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# The most fundamental decision a nonprofit organization can make is to

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Re: The most fundamental decision a nonprofit organization can make is to [#permalink]
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Easy and Short Passage, got all three correct.

Solution

1)The passage most strongly implies which of the following about clarifying the intended impact of a nonprofit organization's activities?

A) Decision makers must make difficult choices about whether requests from would-be recipients of the organization's services are legitimate. : The passage states that the requests are legitimate, but the resources are not enough
B)The organization will most likely need to narrow its intended activities to a subset of those that its decision makers would like to include. Correct
C)The organization should not try to define in detail the categories of beneficiaries that it intends to serve. The org should try to define
D)To make effective choices about how best to target which needs, the organization may have to exclude some board members or staff from deliberations. Nowhere is this mentioned
E)The organization's leaders often find it unnecessary to decide among beneficiaries' apparently competing needs. They find it necessary but it is hard to do so

Ques 2)Which of the following most accurately states the main idea of the passage?

A) The process of developing an intended-impact statement for a nonprofit organization can be made less difficult by involving all types of stakeholders, including beneficiaries, board members, and staff. : This is a fact mentioned, but isn't the main idea
B) Nonprofit organizations have difficulty meeting all the legitimate needs of their beneficiaries because those needs are greater than the resources available. Same as A. This is a fact, but not the central idea. The passage touches upon what it should do
C) A crucial task that nonprofit organizations' leaders face is determining who the beneficiaries of the organization's services will be and how the benefits are to be delivered. The idea of the passage is more related to impact
D) A nonprofit organization can significantly benefit by defining its mission in order to convince stakeholders, particularly donors, of the importance of the organization's work. This is the first statement but passage goes on to explain more
E) A good definition of a nonprofit organization's intended impact is difficult to develop but can play an integral role in effectively targeting the organization's uses of its resources. Correct

Question 3) Which of the following is most clearly an example of a strong intended-impact statement, as described in the passage?
Solution Lies in the statement : A strong intended-impact statement identifies both the beneficiaries of a nonprofit's activities and the benefits the organization will provide

A) Our organization is an educational nonprofit corporation that seeks to raise awareness about environmentally friendly consumer products.
B)The beneficiaries of our organization are orphans and vulnerable children under the age of 18 in both developing and developed nations.
C) Our organization offers facilities and services that exceed both local and national requirements for delivering high-quality child care.
D)The key stakeholders in our organization are its current and potential donors, its board members, its staff, and the clients receiving its services.
E)Our organization helps homeless young people, ages 12 to 24, in our community develop the self-sufficiency and skills necessary to live independently. : Only this covers both aspects
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Re: The most fundamental decision a nonprofit organization can make is to [#permalink]
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1)The passage most strongly implies which of the following about clarifying the intended impact of a nonprofit organization's activities?

A) Decision makers must make difficult choices about whether requests from would-be recipients of the organization's services are legitimate.
B)The organization will most likely need to narrow its intended activities to a subset of those that its decision makers would like to include.
C)The organization should not try to define in detail the categories of beneficiaries that it intends to serve.
D)To make effective choices about how best to target which needs, the organization may have to exclude some board members or staff from deliberations.
E)The organization's leaders often find it unnecessary to decide among beneficiaries' apparently competing needs.

This question requires attention to detail. So let's delve into the details and find out which options fits the bill:
(A) The legitimacy of the requests are not in question here, i.e., legitimacy is not doubted anywhere in the passage. What the passage talks about in context of legitimacy is that lack of resources hinder the fulfillment of legitimate needs. Resources required to fulfill legitimate needs >>>> current resources at the disposal of these non profits. Thus, this choice is incorrect.
(B) This is the correct option. As discussed in the previous option, not all needs can be fulfilled. Thus, the ones that are more important (remember choosing is a hard decision) are selected from the pool and this is done by a variety of decision makers.
(C) The different categories of beneficiaries are not discussed in the passage. Out of scope.
(D) This is opposite of what is mentioned in the passage. Inclusion of staff and board members is advised. This option is clearly incorrect.
(E) "unnecessary" is the keyword here. The leaders find choosing between beneficiaries' needs hard/challenging, NOT unnecessary.

2)Which of the following most accurately states the main idea of the passage?

A)The process of developing an intended-impact statement for a nonprofit organization can be made less difficult by involving all types of stakeholders, including beneficiaries, board members, and staff.
B) Nonprofit organizations have difficulty meeting all the legitimate needs of their beneficiaries because those needs are greater than the resources available.
C) A crucial task that nonprofit organizations' leaders face is determining who the beneficiaries of the organization's services will be and how the benefits are to be delivered.
D) A nonprofit organization can significantly benefit by defining its mission in order to convince stakeholders, particularly donors, of the importance of the organization's work.
E) A good definition of a nonprofit organization's intended impact is difficult to develop but can play an integral role in effectively targeting the organization's uses of its resources.

