Nonprofit Strategic Planning and Organizational Development 2 — Questions and Answers
Question 1: Which of the following best describes a nonprofit's theory of change?
- A plan for switching fiscal sponsors
- A narrative explaining how and why activities lead to desired long-term outcomes (Correct answer)
- A budget reallocation process
- A board succession framework
Correct answer: A narrative explaining how and why activities lead to desired long-term outcomes
A theory of change articulates the causal pathway from an organization's work to the social change it aims to achieve.
Question 2: Environmental scanning in nonprofit strategic planning involves:
- Reviewing energy usage in the office
- Assessing external trends and forces that may impact the organization (Correct answer)
- Monitoring air quality near program sites
- Auditing environmental grant compliance
Correct answer: Assessing external trends and forces that may impact the organization
Environmental scanning examines political, economic, social, technological, and competitive factors in the external landscape.
Question 3: A nonprofit's vision statement differs from its mission statement in that the vision describes:
- Current programs and services
- The day-to-day operations of staff
- The ideal future state the organization works toward (Correct answer)
- The legal structure of the organization
Correct answer: The ideal future state the organization works toward
The vision statement paints a picture of the desired future, while the mission explains what the organization does today to get there.
Question 4: Which planning tool uses a one-page summary of an organization's most critical strategic priorities?
- Gantt chart
- Balanced scorecard (Correct answer)
- Strategic dashboard
- Balanced scorecard and dashboard are the same
Correct answer: Balanced scorecard
The balanced scorecard condenses key strategic objectives and performance metrics across multiple dimensions into a concise management tool.
Question 5: When a nonprofit conducts a capacity assessment, what is the primary goal?
- To determine the maximum grant amount to request
- To identify internal strengths and gaps that affect mission delivery (Correct answer)
- To evaluate individual staff performance
- To measure community satisfaction scores
Correct answer: To identify internal strengths and gaps that affect mission delivery
A capacity assessment reveals where the organization is strong and where it needs investment to fulfill its mission more effectively.
Question 6: Which of the following is a key indicator of a well-functioning nonprofit board during strategic planning?
- The board delegates all planning to the executive director
- Board members actively participate in setting organizational direction and priorities (Correct answer)
- Planning is done once and never revisited
- The board focuses exclusively on financial oversight
Correct answer: Board members actively participate in setting organizational direction and priorities
An effective board actively engages in shaping strategy, not merely rubber-stamping staff recommendations.
Question 7: Strategic goals in a nonprofit plan should ideally be SMART. What does the 'R' in SMART stand for?
- Resourced
- Relevant (Correct answer)
- Rapid
- Repeatable
Correct answer: Relevant
SMART goals are Specific, Measurable, Achievable, Relevant, and Time-bound — 'Relevant' ensures the goal aligns with the mission.
Nonprofit Strategic Planning and Organizational Development 2
Which of the following best describes a nonprofit's theory of change?