Nonprofit Basics
What is a mission statement?
a short description of an organization’s core purpose, strategy, and goals. Usually no longer than 1 sentence.
What’s it called when a nonprofit applies to a foundation for funding?
A grant proposal.
Who primarily provides oversight and strategic guidance for a nonprofit?
The board of directors.
True or False: Maine has an association to bring together nonprofits to support professional development and strategy.
True
True or False: Nonprofits can make a profit.
True— profits must be reinvested into the mission, not distributed to owners.
Name one earned-income strategy nonprofits might use.
Selling merchandise, program fees, social enterprises.
What is the title of the top staff leader in many nonprofits?
Executive Director or CEO.
Name one reason nonprofits measure impact.
To improve programs, attract funding, demonstrate accountability
What does the '501(c)(3)' designation refer to?
A tax-exempt charitable organization under IRS code
What is a bequest?
a donation that happens upon death that is put in a person’s will.
True or False: Board members are usually paid for their service.
False— most serve as volunteers.
What’s the IRS form nonprofits must file annually to maintain tax-exempt status?
Form 990.
Are nonprofit organizations allowed to lobby in an unlimited capacity?
No, they can only do it under certain circumstances and must not be partisan. If they want to lobby, they are a 501c4.
What is an in-kind donation?
a contribution of goods, services, or expertise rather than cash to an organization.
What document outlines a Board of Director’s rules of operation?
Bylaws
In what decade did the U.S. Congress formalize the 501(c)(3) tax status?
The 1950s (1954)