The passage talks about what must a non profit do to maximise its impact with the limited resources it has. Only option (E) sums it coherently.

3) Which of the following is most clearly an example of a strong intended-impact statement, as described in the passage?

A) Our organization is an educational nonprofit corporation that seeks to raise awareness about environmentally friendly consumer products.
B)The beneficiaries of our organization are orphans and vulnerable children under the age of 18 in both developing and developed nations.
C) Our organization offers facilities and services that exceed both local and national requirements for delivering high-quality child care.
D)The key stakeholders in our organization are its current and potential donors, its board members, its staff, and the clients receiving its services.
E)Our organization helps homeless young people, ages 12 to 24, in our community develop the self-sufficiency and skills necessary to live independently.

According to the passage, "A strong intended-impact statement identifies both the beneficiaries of a nonprofit's activities and the benefits the organization will provide." This is clearly stated only in choice (E).
(A) talks only about the benefits that the organization will provide but not the target group.
(B) talks specifically about the beneficiaries but not the benefits.
(C) This is a close answer as it states the purpose of the firm. Though it doesn't explicitly specify the target group, we can imagine they would be children/their parents. But it still isn't that convincing. Let's keep it but look for a better answer.
(D) stakeholders are discussed only. Nothing has been said about the benefits this organization will provide.
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Re: The most fundamental decision a nonprofit organization can make is to [#permalink]
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The source of this passage is GMATPREP 5
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Re: The most fundamental decision a nonprofit organization can make is to [#permalink]
Got 2 out of 3

In the third question, I think B is also quite specific and E was elaborative too.
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Re: The most fundamental decision a nonprofit organization can make is to [#permalink]
Hi,
I want to understand that in question 3 why the answer is E. I think its an application based question but I am not able to relate.
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Re: The most fundamental decision a nonprofit organization can make is to [#permalink]
shivamlohiya007 wrote:
Hi,
I want to understand that in question 3 why the answer is E. I think its an application based question but I am not able to relate.

Hi shivamlohiya007,

Please refer to my reply for this passage: https://gmatclub.com/forum/the-most-fun ... l#p2513731

Let me know if you still have doubts.
Thanks.
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Re: The most fundamental decision a nonprofit organization can make is to [#permalink]
dabaobao wrote:
The most fundamental decision a nonprofit organization can make is to define the results it must deliver in order to be successful. That process entails translating the organization's mission into goals that are simultaneously compelling enough to attract ongoing support from stakeholders and specific enough to inform resource allocations. One approach is for nonprofit leaders to formulate and agree upon the organization's intended impact. A strong intended-impact statement identifies both the beneficiaries of a nonprofit's activities and the benefits the organization will provide—that is, the change in behavior, knowledge, or status quo its programs are designed to effect. Such specificity gives decision makers a powerful lens to use when they have to make trade-offs among worthy, competing priorities.

Discussions about an organization's intended impact tend to be iterative, inclusive (drawing in board as well as staff members), and incredibly hard. One source of difficulty: legitimate needs invariably outstrip any single organization's ability to meet them. So by clarifying its strategy and scope, the nonprofit is also determining what it will not do. This involves tough choices, without "right" answers. But only by making them can a nonprofit align its limited resources with the activities that will have the greatest impact.

Solution

1)The passage most strongly implies which of the following about clarifying the intended impact of a nonprofit organization's activities?
A) Decision makers must make difficult choices about whether requests from would-be recipients of the organization's services are legitimate. - Out of Scope
B)The organization will most likely need to narrow its intended activities to a subset of those that its decision makers would like to include. - Correct
C)The organization should not try to define in detail the categories of beneficiaries that it intends to serve. - Reverse Logic
D)To make effective choices about how best to target which needs, the organization may have to exclude some board members or staff from deliberations. - Out of Scope
E)The organization's leaders often find it unnecessary to decide among beneficiaries' apparently competing needs. - Reverse Logic

2)Which of the following most accurately states the main idea of the passage?
A)The process of developing an intended-impact statement for a nonprofit organization can be made less difficult by involving all types of stakeholders, including beneficiaries, board members, and staff. - Out of Scope
B)Nonprofit organizations have difficulty meeting all the legitimate needs of their beneficiaries because those needs are greater than the resources available. - Limited Scope
C) A crucial task that nonprofit organizations' leaders face is determining who the beneficiaries of the organization's services will be and how the benefits are to be delivered. - One word off ("who" and "how")
D)A nonprofit organization can significantly benefit by defining its mission in order to convince stakeholders, particularly donors, of the importance of the organization's work. - Out of Scope
E)A good definition of a nonprofit organization's intended impact is difficult to develop but can play an integral role in effectively targeting the organization's uses of its resources. - Correct

