Nonprofit Business - Test One

The responsibility of overseeing the organizations actions belongs to:

The CEO and The Board

When the person who created a nonprofit finds it hard to change and people become increasingly torn between loyalty to that leaders and responsibility to the nonprofit, that organization may be experiencing:

Founder Syndrome

What charitable subsection accounts for the largest part of the nonprofit sector?

Health

Non-profits are different from business and government organizations in that they:

Imbue a sense of ownership and a desire for influence in internal and external associates of the organization, rely on the support of donors, rely on the support of volunteers, pursue missions that may be associated with controversial values and principles

True of False: A "self-perpetuating" board is one who is elected by members of the organization

False - EXISTING members of the BOARD

Define a "self-perpetuating governing board"

A self-perpetuating governing board is one that has the current members of the board decide who can be elected to come be a part of the board itself. The pre-existing members find it efficient to take what they know they have and what they need, and to seek out a candidate who can fulfill that position

The tendency for organizations in the same field to become more like each other because of facing similar influences from other environments is called:

Isomorphism

Which is NOT necessarily a defining characteristic of non-profit organizations?

They are NOT altruistic

A nonprofit organization with an annual revenue of $100,000 is required to file the Form 990 with the IRS

True

Which of the following is NOT a category of Carver's model distinguishing the responsibilities of board members?

Revitalization

Which theory explains events based on the motivations of and incentives given to those who produce a good or a service rather than on the motivations of those who have the capability and desire to consume it ("demand")?

Supply-side theory

What is a component of the "skills" theory of leadership?

Technical, human, AND conceptual

Which duty requires that the board make sure that the organization is complying with the law and, in addition, that any decisions or actions taken are consistent with the organization's mission and governing, including its charter?

The duty of obedience

Compare the leadership roles of the Board (governance) and the CEO (management) in nonprofits. Be sure to mention the effective relationship between the two

The leadership role of the Board consists of keeping the CEO in check by evaluating how effectively the CEO is carrying out and completing tasks. The Board also is meant to collaborate between the members that it consists of in order to effectively manage an organization

What is the mission statement of the organization we elected to study?

The mission statement of The American Cancer Society is: "The American Cancer Society's mission is to save lives, celebrate lives, and lead the fight for a world without cancer."

List and explain the two schools of thought about the meaning of "social entrepreneurship"

"the social enterprise school" - those that think of social entrepreneurship being anonymous with the application of business methods and the generation of earned income "the social innovation school" - a social entrepreneur is an innovator, who identifies opportunities and takes direct actions to produce change that improves society

Explain the functions of a nonprofit Board's "Governing" Committee

-identifies potential new members -identifies board's needs in terms of skills, knowledge, connections -recruits new board members -educates the board

Explain the differences between the elected governing boards and self-perpetuating governing boards?

Elected governing boards are those that are elected by members of the organization. Self-perpetuating governing boards are when new members of the board are selected by the existing members of the board, who identify and enlist individuals according to criteria established by the board itself

An organization's mission statement may be important to whom?

Entrepreneurs or donors, employees, AND volunteers

True or false: nonprofits are "closed" systems

False

Which of the following is NOT a duty of a nonprofit organization's Board?

Management is NOT

Which of the following is not a "failure" theory?

Organization failure

Which term best describes the following definition: "Unwritten rules or behavior that governs things such as what we wear, how people address each other, how to socialize, etc. that are often not controlled by formal policies"?

Organizational culture

Which of the following is NOT a characteristic of a non-profit organization?

Public (operated in the public sector)

One of the duties of the nonprofit board is to set expectations for the organization's CEO and to agree on and evaluate the CEO's effectiveness

True

True or False: Organizations that are high on production (task) and low on "relationship" are said to have authority-obedience management

True

True or False: The Governance Committee on a nonprofit Board does not run the Board, but makes it possible for the Board to be well-run

True

True or False: Universities and hospitals can both be classified as "hybrid" nonprofits

True

True or false: isomorphism is the tendency of organizations in the same field to become alike due to similar influences from their environment

True

Identify and briefly describe three of the seven different names for the "non-profit sector"

independent sector - yet, independent does not capture the essence of a nonprofit due to the fact that nonprofits are financially dependent on resources from both the government and private donors third sector - consisting of the idea of business sector and government economy// it badly implies a rank of importance voluntary sector - nonprofits do rely on volunteers, but it may perpetuate an inaccurate image of nonprofits as universally small