Question 1

Before entrepreneurship became a major factor in the accomplishment of social goals, the delivery of social services was largely accomplished by tax-exempt organizations labeled "charities" or "charitable organizations."

Accepted Answer

Before entrepreneurship became a major factor in the accomplishment of social goals, the delivery of social services was largely accomplished by tax-exempt organizations labeled "charities" or "charitable organizations."

Question 2

In the 1980s the rolling back of federal government responsibility and funding for charitable work responsibilities for many social services were transferred to the local level and this decreased the demand for social services.

Accepted Answer

The rolling back of federal government responsibility and funding for charitable work in the 1980s actually increased the demand for social services at the local level because there was less funding available for these services.

Question 3

One of the chief advantages of adopting the nonprofit structure is the multiple options it affords for generating revenue because it provides the ability to produce earned income, within the limits, but it makes the social venture eligible to receive philanthropic dollars.

Accepted Answer

The statement is true. Nonprofit organizations can generate revenue through earned income, such as selling products or services, and are also eligible to receive philanthropic donations.

Question 4

If a nonprofit is found to be engaged in revenue-generating activity that does not meet the operational test, the earnings from that activity are subject to the Unrelated Business Income Tax (UBIT).

Accepted Answer

If a nonprofit is found to be engaged in revenue-generating activity that does not meet the operational test, the earnings from that activity are subject to the Unrelated Business Income Tax (UBIT).

Question 5

One of the chief advantages of adopting the nonprofit structure is the multiple options it affords for generating revenue such as the ability to produce unlimited earned income and it makes the social venture eligible to receive federal funding.

Accepted Answer

The answer of One of the chief advantages of adopting...

Question 6

Corporate giving offices have long supported charitable activity in the community or communities where these businesses operate by providing large grants for the purposes of receiving tax write-offs and generating goodwill among customers and prospective customers.

Accepted Answer

The answer of Corporate giving offices have long supported charitable...

Question 7

A number of government agencies have made grants to nonprofit ventures to develop business incubators to encourage entrepreneurship among economically disadvantaged groups; however, the grants are typically only for the bricks and mortar aspects of the incubator and not for covering the incubator's expenses for developing entrepreneurs and companies.

Accepted Answer

The statement correctly describes that government grants for business incubators typically only cover the physical infrastructure and not the expenses related to developing entrepreneurs and companies.

Question 8

Philanthropy via the Internet has grown rapidly in recent years and this so-called e-philanthropy has provided a new way for nonprofits to interact with their donors.

Accepted Answer

The statement is true, as e-philanthropy has indeed grown rapidly in recent years, providing new ways for nonprofits to engage with their donors.

Question 9

Fewer and fewer social entrepreneurs who are frustrated by the restrictions of the nonprofit structure and the management vicissitudes of the for-profit structure opt to create hybrid structural models.

Accepted Answer

This statement is not entirely accurate. While it is true that some social entrepreneurs may be frustrated by the limitations of traditional structures, there is still a growing trend towards hybrid models that blend elements of both nonprofit and for-profit structures. These hybrid models, such as B Corps and social enterprises, allow for greater flexibility in achieving social and environmental goals while also generating revenue.

Question 10

In the United States and Canada a new designation, the "community interest company," a for-profit structure that allows for putting a larger share of profits toward a social mission and for reduced compliance with government regulations has been created.

Accepted Answer

In the United States and Canada, the equivalent structure is known as a "benefit corporation" or "B Corp," not a "community interest company," which is a designation specific to the United Kingdom.

Question 11

Most nonprofit parent ventures that establish a for-profit subsidiary own 100 percent of the stock of that subsidiary and thus control the latter's board of directors so both entities can share the same board.

Accepted Answer

While nonprofit parent ventures often own a significant portion of the stock of a for-profit subsidiary, they do not always own 100 percent. The control of the board of directors and the sharing of board members between the nonprofit parent and the for-profit subsidiary can vary based on the specific governance structure and legal requirements, and it is not a given that both entities will share the same board.

Question 12

Nonprofit consortia tend to take one of two legal forms: cooperative ventures or strategic mergers (or consolidations).

Accepted Answer

Nonprofit consortia can take the legal form of cooperative ventures or strategic mergers/consolidations.