3)Which of the following is most clearly an example of a strong intended-impact statement, as described in the passage? - Required: Need to have both benefits and beneficiary
A) Our organization is an educational nonprofit corporation that seeks to raise awareness about environmentally friendly consumer products. - Has only one of them
B)The beneficiaries of our organization are orphans and vulnerable children under the age of 18 in both developing and developed nations. - Has only one of them
C) Our organization offers facilities and services that exceed both local and national requirements for delivering high-quality child care. - Has only one of them
D)The key stakeholders in our organization are its current and potential donors, its board members, its staff, and the clients receiving its services. - Has only one of them
E)Our organization helps homeless young people, ages 12 to 24, in our community develop the self-sufficiency and skills necessary to live independently. - Correct. - Has both of them

In Question 2, I eliminated E because it is stated in the passage: " A strong intended-impact statement identifies both the beneficiaries of a nonprofit's activities and the benefits the organization will provide" whereas option E says A good definition of a nonprofit organization's intended impact is difficult to develop.

I think E is contradictory to the passage. I think C should be the answer.
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The most fundamental decision a nonprofit organization can make is to [#permalink]
budhni wrote:
dabaobao wrote:
The most fundamental decision a nonprofit organization can make is to define the results it must deliver in order to be successful. That process entails translating the organization's mission into goals that are simultaneously compelling enough to attract ongoing support from stakeholders and specific enough to inform resource allocations. One approach is for nonprofit leaders to formulate and agree upon the organization's intended impact. A strong intended-impact statement identifies both the beneficiaries of a nonprofit's activities and the benefits the organization will provide—that is, the change in behavior, knowledge, or status quo its programs are designed to effect. Such specificity gives decision makers a powerful lens to use when they have to make trade-offs among worthy, competing priorities.

Discussions about an organization's intended impact tend to be iterative, inclusive (drawing in board as well as staff members), and incredibly hard. One source of difficulty: legitimate needs invariably outstrip any single organization's ability to meet them. So by clarifying its strategy and scope, the nonprofit is also determining what it will not do. This involves tough choices, without "right" answers. But only by making them can a nonprofit align its limited resources with the activities that will have the greatest impact.

Solution

1)The passage most strongly implies which of the following about clarifying the intended impact of a nonprofit organization's activities?
A) Decision makers must make difficult choices about whether requests from would-be recipients of the organization's services are legitimate. - Out of Scope
B)The organization will most likely need to narrow its intended activities to a subset of those that its decision makers would like to include. - Correct
C)The organization should not try to define in detail the categories of beneficiaries that it intends to serve. - Reverse Logic
D)To make effective choices about how best to target which needs, the organization may have to exclude some board members or staff from deliberations. - Out of Scope
E)The organization's leaders often find it unnecessary to decide among beneficiaries' apparently competing needs. - Reverse Logic

2)Which of the following most accurately states the main idea of the passage?
A)The process of developing an intended-impact statement for a nonprofit organization can be made less difficult by involving all types of stakeholders, including beneficiaries, board members, and staff. - Out of Scope
B)Nonprofit organizations have difficulty meeting all the legitimate needs of their beneficiaries because those needs are greater than the resources available. - Limited Scope
C) A crucial task that nonprofit organizations' leaders face is determining who the beneficiaries of the organization's services will be and how the benefits are to be delivered. - One word off ("who" and "how")
D)A nonprofit organization can significantly benefit by defining its mission in order to convince stakeholders, particularly donors, of the importance of the organization's work. - Out of Scope
E)A good definition of a nonprofit organization's intended impact is difficult to develop but can play an integral role in effectively targeting the organization's uses of its resources. - Correct

3)Which of the following is most clearly an example of a strong intended-impact statement, as described in the passage? - Required: Need to have both benefits and beneficiary
A) Our organization is an educational nonprofit corporation that seeks to raise awareness about environmentally friendly consumer products. - Has only one of them
B)The beneficiaries of our organization are orphans and vulnerable children under the age of 18 in both developing and developed nations. - Has only one of them
C) Our organization offers facilities and services that exceed both local and national requirements for delivering high-quality child care. - Has only one of them
D)The key stakeholders in our organization are its current and potential donors, its board members, its staff, and the clients receiving its services. - Has only one of them
E)Our organization helps homeless young people, ages 12 to 24, in our community develop the self-sufficiency and skills necessary to live independently. - Correct. - Has both of them

In Question 2, I eliminated E because it is stated in the passage: " A strong intended-impact statement identifies both the beneficiaries of a nonprofit's activities and the benefits the organization will provide" whereas option E says A good definition of a nonprofit organization's intended impact is difficult to develop.

