Midterm

Question 1

If measured by the total number of organizations, the largest subsector of charitable nonprofits is the ___________ subsector.

Answer 1

Human Services

Question 2

If measured by total revenue, which subsector of charitable nonprofits is the largest?

Answer 2

Health Services

Question 3

Which term identifies organizations that do not have to pay federal income taxes?

Answer 3

Tax-exempt

Question 4

The Internal Revenue Services (IRS) classifies a charitable organization as a : _________________

Answer 4

501 (c)(3)

Question 5

Organizations that operate under both nonprofit and for-profit legal forms are referred to as ___________ organizations.

Answer 5

Hybrid

Question 6

What benefit created by the U.S Congress is intended to encourage charitable giving?

Answer 6

Income Tax deductions for gifts

Question 7

T/F: A Nonprofit classified as 501(c)(3) cannot generate any profits for the organization.

Answer 7

False

Question 8

T/F: Increased government spending on social programs in the 1960s under President Lyndon B. Johnson administration led to the dramatic growth in the nonprofit sector

Answer 8

True

Question 9

T/F: Religious organizations are not considered charitable nonprofits by the Internal Revenue Services

Answer 9

False

Question 10

Managers of Nonprofit organizations measure their success by ________

Answer 10

Achieving the mission within financial limits

Question 11

The double bottom line concept means nonprofit managers must _______

Answer 11

Achieve the mission within financial means

Question 12

The National Taxonomy of Exempt Entities divides nonprofit organizations into categories based on their ________

Answer 12

Purposes & activities

Question 13

A nonprofit that qualifies under Section 501(c)(3) must limit its expenditure on ____________

Answer 13

lobbying

Question 14

The Internal Revenue Service classifies a social welfare organization as a: _________

Answer 14

501(c)(4)

Question 15

Salamon’s anatomy classifies nonprofit organizations by _____________

Answer 15

who receives the principal benefit of their activities

Question 16

The two spectrums that define a social enterprise are philanthropic and _______________

Answer 16

Commercial

Question 17

T/F: A Nonprofit classified as a 501(c)(3) cannot support candidates for public office.

Answer 17

True

Question 18

Sociologists describe nonprofits as ___________

Answer 18

Mediating Structures

Question 19

What theory attributes the existence of nonprofit organizations as filling the gap left by market & government?

Answer 19

Failure Theories

Question 20

A majority of citizens in a community do not agree with a minority of citizens that a local nonprofit organization is needed to serve the needs of homeless citizens. This sentence is an example of ____________

Answer 20

Demand Heterogeneity

Question 21

Lohmann describes a third category of goods as ___________ goods

Answer 21

Common

Question 22

T/F: Nonprofit Organizations differ from government organizations in that they have more flexibility to respond to the needs of diverse groups.

Answer 22

True

Question 23

T/F: The Internal Revenue Service does not allow nonprofits to undertake experimentation concerning the development of new programs.

Answer 23

False

Question 24

T/F: Failure theories suggest governments cannot always pay attention to the needs of all groups.

Answer 24

True

Question 25

Economic theories are used to explain how nonprofit organizations as gap fillers to compensate for failures of the free market and _________

Answer 25

Government

Question 26

Salamon identifies nonprofits as ___________

Answer 26

Self-governing

Question 27

Nonprofit Organizations are driven by __________________

Answer 27

The achievement of their missions

Question 28

_______________ enables a nonprofit organization operating as an open system to adapt to changing circumstances

Answer 28

Feedback

Question 29

__________________ theory explains the behavior of organizations in terms of their reliance on external constituencies

Answer 29

Resource Dependencies

Question 30

A risk of resource dependence is actions taken by the nonprofit to alter its goals to satisfy the contributor of funds. This action is also called ___________

Answer 30

Goal Displacement

Question 31

The concept that organizations become more like each other when facing similar environmental influences is called ____________________

Answer 31

Isomorphism

Question 32

According to Edgar Schein, logos, ceremonies, and symbols belong to what category of culture?

Answer 32

Artifacts and Creations

Question 33

T/F: The term "open systems" means organizations interact with their external enviornments.

