Certified Nonprofit Professional Exam
nonprofit organization
Legally constituted, NGO, chartered by state governments. Nonprofits have a public focused
mission and are typically exempt from payment of federal and state income taxes
Characteristics of all Nonprofits
Collective or public purpose identified in the mission statement
Designation as a tax exempt entity
Assets cannot be divided among directors, officers, or members
Previous
Play
Next
Rewind 10 seconds
Move forward 10 seconds
Unmute
0:00
/
0:15
Full screen
Brainpower
Read More
Classification of Nonprofits
Religious
charitable
scientific
literacy
education
public safety testing
prevention of children and animal cruelty
National ind international amateur sports competitions development
Three ways of funding a nonprofit
Charge for the work they do (classes, memberships, services, and products produced)
Donations
Find other ways
Can Nonprofits make money?
,YES
Private Inurement Doctrine
The doctrine basically says that a nonprofit can't be set up to benefit a person instead of a
cause. Specifically, this means that none of the income or assets of a tax-exempt
organization may be permitted to directly or indirectly benefit an individual or other person
who has a close relationship with the organization, particularly when that person is in a
position to exercise a significant degree of control over the entity. The doctrine requires that
these transactions or arrangements be tested against a standard of reasonableness,
meaning that all transactions with insiders must be in line with industry norms. If found in
violation of the private inurement doctrine its tax-exempt status can be revoked or denied.
Tax Exempt Form
990 form
Good things that come out of strategic planning
Establishing goals, issues, values, priorities
Process can help ID issues within the organization
Space for new ideas
Problems of strategic planning
it is driven by funders
Used to deflect criticism or unrest
delay decisions--expanding the problems and limiting solutions
5 major issues with strategic planning
1. they do not take financial sustainability seriously
2. Rarely describes HOW to achieve the goals
3. failing to build analytic capacity or relationships for the organization
4. Questions can go left unanswered
5. Confusion, Disagreement, and Financial problems are mistakenly attributed to the lack of
strategic plan
Mission Statement
determines whether the organization meets the requirements to be recognized as a
nonprofit. A review of the mission statement is the first step of a comprehensive strategic
planning process.
What is the largest category of income or revenue for a nonprofit
Fees for Service
,Which statement best describes how Public, Nonprofit, and Private are comparable
Organizations in each of the three sectors need revenue/income to cover of staff, space,
utilities, and operational costs
True or False: Nonprofit organizations are typically created by a set of individuals who
identify a common need or interest. Their ability to define what the group wants to do in
terms of mission and vision is the first step on the road to organization incorporation or
chartering.
True!
What is a bad mission statement
Only communicates the What and How
What are true for nonprofits
--501(c)(3) nonprofit organizations are controlled by a volunteer board of directors within
legal constraints.
--501(c)(3) nonprofit organizations are prohibited from supporting candidates running for
public office.
--501(c)(3) nonprofit organizations are prohibited from distributing excess funds to
individuals such as board members.
Leadership vs. Management
Leadership: Vision and long term perspective
Nurture innovation
Inspire loyalty and risk taking
Asks what and why
Managers:
Handle daily operations
Maintain and control
Focus on tactics and execution
Leadership Myths
Leaders are born, not made
Good leadership is all common sense
The only school you learn leadership from is the school of hard knocks
Full picture of the nonprofit structure
, Board and executives relationship
The board delegates its authority to the executive director to run the organization
The board of directors cannot delegate legal obligations
Successful executive directors assure that the board fulfills its its roles
TRUST is critical for the partnership to work well
Key Operational role for the Board: Hiring the exec director
Understanding the role of executive director is critical so they can
Hire the right ED
Guide the organization and ED according to the mission
Evaluate the ED
The fiduciary duties of a nonprofit board of directors include:
Duty of Care,
Duty of Loyalty, and
Duty of Obedienc
According to state law, which of the following is the legally liable body for a nonprofit
organization?
Volunteer board of directors
In typical nonprofits, the executive director and her/his staff govern the organization and
board of directors are responsible for the management and operations of the organization.
