CNP STUDY GUIDE | 2026 UPDATE | QUESTIONS
AND ANSWERS | WITH COMPLETE SOLUTION
Which of the following does NOT describe a Theory of Change model? Answer
- A program that can only be designed by a specialist in evaluation, such as a
university professor.
What is the purpose of Sunshine Laws? Answer - To promote and enforce
accountability and transparency in decision making related to the expenditure
of public funds.
L3Cs are a newer type of incorporation for organizations that want to engage in
political advocacy and lobbying. Answer - False
Nonprofit organization leaders should always broaden their missions to
accommodate the particular grantmaking interests of funders. Answer - False
Researching programs addressing similar issues in other communities is not a
good use of time during the program development process. Answer - False
Needs assessment strategies are often conducted in the early stages of
program design. The purpose of a needs assessment is about understanding
the challenges or needs facing a community. Answer - True
Nonprofit organizations are typically created by a set of individuals who
identify a common need or interest. Their ability to define what the group
,wants to do in terms of mission and vision is the first step on the road to
organization incorporation or chartering. Answer - True
Board members are volunteers; therefore, accepting anyone who is willing to
serve is the best strategy for a nonprofit organization. Answer - False
Nonprofit financial managers must manage the organization's cash flow. What
does cash flow track? Answer - Cash receipts minus cash payments
Accounting is: Answer - recording, classifying, and summarizing transactions of
a financial nature
You are the new Director of Marketing for Stronger Communities, a local
nonprofit organization. On your first day, the Executive Director tells you that
your first task is to rebrand the organization with a new logo, change the color
palette, and all collateral materials. A small budget has been allocated for
printing of new materials. Since the budget is allocated, the organization is
clearly ready for the rebranding process. Answer - False
A nonprofit organization may choose to keep extra cash on hand to maintain
adequate cash balances when inflows and outflows of money are not well
synchronized. Answer - True
Which of the following is not a description of the changing face of international
development by nongovernmental organizations? Answer - Technology has
made communication around the world more difficult
Affirmative Action includes steps to increase representation of women and
minorities through recruitment. Answer - True
, Which of the following statements best describes an understanding of the
basics of grant writing? Answer - Each foundation has its own individual grant
guidelines
While nonprofit marketing efforts can reach many audiences, which audience is
most important to target? Answer - The audience who is most likely to take
action
Nonprofit organizations can be more effective by focusing on service provision
rather than examining external influences such as political, economic and social
changes. Answer - False
What of the following is typically a responsibility of the board of directors:
Answer - Recruiting, hiring, and evaluating the Executive Director.
Charitable nonprofit organizations are prohibited from participating in any form
of political activity, including lobbying. Answer - False
Which of the following is true about social media? Answer - Your subject line
and topic provoke (or hinder) open rates
Now is the Time, a growing national nonprofit organization, understands the
important role of marketing for successful mission implementation. Which of
the following is NOT within the scope of marketing? Answer - Volunteer
management
Which of the following is the window into the fiscal heart of a nonprofit
organization? Answer - Statement of Financial Position
AND ANSWERS | WITH COMPLETE SOLUTION
Which of the following does NOT describe a Theory of Change model? Answer
- A program that can only be designed by a specialist in evaluation, such as a
university professor.
What is the purpose of Sunshine Laws? Answer - To promote and enforce
accountability and transparency in decision making related to the expenditure
of public funds.
L3Cs are a newer type of incorporation for organizations that want to engage in
political advocacy and lobbying. Answer - False
Nonprofit organization leaders should always broaden their missions to
accommodate the particular grantmaking interests of funders. Answer - False
Researching programs addressing similar issues in other communities is not a
good use of time during the program development process. Answer - False
Needs assessment strategies are often conducted in the early stages of
program design. The purpose of a needs assessment is about understanding
the challenges or needs facing a community. Answer - True
Nonprofit organizations are typically created by a set of individuals who
identify a common need or interest. Their ability to define what the group
,wants to do in terms of mission and vision is the first step on the road to
organization incorporation or chartering. Answer - True
Board members are volunteers; therefore, accepting anyone who is willing to
serve is the best strategy for a nonprofit organization. Answer - False
Nonprofit financial managers must manage the organization's cash flow. What
does cash flow track? Answer - Cash receipts minus cash payments
Accounting is: Answer - recording, classifying, and summarizing transactions of
a financial nature
You are the new Director of Marketing for Stronger Communities, a local
nonprofit organization. On your first day, the Executive Director tells you that
your first task is to rebrand the organization with a new logo, change the color
palette, and all collateral materials. A small budget has been allocated for
printing of new materials. Since the budget is allocated, the organization is
clearly ready for the rebranding process. Answer - False
A nonprofit organization may choose to keep extra cash on hand to maintain
adequate cash balances when inflows and outflows of money are not well
synchronized. Answer - True
Which of the following is not a description of the changing face of international
development by nongovernmental organizations? Answer - Technology has
made communication around the world more difficult
Affirmative Action includes steps to increase representation of women and
minorities through recruitment. Answer - True
, Which of the following statements best describes an understanding of the
basics of grant writing? Answer - Each foundation has its own individual grant
guidelines
While nonprofit marketing efforts can reach many audiences, which audience is
most important to target? Answer - The audience who is most likely to take
action
Nonprofit organizations can be more effective by focusing on service provision
rather than examining external influences such as political, economic and social
changes. Answer - False
What of the following is typically a responsibility of the board of directors:
Answer - Recruiting, hiring, and evaluating the Executive Director.
Charitable nonprofit organizations are prohibited from participating in any form
of political activity, including lobbying. Answer - False
Which of the following is true about social media? Answer - Your subject line
and topic provoke (or hinder) open rates
Now is the Time, a growing national nonprofit organization, understands the
important role of marketing for successful mission implementation. Which of
the following is NOT within the scope of marketing? Answer - Volunteer
management
Which of the following is the window into the fiscal heart of a nonprofit
organization? Answer - Statement of Financial Position