Answer 33

True

Question 34

In a self-perpetuating board, new members are selected by ______________

Answer 34

The existing members of the board

Question 35

Elected boards are MOST common in __________________

Answer 35

Member-serving & advocacy organizations

Question 36

Establishing the nonprofit's mission is the responsibility of the organization's _____________________

Answer 36

board

Question 37

What board duty is defined as "members putting their interests of the organization above their personal interests"?

Answer 37

Loyalty

Question 38

A board of directors is debating if a proposed new program falls within the organization's mission. The board is applying which type of duty?

Answer 38

Obedience

Question 39

A Nonprofit Organization's finance committee is listening to the advice of a financial expert on how to manage the organization's investments. The board is practicing which duty?

Answer 39

Care

Question 40

T/F: Governing Boards have ultimate responsibility for ensuring an organization serves its mission.

Answer 40

True

Question 41

T/F: A board governs the Nonprofit organization, while the chief executive officer manages the organization.

Answer 41

True

Question 42

T/F: The responsibility of "obedience" means board members need to do what the chief executive officer asks them to do.

Answer 42

False

Question 43

Effective Chief Executive Officers focus on _________

Answer 43

Key goals, resource, and strategy

Question 44

Leaders who use a political frame are

Answer 44

Comfortable with the fact that their interests differ and conflict

Question 45

Which organizational model places the board at the top of the hierarchy and the chief executive officer as an agent?

Answer 45

Board-centered leadership

Question 46

The founder found it difficult to turn management of the nonprofit over to a new chief executive officer. The founder was demonstrating _____ syndrome?

Answer 46

Founder

Question 47

A CEO's responsibilities include both managing and leading the organization.

Answer 47

True

Question 48

One responsibility of a nonprofit chief executive officer is to select new members of the board of directors.

Answer 48

False

Question 49

The effective leader, as defined by Human Resource Frame, searches for an important balance between the goals of the organization and the hopes and aspirations of its members by attending to individual hopes, feelings and preferences, valuing relationships and feeling.

Answer 49

True

Question 50

A nonprofit leader had better not take any significant role when the board defines issues and questions of the organization and develops the policy.

Answer 50

False

Question 51

In his policy governance mode, Carver argues boards should lead by focusing their attention on establishing _____.

Answer 51

Policies

Question 52

A nonprofit board is establishing ground rules regarding what type of fundraising efforts would not be allowed. The board is setting a policy that Carver would refer to as a(n) _____.

Answer 52

Means to the end

Question 53

Chait, Ryan, and Taylor suggest nonprofit boards focus their attention on _____.

Answer 53

Critical issues facing the organization

Question 54

____ means a person is perceived by the board and others as a principally responsible for the organization's success or failure.

Answer 54

Psychological centrality

Question 55

Who did Herman and Heimovics (CEO's Centality) say is most often viewed as responsible for the organization's success or failure?

Answer 55

The chief executive officer

Question 56

Chait et al. write that nonprofit boards should manage the organizations they serve.

Answer 56

False

Question 57

Carver's primary concern is to ensure board members focus on developing and maintaining policies and not become mired down in managing operational-level responsibilities.

Answer 57

True

Question 58

According to Herzberg, what are hygiene factors that cannot increase or decrease satisfaction, but can affect only the degree of dissatisfaction.

Answer 58

Compensation

Question 59

Which theory states that employees working in government hold values that are distinguishable from those working in the private sector.

Answer 59

Public Service Motivation

Question 60

When managing employees, nonprofits have an advantage over for-profit companies in ____

Answer 60

Motivating their workforces

Question 61

What are advantages that nonprofits have in terms of managing employees over public agencies in

Answer 61

Fostering congruence between individual and organizational values

Question 62

Volunteer program managers should develop volunteer _____.

Answer 62

Job descriptions

Question 63

Brian volunteers does volunteers work at a three-day book fair once every three years. What type of volunteer is Brian?

Answer 63

Episodic

Question 64

Federal employment laws do not apply to nonprofit staff.

Answer 64

False

Question 65

Nonprofit workers tend to be more intrinsically motivated, more committed to mission achievement, activism, and social growth than individuals working at for-profit organizations.

Answer 65

True

Question 66

One way to effectively manage volunteers is to be aware of what motivates them.

Answer 66

True

Question 67

Research studies indicate managers who want to keep volunteers should provide them work deadlines.

Answer 67

False