Zimmerman Lehman : Test Your Nonprofit I.Q.

• TEST YOUR
NONPROFIT IQ

Test Your Nonprofit I.Q.

Quiz Answers:

1) When faced with declining revenues, nonprofits should do all of the following except which one?

a) Make marketing and public relations a high priority in order not to be a "best-kept secret."
b) Put off hiring new development staff until times are better.
c) Bring new members onto the board of directors who can help turn the tide.
d) Approach volunteers for financial contributions.

Answer: b
While it is tempting for nonprofits to hoard their funds in hard times, it is extremely unwise to refrain from hiring much-needed development staff. Tough times require nonprofits to "prime the pump," and there's no better way to do so than by hiring qualified, experienced development staff. For more information see our article Unclear on the Concept: Downsizing Your Development Staff During the Economic Downturn.

2) Who donated the most money in the US to nonprofits last year?

a) Foundations
b) Corporations
c) Live Individuals
d) Deceased Individuals (Bequests)

And if that is too easy, can you estimate the percentages each gives?

Answer: c
A total of $306 billion was contributed to nonprofits in 2007. Individuals gave 75% or $229 billion. Another 7.5 % or $23 billion was donated through bequests (i.e. dead people) for a total of 82.5% or $252 billion by individuals alive and dead. Foundations gave only 12.5% or $38.5 billion and corporations gave 5% or $16 billion. Even in the midst of the rececssion the 2009 donations to US nonprofits was $304 billion. For more information see our article "The Importance of Individual Giving".

3) Assuming a midsize nonprofit with development staff, which of the following is NOT a Board member's fundraising responsibility?

a) To make a financial contribution to the extent of his or her capacity.
b) To solicit contributions from his or her friends, relatives and colleagues.
c) To assist with recruitment of new board members with the clout and connections to ensure the success of the fundraising effort.
d) To draft a grant proposal to a foundation where a colleague sits on the board.

Answer: d
Board members should not be expected to draft grant proposals; that is the job of the development staff. However, if they know board members of the foundation they can and should place a call letting them know an organization of which they sit on the board is submitting a proposal. All the other options are part of the board members' responsibilities. For more information on board fundraising responsibilities see our article "Boards That Love Fundraising: Specific Responsibilities".

4) Fears expressed by some board members about asking for financial contributions include all of the following except:

a) Embarrassment
b) Being "asked back" by the person whose gift the board member is seeking
c) Not being "rational" enough
d) Rejection
e) Stock market doldrums

Answer: c
In fact, board members fear being too emotional, thinking that they can simply make the case with a dry recitation of facts and figures. Not so! For more information on board members' fears, see our article "Getting People to Ask for $$".

7) What types of professions can help your board with its development efforts?

a) Making sure all your board meetings are open to the public
b) Ensuring that the budget adds up correctly
c) Making sure your board members have liability insurance
d) Ensuring the public that your overhead percentages are reported accurately

a) Vision
b) Humor
c) Emotional Intelligence
d) Trustworthiness

Answer: c
One new trait, a current buzz phrase that was just coming on the scene ten years ago, is EMOTIONAL INTELLIGENCE (EI). Some call this a "gut instinct or an innate sense about what others are feeling." It used to be called empathy or intuition but now google EI and you get over one million hits. "EI" includes identifying, using, understanding and managing emotions. Both Oprah and Madonna can read a crowd like no one else and their EI is part of what makes them both successful. Being able to read people (know what they want or need) is invaluable. Those million hits will tell you that if your are not born with this instinct you can learn it! For more information on leadership characteristics see our article Eight Characteristics of Leadership.

11) In choosing a chair of your organization's capital campaign committee, what should be your priority?

a) A current board member with good connections in the community.
b) A representative of the client community served by your nonprofit.
c) A current board member who gets along well with people and loves "glad-handing."
d) A volunteer who is not a board member and who has his/her own financial resources and good community connections.

Answer: d
In most cases, it is advisable to ask someone who is not currently on your board to serve as capital campaign committee chair. This person must have substantial financial resources himself/herself, community "clout," and the willingness to serve as "point person" for the campaign. For more information see our article, Capital Campaigns: Ten Steps To Success.

12) Which of these is not a good tip for grantwriting?

a) Pay more attention to describing your program than your philosophy.
b) Have the executive director or board chair sign every letter of inquiry or proposal.
c) Don't repeat the grantor's language concerning their priorities, since every grantor knows what it wants.
d) Spend at least as much time on developing the budget as on writing the proposal.

Answer: c
c) Make it easy for the foundation to see that your program matches their priorities by telling them that it does: "Our program matches all three of the ABC Foundation's interests because it is (a) preK-12 education targeting (b) children/youth at risk with (c) a focus on literacy." In fact you should echo the foundation's language. Read through the annual report to learn preferred phrases. For example, use the phrase "pre-K education" or "infant and toddler education", whichever they use. Use "conservation" or "environment," whichever they do. For more tips on grantwriting see TEN TIPS FOR GRANTWRITING.

13) Which of the following questions should be answered yes before you initiate a capital campaign?

Answer: C ZimNotes readers know that a recent study said, "People who donate their dollars to nonprofits or splurge on gifts for others are more content than those who squander all the dough on themselves." There is a wealth-happiness connection but apparently it is weaker than the lasting cheer that comes from giving to others. Another study indicating that giving reduces the odds of an early death by nearly 60% compared with those who didn't lend a helping hand. For further information read "Giving Makes You Happy & Healthy!"

15) Which one below is not part of being a strategic advocate as a board member?

a) Members asks deliberate questions about the end results you are looking for on any given issue.
b) It includes engaging the entire board in lively discussions about options and actions.
c) You use your legal skills on behalf of your board.
d) It involves developing policies and actions that further the mission and vision of the organization

Answer: c
All of the answers except #c are part of being a strategic advocate. While having lawyers on your board may help, anyone can be a strategic advocate. You don't need to go to law school first. It is more of a framing issue for your role as a board member. Board members need to think strategically and advocate on behalf the organization whose board they sit on, as well as the community they come from and the constituency you serve. For more information on being a strategic advocate see "How Can A Board Member Be A Strategic Advocate For Your Nonprofit?"

16) Who said, "Sunlight is the best disinfectant?" And a bonus point if you know how this relates to nonprofits.

a) Well known commercial for Ajax
b) Justice Louis Brandeis
c) President Barack Obama
d) Columnist Arianna Huffington
e) Business Mogul Warren Buffett
f) The Divine Bette Midler

Answer: b

U.S. Supreme Court Justice Louis Brandeis. He was refering to the benefits of honesty and transparency - a concept near and dear to the both the government and the nonprofit sector. If you like quizzes, see our 20 question quiz on Accountability, Transparency & Ethics and review of best practices in the areas. P.S. President Obama did give a speech with this title but he was quoting Brandeis.

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