Deck 6: Ensuring Accountability and Measuring Performance

Question 1

Whose Standards for Excellence in nonprofit management has become a model for other similar associations across the country?

A) Independent Sector
B) BoardSource
C) The Maryland Association of Nonprofit Organizations
D) The Panel of the Nonprofit Sector

Answer 1

C

Question 2

Which government entity grants nonprofits their charters?

A) The federal government
B) State governments
C) County governments
D) City governments

Answer 2

B

Question 3

This concept adds social return to financial return in order to generate a single dollar amount that could be used as an indicator of the organization's performance and value.

A) Social return on investment
B) Statistical benchmarking
C) Blended value
D) Corporate benchmarking

Answer 3

A

Question 4

Leading thought in the field of measuring performance of nonprofits appears to be moving away from an emphasis on the organization's:

A) ability to accomplish its stated mission.
B) participation in accreditation programs.
C) ability to compete in the nonprofit sector.
D) financial ratios.

Question 5

Nonprofit managers should be committed to performance measurement but:

A) should not become overly focused on it to the detriment of their mission.
B) should be aware that they might be using the wrong measurement tool.
C) not if it takes too long to implement.
D) not to accountability measures.

Question 6

Which assessment tool is meant to determine an organization's success in accomplishing its mission, or program effectiveness?

A) Cost-benefit analysis
B) Financial ratio approach
C) Outcomes approach
D) Peer analysis

Question 7

Many nonprofits have voluntarily adopted provisions as a way to assure their donors that they are operating with high integrity, transparency, and sound governance.

A) IRS
B) Pension Protection Act
C) NAFTA
D) Sarbanes-Oxley

Question 8

A variation of the balanced scorecard designed specifically for nonprofits, which asks, "Does it work?" and "Is the organization well run?" is a(n):

A) dashboard.
B) e-Postcard.
C) effectiveness scorecard.
D) balance sheet.

Question 9

According to blended value theorists, value should be thought about as having three components: economic value, social value, and:

A) spiritual value.
B) educational value.
C) artistic value.
D) environmental value.

Question 10

In its proper definition, this term involves comparisons among organizations, either at the macro or at the micro level.

A) Benchmarking
B) Performance evaluations
C) Accreditation
D) Cost-benefit analysis

Question 11

A theoretical explanation of the links all the way through a process is called a(n):

A) status update.
B) activity-based profitability model.
C) balanced scorecard.
D) logic model.

Question 12

If an organization wanted to help highlight its strengths or weaknesses for further analysis, which technique would be most useful?

A) Peer analysis
B) Statistical benchmarking
C) Common indicators
D) Corporate benchmarking

Question 13

This proposition states that all organizations create value that consists of economic, social, and environmental value components, and that investors simultaneously generate all three forms of value through providing capital to organizations.

A) Simultaneous value
B) Blended value
C) Performance value
D) Capital value

Question 14

This entity, formed in 2001, provides standards for nonprofits that are among the best known and most widely cited in the news media.

A) The Wise Giving Alliance
B) Independent Sector
C) The Finance Committee of the U.S. Senate
D) Charity Navigator

Question 15

A nonprofit organization has placed an equal employment opportunity statement on all its organization's promotional materials. The organization is demonstrating:

A) accountability.
B) performance.
C) effectiveness.
D) efficiency

Question 16

This concept was developed as a way for businesses to obtain a balanced perspective on performance by combining financial data with other considerations. A. Financial ratios
B) Balanced scorecard
C) Common indicators
D) Cost-benefit analysis

Question 17

In 2004, the Urban Institute and the Center for What Works undertook a project to identify a that nonprofits could use to inform practice and that would be practical to implement.

A) balanced scorecard analysis
B) three-dimensional chart
C) common set of outcomes and outcomes indicators
D) youth-mentoring project

Question 18

A method that many nonprofits use to determine whether specific programs are effective in achieving their goals and objectives is called:

A) effectiveness evaluation.
B) inputs.
C) statistical benchmarking.
D) program evaluation.

