Finance Matters
Be Ready
Terms and Stuff
Nonprofit General
Governance and Misc
100
This term describes something that a board member may not do relating to profits and excessive compensation from a Nonprofit
What is Inurement
100
The group process by which a Nonprofit examines its mission, what it is doing now and envisions for its future
What is Strategic Planning
100
This type of organization runs its own programs and receives donations or earns income, but is not required to make distributions_____________ and is organized under what provision of the IRS Code?
What is an Operating Foundation and 501(c)(3)
100
One of the primary reasons a group of individuals would choose to form a corporation, rather than remain as a looser type of organization is _______
What is Protection from Liability
100
The Ultimate decision making for a Nonprofit rests with essential group
What is the Board of Directors
200
When a Nonprofit has paid a certain category of employee, board member or officer much more than the norm generally seen in that type of nonprofit, it engages in an ____________
What is an Excess Benefit Transaction
200
This is a key element to solving problems at the earliest possible level and to understanding what problems and solutions might exist
What is Communication
200
A Board Member owes this type of duty to the Nonprofits for whom she serves
What is a Fiduciary Duty
200
This important group within a nonprofit should be trained, selected and treated in many ways like employees, but must be recognized as being very different
What are Volunteers
200
These organizational documents are not required _________________ and if they do not exist the nonprofit will resort to the rules contained in this code_____________
What are bylaws and what is the Corporations code
300
This accronym refers to accounting standards that must be followed when a nonprofit seeks to adhere to standard practices _____________ and it stands for ________________
What is G.A.A.P. Generally Accepted Accounting Principles
300
This Four Letter Accronym is key part of any Strategic Planning exercise
What is S.W.O.T?
300
A Board Member is generally immune from his actions when he is engaging in work for the nonprofit, except in this circumstance
What is Self Dealing
300
A trade association is formed under this provision of the IRS code ____________ AND a private foundation is formed under this provision of the IRS Code _____________
What is 501(c)(6) and what is 501(c)(3)
300
This person generally sits on committees of the Board of Directors and while he/she does not vote, they are still and important member
What is an Executive Director
400
If a donor makes a donation to a 501(c)(3) and receives a hat or a t-shirt of minimal value in return, he/she may claim this percentage of the donation as tax deductible
What is 100%
400
S.W.O.T examines four things what are they?
What are Strengths, Weaknesses, Opportunities and Threats
400
A nonprofit is often said to operate based on this when it is concerned both with profitability and achieving its mission
What is a Double Bottom Line
400
In some circumstances the IRS has found this percentage of activity to be "substantial" when determining whether it is engaging in mission related activity
What is 5%
400
The Sibley Hospital Case established these three primary fiduciary duties that are owed by a member of the Board of Directors
What are care, loyalty and obedience
500
When a nonprofit receives donations from private people or companies and grants from foundations and the government the contributions are classified by the IRS as _________________
What is Public Support
500
In any Strategic Planning process the first important item examined by the group is
What is its Mission Statement
500
An organization that records its financial transactions based on money/assets received and debts/obligations incurred at the time they are received or incured operates on this type of accounting method
What is a cash basis
500
Of the following identified nonprofits this one MAY engage in public education on a political initiative issue 501(c)(3) 501(c)(4) 501(c)(6)
What is All of them
500
When a nonprofit acquires insurance, enacts policies for employees and volunteers, adopts Conflict of Interest policies, establishes financial controls, trains and conducts background checks on people involved in the operations of the organization it is engaging in
What is Risk Management or Risk Mitigation
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