Midterm Questions

Question 1

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

Answer 1

Human Services

Question 2

If my measured by total revenue, which sub-sector of charitable nonprofits is the largest?

Answer 2

Health Services

Question 3

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

Answer 3

Tax Exempt

Question 4

The Internal Revenue Service (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 US Congress is intended to encourage charitable giving?

Answer 6

Income tax deductions for gifts.

Question 7

True or False: A nonprofit classified as a 501(c)(3) cannot generate any profits for the organization.

Answer 7

False

Question 8

True or False: Increased government spending on social programs in the 1960s under president Lyndon B. Johnson’s administration led to the dramatic growth in the nonprofit sector.

Answer 8

True

Question 9

True or False: Religious organizations are not considered charitable nonprofits by the IRS.

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 that 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 and activities.

Question 13

A nonprofit that qualifies under section 501(c)(3) must limit its expenditures on __________.

Answer 13

Lobbying

Question 14

The IRS classifies social welfare organizations as a ___________.

Answer 14

501(c)(4)

Question 15

Salamon’s anatomy classifies nonprofit organizations by ____________.

Answer 15

Who receives the principle benefit of their activities.

Question 16

The two spectrums that define a social enterprise are __________.

Answer 16

Philanthropic and Commercial

Question 17

True or False: A nonprofit classified as a 501(c)(3) cannot support a candidate running for office.

Answer 17

True

Question 18

Sociologists describe nonprofits as ____________.

Answer 18

Mediating structures

Question 19

What their attributes the existence of nonprofit organizations as filling a gap left by the market and 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

True or False: 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

True or False: The IRS does not allow nonprofits to undertake experimentation concerning the development of new programs.

Answer 23

False

Question 24

True or False: 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 are used as gap fillers to compensate for failures of ____________.

Answer 25

The free market and government.

Question 26

Salamon identifies nonprofits as ___________.

Answer 26

Self-governing

Question 27

Nonprofit organizations are driven by _____________.

Answer 27

The achievement of their mission

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 dependence

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

True or False: The term”open system” means organizations interact with their external environment.

Answer 33

True

Question 34

Effective chief executive officers focus on _________.

Answer 34

Key goals, resources, and strategy.

Question 35

Leaders who use a political frame are __________.

Answer 35

Comfortable with the fact that interests differ and conflict

Question 36

Which organizational model places the board at the top of the hierarchy and the CEO as an agent?

Answer 36

Board certified leadership

Question 37

The founder found it difficult to turn management of the nonprofit over to a new CEO. The founder was demonstrating __________ syndrome.

Answer 37

Founder

Question 38

True or False: A CEO’s responsibilities include managing and leading the organization.

Answer 38

True

Question 39

True or False: One responsibility of the CEO is to select new members of the board of directors.

Answer 39

False

Question 40

The effective leader, as defined by Human Resource Frame, searches for the 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 feelings.

Answer 40

True

Question 41

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

Answer 41

False