Question 13

The best way to combat resistance to merger or consolidation of nonprofit-nonprofit partnerships is to educate the prospective parties to its benefits: integration of services, expansion of client markets, expansion of resource pools, fuller attainment of mission, and survival.

Accepted Answer

Educating the prospective parties to the benefits of merger or consolidation can help combat resistance and increase the likelihood of success.

Question 14

Many nonprofit-for-profit partnerships have a strong marketing component often referred to as cause-related marketing.

Accepted Answer

Cause-related marketing is a common form of nonprofit-for-profit partnerships where the companies use their marketing channels to promote social causes and donate a portion of their profits to the nonprofit organizations.

Question 15

A nonprofit with a strong brand (a name and a mission that are highly recognizable and respected) is not an attractive partner to commercial businesses because they can detract from the mission and marketing of the commercial business.

Accepted Answer

A nonprofit with a strong brand can actually be an attractive partner to commercial businesses, as it can enhance the commercial business's reputation and social responsibility efforts. By partnering with a nonprofit, a commercial business can also potentially attract a new customer base that aligns with the nonprofit's mission and values.

Question 16

The people who use its products, supplies or services own and control the cooperative.

Accepted Answer

Cooperatives are owned and controlled by their members who are the people that use the products, supplies or services.

Question 17

Cooperatives are a new phenomenon.

Accepted Answer

Cooperatives have been around for centuries, with some of the earliest recorded cooperatives dating back to the 18th century.

Question 18

What was a major turning point in the 1980s for the functioning of "charities" or "charitable organizations"?

Accepted Answer

The answer of What was a major turning point in...

Question 19

What are the end points at the Spectrum of Structural Options in Social Entrepreneurship?

Accepted Answer

The answer of What are the end points at the...

Question 20

What are the four types of traditional philanthropy?

Accepted Answer

The answer of What are the four types of traditional...

Quiz 6: Organizational Structure

Before entrepreneurship became a major factor in the accomplishment of social goals, the delivery of social services was largely accomplished by tax-exempt organizations labeled "charities" or "charitable organizations."

In the 1980s the rolling back of federal government responsibility and funding for charitable work responsibilities for many social services were transferred to the local level and this decreased the demand for social services.

One of the chief advantages of adopting the nonprofit structure is the multiple options it affords for generating revenue because it provides the ability to produce earned income, within the limits, but it makes the social venture eligible to receive philanthropic dollars.

If a nonprofit is found to be engaged in revenue-generating activity that does not meet the operational test, the earnings from that activity are subject to the Unrelated Business Income Tax (UBIT).

One of the chief advantages of adopting the nonprofit structure is the multiple options it affords for generating revenue such as the ability to produce unlimited earned income and it makes the social venture eligible to receive federal funding.

Corporate giving offices have long supported charitable activity in the community or communities where these businesses operate by providing large grants for the purposes of receiving tax write-offs and generating goodwill among customers and prospective customers.

Philanthropy via the Internet has grown rapidly in recent years and this so-called e-philanthropy has provided a new way for nonprofits to interact with their donors.

Fewer and fewer social entrepreneurs who are frustrated by the restrictions of the nonprofit structure and the management vicissitudes of the for-profit structure opt to create hybrid structural models.

In the United States and Canada a new designation, the "community interest company," a for-profit structure that allows for putting a larger share of profits toward a social mission and for reduced compliance with government regulations has been created.

Most nonprofit parent ventures that establish a for-profit subsidiary own 100 percent of the stock of that subsidiary and thus control the latter's board of directors so both entities can share the same board.

Nonprofit consortia tend to take one of two legal forms: cooperative ventures or strategic mergers (or consolidations).

The best way to combat resistance to merger or consolidation of nonprofit-nonprofit partnerships is to educate the prospective parties to its benefits: integration of services, expansion of client markets, expansion of resource pools, fuller attainment of mission, and survival.

Many nonprofit-for-profit partnerships have a strong marketing component often referred to as cause-related marketing.

A nonprofit with a strong brand (a name and a mission that are highly recognizable and respected) is not an attractive partner to commercial businesses because they can detract from the mission and marketing of the commercial business.

The people who use its products, supplies or services own and control the cooperative.

Cooperatives are a new phenomenon.

What was a major turning point in the 1980s for the functioning of "charities" or "charitable organizations"?

What are the end points at the Spectrum of Structural Options in Social Entrepreneurship?

What are the four types of traditional philanthropy?