactive strategy to identify and develop future board leaders
- Which of the following best supports a culture of continuous learning in a nonprofit? → Conducting regular after-action reviews and using data to improve programs
- Which of the following best describes a nonprofit's theory of change? → A narrative explaining how and why activities lead to desired long-term outcomes
- What does 'organizational capacity' refer to in the nonprofit context? → The organization's ability to achieve its mission through people, systems, and resources
- A SWOT analysis helps a nonprofit identify its Strengths, Weaknesses, Opportunities, and what else? → Threats
- Which document legally creates a nonprofit corporation in the US? → Articles of Incorporation
- What financial statement summarizes a nonprofit's assets, liabilities, and net assets at a specific point in time? → Statement of Financial Position
- Which term describes the practice of self-dealing where a board member personally benefits from a nonprofit transaction? → Private inurement
- What document outlines the internal rules and procedures that govern a nonprofit organization? → Bylaws
- A nonprofit that merges with another organization to expand services and share resources is engaging in: → Strategic restructuring
- What is the purpose of a gift acknowledgment letter? → To thank donors and provide IRS-required documentation of their contribution
- What is a donor retention rate? → The percentage of donors who gave in the prior year who also gave in the current year
- Which metric is most useful for measuring whether a nonprofit is achieving its strategic outcomes? → Percentage of program participants who demonstrate measurable change
- Which component is the foundation of a nonprofit's strategic plan? → Mission statement
- Which planning tool uses a one-page summary of an organization's most critical strategic priorities? → Balanced scorecard
- What is a SWOT analysis in nonprofit planning? → An assessment of Strengths, Weaknesses, Opportunities, and Threats facing the organization
- What is Form 1023 used for in the US nonprofit sector? → Applying to the IRS for 501(c)(3) tax-exempt status
- What does 'duty of obedience' require of nonprofit board members? → Ensuring the organization adheres to its mission and complies with applicable laws
- What is the minimum distribution requirement for private foundations? → They must distribute at least 5% of investment assets annually for charitable purposes
- What IRS designation classifies most charitable nonprofits in the United States? → 501(c)(3)
- What is a quorum in the context of nonprofit board meetings? → The minimum number of members needed to conduct official business
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