Nonprofit Nonprofit Governance 1 — Questions and Answers
Question 1: What is the primary governing body of a nonprofit organization in the US?
- Board of Directors (Correct answer)
- Executive Director
- State Attorney General
- IRS
Correct answer: Board of Directors
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?
- Acting in the best interest of the organization rather than personal gain (Correct answer)
- Attending all board meetings without exception
- Filing annual reports with the IRS
- Hiring qualified staff members
Correct answer: Acting in the best interest of the organization rather than personal gain
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?
- The minimum number of members needed to conduct official business (Correct answer)
- The maximum number of board members allowed
- A written resolution passed by email
- A financial audit of board expenses
Correct answer: The minimum number of members needed to conduct official business
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?
- Bylaws (Correct answer)
- Articles of Incorporation
- Form 990
- Mission Statement
Correct answer: Bylaws
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?
- Policy Governance (Carver Model) (Correct answer)
- Working Board Model
- Advisory Board Model
- Hybrid Governance Model
Correct answer: Policy Governance (Carver Model)
The Policy Governance or Carver Model clearly distinguishes between the board setting policy ends and the executive directing means.
Question 6: What is the role of the Nominating Committee in a nonprofit board?
- Identifying and recruiting qualified candidates for board membership (Correct answer)
- Approving the annual operating budget
- Overseeing financial audits
- Managing employee compensation
Correct answer: Identifying and recruiting qualified candidates for board membership
The Nominating Committee is responsible for identifying, vetting, and recommending new board member candidates to ensure strong governance.
Nonprofit Nonprofit Governance 1
What is the primary governing body of a nonprofit organization in the US?