FALSE
What is leadership as defined in lesson 2
--The process of influencing people to act in the pursuit of achieving a common goal
-- A fformal role includes strategic decision making, authority, power, responsibility
-- An informal role involves traits, interaction, behavior, visiion, values, charisma, intelligence
Key roles of a Nonprofit Leader
Planning
Coordinating
Organizing
Reporting
Motivating
Supervising
Decision Making
Managing finances
Delegating
nonprofit organization
Legally constituted, NGO, chartered by state governments. Nonprofits have a public focused
mission and are typically exempt from payment of federal and state income taxes
Characteristics of all Nonprofits
Collective or public purpose identified in the mission statement
Designation as a tax exempt entity
Assets cannot be divided among directors, officers, or members
Previous
Play
Next
Rewind 10 seconds
Move forward 10 seconds
Unmute
0:00
/
0:15
Full screen
Brainpower
Read More
Classification of Nonprofits
Religious
charitable
scientific
literacy
education
public safety testing
prevention of children and animal cruelty
National ind international amateur sports competitions development
Three ways of funding a nonprofit
Charge for the work they do (classes, memberships, services, and products produced)
Donations
Find other ways
Can Nonprofits make money?
,YES
Private Inurement Doctrine
The doctrine basically says that a nonprofit can't be set up to benefit a person instead of a
cause. Specifically, this means that none of the income or assets of a tax-exempt
organization may be permitted to directly or indirectly benefit an individual or other person
who has a close relationship with the organization, particularly when that person is in a
position to exercise a significant degree of control over the entity. The doctrine requires that
these transactions or arrangements be tested against a standard of reasonableness,
meaning that all transactions with insiders must be in line with industry norms. If found in
violation of the private inurement doctrine its tax-exempt status can be revoked or denied.
Tax Exempt Form
990 form
Good things that come out of strategic planning
Establishing goals, issues, values, priorities
Process can help ID issues within the organization
Space for new ideas
Problems of strategic planning
it is driven by funders
Used to deflect criticism or unrest
delay decisions--expanding the problems and limiting solutions
5 major issues with strategic planning
1. they do not take financial sustainability seriously
2. Rarely describes HOW to achieve the goals
3. failing to build analytic capacity or relationships for the organization
4. Questions can go left unanswered
5. Confusion, Disagreement, and Financial problems are mistakenly attributed to the lack of
strategic plan
Mission Statement
determines whether the organization meets the requirements to be recognized as a
nonprofit. A review of the mission statement is the first step of a comprehensive strategic
planning process.
What is the largest category of income or revenue for a nonprofit
Fees for Service
,Which statement best describes how Public, Nonprofit, and Private are comparable
Organizations in each of the three sectors need revenue/income to cover of staff, space,
utilities, and operational costs
True or False: Nonprofit organizations are typically created by a set of individuals who
identify a common need or interest. Their ability to define what the group wants to do in
terms of mission and vision is the first step on the road to organization incorporation or
chartering.
True!
What is a bad mission statement
Only communicates the What and How
What are true for nonprofits
--501(c)(3) nonprofit organizations are controlled by a volunteer board of directors within
legal constraints.
--501(c)(3) nonprofit organizations are prohibited from supporting candidates running for
public office.
--501(c)(3) nonprofit organizations are prohibited from distributing excess funds to
individuals such as board members.
Leadership vs. Management
Leadership: Vision and long term perspective
Nurture innovation
Inspire loyalty and risk taking
Asks what and why
Managers:
Handle daily operations
Maintain and control
Focus on tactics and execution
Leadership Myths
Leaders are born, not made
Good leadership is all common sense
The only school you learn leadership from is the school of hard knocks
Full picture of the nonprofit structure
, Board and executives relationship
The board delegates its authority to the executive director to run the organization
The board of directors cannot delegate legal obligations
Successful executive directors assure that the board fulfills its its roles
TRUST is critical for the partnership to work well
Key Operational role for the Board: Hiring the exec director
Understanding the role of executive director is critical so they can
Hire the right ED
Guide the organization and ED according to the mission
Evaluate the ED
The fiduciary duties of a nonprofit board of directors include:
Duty of Care,
Duty of Loyalty, and
Duty of Obedienc
According to state law, which of the following is the legally liable body for a nonprofit
organization?
Volunteer board of directors
In typical nonprofits, the executive director and her/his staff govern the organization and
board of directors are responsible for the management and operations of the organization.
FALSE
What is leadership as defined in lesson 2
--The process of influencing people to act in the pursuit of achieving a common goal
-- A fformal role includes strategic decision making, authority, power, responsibility
-- An informal role involves traits, interaction, behavior, visiion, values, charisma, intelligence
Key roles of a Nonprofit Leader
Planning
Coordinating
Organizing
Reporting
Motivating
Supervising
Decision Making
Managing finances
Delegating