Question 19

One disadvantage of SROI is that:

A) it does not measure the financial benefit of certain programs.
B) it cannot be used with intangible information.
C) the analysis process is resource intensive.
D) it provides too much information to easily filter.

Question 20

Very high may suggest that an organization is inefficient, or even participating in unethical or fraudulent behavior.

A) service fees
B) staff salaries
C) fund-raising costs
D) standards

Question 21

How much a nonprofit spends on fundraising is a method of financial performance measurement.

Question 22

A nonprofit organization developed a dashboard that integrates internal and external variables that influence program performance. The organization is using which measure of performance?

A) Inputs
B) Accountability
C) Balanced Scorecard
D) Production

Question 23

Benchmarking is a way for nonprofits to compare themselves among other similar organizations.

Question 24

There are specific "best practices" standards that are required of all nonprofit organization in the United States.

Question 25

The Better Business Bureau has a mechanism that can prescribe how a nonprofit should conduct business.

Question 26

Name and explain the three principal mechanisms by which nonprofits are held accountable.

Question 27

The CEO of a nonprofit organization is conducting a study comparing the costs of conducting a fundraising program to the amount of funds raised. The CEO is conducting a(an):

A) benchmarking program.
B) dashboard analysis.
C) a logic model.
D) a cost-benefit analysis.

Question 28

A CEO of a nonprofit organization is electronically filing a notice to inform the Internal Revenue Service the organization exists. The CEO is filing a(an):

A) Form 1024
B) e-Postcard.
C) intent to incorporate.
D) common indicator.

Question 29

SROI stands for "standard run on inventory."

Question 30

A private sector corporation is making a large donation to a nonprofit organization in order to demonstrate community support. This is an example of:

A) a financial ratio.
B) a logic model.
C) impact investing.
D) self-regulation.

Question 31

Another name for statistical benchmarking is:

A) a logic model.
B) a financial ratio.
C) a dashboard.
D) a comparative performance measurement.

Question 32

The logic model is a method for measuring a nonprofit's financial management capabilities.

Question 33

As a result of his participation in a nonprofit organization's program to assist underserved youth, Greg graduated from college. This is an example of a(an):

A) input.
B) activity.
C) common indicator
D) outcome.

Question 34

A board of directors has hired a consultant to evaluate their nonprofit organization's legal compliance. According to Patton's dashboard, the nonprofit is assessing the organization's:

A) assets.
B) results.
C) risks.
D) change.

Question 35

__________ is what gets created when investors invest and organizations act to pursue their mission.

A) Value
B) Accountability
C) Goal displacement
D) Cost-benefit

Question 36

Performance measurement is one of the ways a nonprofit can ensure it is achieving its mission.

Question 37

Requirements of the law include the Sarbanes-Oxley Act and the Pension Protection Act of 2006.

Question 38

A certificate or "seal of approval" by a charity watchdog tells potential donors that your nonprofit is beyond reproach.

Question 39

An organization's financial results are an example of:

A) legal risk.
B) effectiveness.
C) accomplishment.
D) applying logic.

Question 40

Accountability means taking responsibility for your actions.

Question 41

Identify the components of the McKinsey and Company assessment model for nonprofit organizations and apply each of the components to a nonprofit organization that you are familiar with.

Question 42

Explain the advantages and disadvantages of applying a financial ratio performance assessment model.

Question 43

Examine and explain the benefits of participating in a best practice accreditation program.

Question 44

Analyze the four key variables of the United Way outcomes model.

Question 45

Differentiate the different types of watchdog organizations that proactively examine nonprofit organizations. Are their effects mostly positive or negative? Why?

Question 46

Draw a basic logic model for a program that is offered by a nonprofit organization that you are familiar with. Explain and label each part of your model.

Question 47

Compare and contrast the terms effectiveness and efficiency.

Question 48

Determine the four categories into which the Principles for Good Governance and Ethical Practice are divided.

Question 49

Identify the four perspectives from which a balanced scorecard looks at an organization. Explain pros and cons of using these four perspectives, as discussed in text.