CERTIFIED NONPROFIT MANAGEMENT
PROFESSIONAL EXAM QUESTION AND
CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2026 Q&A
INSTANT DOWNLOAD PDF
1. What is the primary purpose of a mission statement?
A. To set fundraising goals
B. To articulate the organization’s purpose and direction
C. To list board member duties
D. To describe program logistics
Rationale: A mission statement defines why the organization exists and
guides strategy.
2. Which financial document shows revenues and expenses over a period?
A. Balance sheet
B. Cash flow statement
C. Statement of activities
D. Budget forecast
Rationale: In nonprofit accounting, the statement of activities reflects
revenues and expenses.
3. What is “mission drift”?
A. When the mission grows stronger
B. When an organization moves away from its core mission
C. When staff leave mid-year
D. When programs are overfunded
Rationale: Mission drift refers to losing focus on core purpose.
,4. A SWOT analysis includes strengths, weaknesses, opportunities, and:
A. Tactics
B. Targets
C. Threats
D. Timelines
Rationale: SWOT stands for Strengths, Weaknesses, Opportunities,
Threats.
5. What is the role of a board of directors?
A. Daily operations
B. Governance and strategic oversight
C. Managing volunteers
D. Grant writing
Rationale: Boards provide governance, not daily management.
6. Fund accounting is primarily used to:
A. Maximize profits
B. Track restricted and unrestricted funds
C. Minimize expenses
D. Report to shareholders
Rationale: Nonprofits must segregate funds based on restrictions.
7. Which tool helps identify desired outcomes and the steps to achieve them?
A. Logic model
B. Balance scorecard
C. Theory of Change
D. Cash flow model
Rationale: Theory of Change maps activities to outcomes.
8. What is a case statement?
A. Legal filing
B. Fundraising document explaining need and impact
C. Volunteer contract
D. Financial audit
Rationale: A case statement makes the case for support.
, 9. What is the purpose of donor stewardship?
A. To solicit new donors only
B. To maintain and deepen donor relationships
C. To audit donations
D. To publish financials
Rationale: Stewardship focuses on ongoing engagement.
10.Which fundraising method relies on personal solicitation from board
members?
A. Direct mail
B. Major gifts
C. Online giving
D. Events
Rationale: Major gifts often involve personal outreach.
11.What does ROI stand for in program evaluation?
A. Return on Investment
B. Return on Initiatives
C. Return on Impact
D. Rate of Increase
Rationale: In nonprofit evaluation, ROI can reflect impact relative to
investment.
12.An unrestricted fund can be used for:
A. Only program expenses
B. Only administration
C. Any organizational need
D. Only capital projects
Rationale: Unrestricted funds are flexible.
13.What is ethical fundraising?
A. Only soliciting large donors
B. Always offering incentives
C. Respecting donor intent and transparency
PROFESSIONAL EXAM QUESTION AND
CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2026 Q&A
INSTANT DOWNLOAD PDF
1. What is the primary purpose of a mission statement?
A. To set fundraising goals
B. To articulate the organization’s purpose and direction
C. To list board member duties
D. To describe program logistics
Rationale: A mission statement defines why the organization exists and
guides strategy.
2. Which financial document shows revenues and expenses over a period?
A. Balance sheet
B. Cash flow statement
C. Statement of activities
D. Budget forecast
Rationale: In nonprofit accounting, the statement of activities reflects
revenues and expenses.
3. What is “mission drift”?
A. When the mission grows stronger
B. When an organization moves away from its core mission
C. When staff leave mid-year
D. When programs are overfunded
Rationale: Mission drift refers to losing focus on core purpose.
,4. A SWOT analysis includes strengths, weaknesses, opportunities, and:
A. Tactics
B. Targets
C. Threats
D. Timelines
Rationale: SWOT stands for Strengths, Weaknesses, Opportunities,
Threats.
5. What is the role of a board of directors?
A. Daily operations
B. Governance and strategic oversight
C. Managing volunteers
D. Grant writing
Rationale: Boards provide governance, not daily management.
6. Fund accounting is primarily used to:
A. Maximize profits
B. Track restricted and unrestricted funds
C. Minimize expenses
D. Report to shareholders
Rationale: Nonprofits must segregate funds based on restrictions.
7. Which tool helps identify desired outcomes and the steps to achieve them?
A. Logic model
B. Balance scorecard
C. Theory of Change
D. Cash flow model
Rationale: Theory of Change maps activities to outcomes.
8. What is a case statement?
A. Legal filing
B. Fundraising document explaining need and impact
C. Volunteer contract
D. Financial audit
Rationale: A case statement makes the case for support.
, 9. What is the purpose of donor stewardship?
A. To solicit new donors only
B. To maintain and deepen donor relationships
C. To audit donations
D. To publish financials
Rationale: Stewardship focuses on ongoing engagement.
10.Which fundraising method relies on personal solicitation from board
members?
A. Direct mail
B. Major gifts
C. Online giving
D. Events
Rationale: Major gifts often involve personal outreach.
11.What does ROI stand for in program evaluation?
A. Return on Investment
B. Return on Initiatives
C. Return on Impact
D. Rate of Increase
Rationale: In nonprofit evaluation, ROI can reflect impact relative to
investment.
12.An unrestricted fund can be used for:
A. Only program expenses
B. Only administration
C. Any organizational need
D. Only capital projects
Rationale: Unrestricted funds are flexible.
13.What is ethical fundraising?
A. Only soliciting large donors
B. Always offering incentives
C. Respecting donor intent and transparency
