Nonprofit Business

A great way to obtain a job or a scholarship is to prove that you have volunteered your time / effort for a nonprofit.

• True

• False

The best definition of a nonprofit business:

• An organization that uses all profits to pay out dividends.

• An organization that uses donations to pay volunteers.

• An organization that uses profits (or surplus revenues) to reach a goal or goals instead of distributing them to shareholders.

• An organization that convinces the government to change a policy.

Sources that fund a nonprofit business:

• direct mail and phone calls

• social media

• fund raising events (dinners, speakers, athletic events)

• all of these answer are correct

• website donations

Nonrprofit businesses are effective ways to make changes in a community or culture.

• True

• False

Which of the following is NOT a unique characteristic of a nonprofit business?

• Tax exempt (do not have to pay taxes)

• Donations to the nonprofit are tax deductible

• Cannot lobby lawmakers, use propaganda, or endorse candidates

• Cannot give income to individuals other than regular salaries

For a business to be a nonprofit, it must have a ___ purpose/ mission.

• religious / faith based

• educational

• health

• all of these purposes are correct

Who can give legal donations / funds to a nonprofit business?

• bequests by deceased individuals' estate or will

• living individuals who can receive a tax credit from their donation

• corporations and other businesses

• grants

• all of these answers are correct

The stated purpose and reason for the nonprofit's existence is the...

• brand

• mission statement

• audit

• donation

The goal of the nonprofit business for the next five to ten years is the...

• brand

• mission statement

• audit

• vision

The process of an outside agency or organization checking the truthfulness of their payments and donations is...

• the vision

• an audit

• the mission

• the brand