Nonprofit Management Principles and

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 Nonprofit Management 3e
Michael J. Worth
Instructor Resource

Chapter 8 – Capacity and Collaboration

TEST BANK

Multiple-Choice Questions

1. Without building , organizations cannot grow successful programs to a larger

scale, thus limiting their impact.
a. revenue
*b. capacity
c. facilities
d. morale

2. In 2009, capacity-building receive a new boost when the U.S. Congress passed this, which
included a Nonprofit Capacity Building program to provide grants for organizational development
to small and mid-sized nonprofits over the years 2010 to 2014.
a. Patriot Act
b. Sarbanes-Oxley Act
c. Nonprofit Integrity Act
*d. Serve America Act

3. Paul Light defines this as “everything an organization uses to achieve its mission, from desks and
chairs to programs and people.”
*a. capacity
b. programming
c. program load
d. facilities

4. The term that is defined as the ability to learn as an organization and identify ways to improve, to
change in response to client needs, to create new and innovative programs, and to create an
environment that is motivating to staff and volunteers is
a. program delivery capacity.
*b. adaptive capacity.
c. program expansion capacity.
d. capacity building.

5. Establishing a system for would add to an organization’s program

delivery capacity.
a. training up-and-coming executives
*b. the regular evaluation of programs
c. professional association requirements
d. fund-raising training programs

6. What does McKinsey & Company call the “invisible thread that runs throughout the entire
subject of capacity building”?
*a. An organization’s culture
b. An organization’s aspirations
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 Nonprofit Management 3e
Michael J. Worth
Instructor Resource

c. An organization’s strategies
d. Organizational skills

7. According to Simon’s concept of life stages of an organization, what is the last stage?
a. Produce and sustain
b. Imagine and inspire
c. Ground and grow
*d. Review and renew

8. The capacity-building activities undertaken vary according to the organization’s

a. training capabilities.
b. board size.
*c. size and age.
d. diversity.

9. What shape does Light use to explain his organizational life cycle theory?
a. Pyramid
*b. Spiral
c. Ladder
d. Circle

10. In 2009, a survey by the Bridgespan Group found that nonprofits was
considering a merger.
*a. 1 in 5
b. 1 in 10
c. 1 in 100
d. 1 in 1,000

11. Activities undertaken by two or more nonprofits that are more than informal collaboration but
stop short of corporate integration are
a. mergers.
b. strategic restructuring.
c. partnerships.
*d. strategic alliances.

12. These types of relationships imply increasingly less autonomy for participating organizations
and may include parent–subsidiary partnerships, joint venture corporations, management service
organizations that support one or more nonprofits, and—ultimately—mergers.
a. Administrative consolidations
b. Joint programming
*c. Corporate integrations
d. Restructuring partnerships

13. A generic term that encompasses any relationship in which two or more independent
organizations work together toward common objectives is
*a. collaboration.
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 Nonprofit Management 3e
Michael J. Worth
Instructor Resource

b. partnership.
c. merger.
d. communication.

14. For nonprofits, relationships undertaken primarily to are more likely to be

successful than those undertaken solely for financial reasons or as a response to pressure from
funders.
a. gain media attention
b. recruit potential volunteers
*c. advance the mission
d. receive outside management assistance

15. Successful collaboration between or among nonprofit organizations must be built on a

foundation of
a. financial strength.
b. capacity.
*c. trust.
d. creative talent.

16. Collaborations and mergers between nonprofits whose missions, operational style,
constituencies, or geographic proximities are similar are than those with a lesser
level of relatedness.
a. less likely to succeed
*b. more likely to succeed
c. shorter lived
d. longer lived

17. Collaborations or mergers that combine units within a single corporate entity are called
a. joint mergers.
b. intermergers.
*c. intramergers.
d. corporate integrations.

18. National nonprofits with local chapters follow one of two principal organization forms: a single
corporation or a(n)
a. strategic alliance.
b. venture philanthropy.
c. amalgamation.
*d. federation.

19. Mergers of chapters within a federated organization are

*a. intermergers.
b. intramergers.
c. corporate takeovers.
d. not possible.

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 Nonprofit Management 3e
Michael J. Worth
Instructor Resource

20. As the economy improves, probably returning ultimately to a higher level of prosperity,
pressures for nonprofits to collaborate and merge
a. will likely start to fall.
*b. are not likely to abate.
c. will likely skyrocket.
d. will likely force many nonprofits to seek government bailouts.

True/False Questions

21. In recent years there has been a transition from replicating programs to building strong nonprofit
organizations that can sustain them.
*a. True
b. False

22. One of the problems with traditional models of grant making has been that they encourage
nonprofits to keep overhead costs high.
a. True
*b. False

23. The lack of capacity has the potential to undermine the effectiveness of programs over the long
run.
*a. True
b. False

24. Capacity is everything an organization uses to achieve its mission with the exception of the staff
and volunteers.
a. True
*b. False

25. Capacity is only important at the beginning of a nonprofit’s organizational life cycle.
a. True
*b. False

26. An organization that is building its foundation and growing is considered to be in the “ground
and grow” stage in the life cycle of nonprofit organizations.
*a. True
b. False

27. Collaboration is when two or more organizations work together toward common objectives.
*a. True
b. False

28. When two nonprofit organizations merge, they each keep their own identity and status.
a. True
*b. False

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Michael J. Worth
Instructor Resource

29. One of the significant obstacles to successful collaboration is culture.

*a. True
b. False

30. The combining of units within a single corporate entity is called an “intramerger.”
*a. True
b. False

Short Answer and Essay Questions

31. List the five elements of capacity as given by Connolly and Lukas.
Ans: Varies

32. What does the organization of the McKinsey & Company comprehensive capacity framework in
the form of a pyramid imply about the elements included?
Ans: Varies

33. According to Simon’s concept of life stages of an organization, what may happen to an
organization that fails to move to the stage of “review and renew”? Why?
Ans: Varies

34. In the debate about consolidation of the nonprofit sector, what is the alternative to nonprofit
mergers that La Piana suggests?
Ans: Varies

35. List and describe two (2) of the most common issues in a merger and discuss how a nonprofit
might minimize those issues in a merger situation.
Ans: Varies

36. In the discussion of collaborations, what is a driver, and what are the two types of driver?
Ans: Varies

37. Why would a nonprofit with more diversified sources of revenue be less inclined to collaborate
or merge?
Ans: Varies

38. What are the three driving forces of an organization’s proclivity to collaborate or merge,
according to McCormick?
Ans: Varies