I think E is contradictory to the passage. I think C should be the answer.

Hi budhni,

The author through these lines: " A strong intended-impact statement identifies both the beneficiaries of a nonprofit's activities and the benefits the organization will provide" is trying to explain what a strong- intended impact statement does, and how does it benefit the decision makers of a non-profit organization. He never mentions that this is actually how the decisions are made. This sentence is followed by the lines: "Discussions about an organization's intended impact tend to be iterative, inclusive (drawing in board as well as staff members), and incredibly hard......", implying option E.

Hope This Helps.
Thanks.
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Re: The most fundamental decision a nonprofit organization can make is to [#permalink]
AjiteshArun

For Q-2

Option D also makes sense, as it is mentioned in the opening lines of the passage:

"The most fundamental decision a nonprofit organization can make is to define the results it must deliver in order to be successful. That process entails translating the organization's mission into goals that are simultaneously compelling enough to attract ongoing support from stakeholders and specific enough to inform resource allocations ".

The rest of the first para discuss about this process.

Para-2: highlights that - Such decisions are difficult to make but only by doing so the non-profit may achieve its goal.

There is dilemma in choosing E over D.

Kindly help.
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Re: The most fundamental decision a nonprofit organization can make is to [#permalink]
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rocky620 wrote:
AjiteshArun

For Q-2

Option D also makes sense, as it is mentioned in the opening lines of the passage:

"The most fundamental decision a nonprofit organization can make is to define the results it must deliver in order to be successful. That process entails translating the organization's mission into goals that are simultaneously compelling enough to attract ongoing support from stakeholders and specific enough to inform resource allocations ".

The rest of the first para discuss about this process.

Para-2: highlights that - Such decisions are difficult to make but only by doing so the non-profit may achieve its goal.

There is dilemma in choosing E over D.

Kindly help.

Hi rocky620,

This is a primary purpose question, so I removed option D as soon as I saw "A nonprofit organization can significantly benefit by defining its mission in order to convince stakeholders... of the importance of the organization's work". As you pointed out, the passage starts with this statement:
NandishSS wrote:
The most fundamental decision a nonprofit organization can make is to define the results it must deliver in order to be successful.

Defining its results is something that a nonprofit does in order to be successful. It's not something that it does just to convince stakeholders of the importance of its work. Sure, translating the organization's mission into goals that stakeholders find compelling is one of the things it's looking for, but because this is a primary purpose question, we shouldn't mark something this limited.
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The most fundamental decision a nonprofit organization can make is to [#permalink]
Passage Structure:
Intended impacts of Non-Profit organization (NPO) through
- inline activities towards decision maker of organisation and
- generating benefits from allocated resource in order to be successful.

Words: 201 Read Time: 3 mins 30 sec

Para 1: NPO to be successful, attract shareholders, specify resource, identifies both the beneficiaries of a non-profit’s activities, and acquired benefits for organisation, which works for NPO when to trade-offs among while competing priorities.
Para 2: NPO intended impact tend to be iterative, inclusive, and incredibly hard.
Strategy and scope of NPO can reduce needs, helps to select tough choice.
Can tough choice make NPO align its resource with activities, activities having greatest impact on NPO.

1)The passage most strongly implies
which of the following about clarifying,
the intended impact of a non-profit organization's activities?

as mentioned in the passage
One approach is for non-profit leaders to formulate and agree upon the organization's intended impact.
Intended-impact statement identifies:
1. the beneficiaries of a non-profit's activities and
2. the benefits the organization will provide

A) Decision makers must make difficult choices about
whether “requests from would-be recipients” of the organization's services “are legitimate
Out of scope - Irrelevant

B) The organization will most likely
need to narrow its intended activities” to a subset of those that
its decision makers would like to include
Correct: as mentioned above

C) The organization should not try to
define in detail the categories of beneficiaries” that it “intends to serve
Out of scope - Irrelevant

D) To make “effective choices” about how best to target
which needs, the organization may have to “exclude some board members or staff from deliberations
Out of scope - Irrelevant

E) The organization's leaders often find it “unnecessary to decide among beneficiaries' apparently competing needs
Out of scope - Irrelevant

-----------------------------------------------------------------------------------------------------------------------------------------------------------

2)Which of the following most accurately states the main idea of the passage?

A) The process of developing an intended-impact statement
for a non-profit organization can be made
less difficult by involving all types of stakeholders, including beneficiaries, board members, and staff.
Wrong - Irrelevant

B) Non-profit organizations
have difficulty meeting all the legitimate needs of their beneficiaries
because those needs are greater than the resources available
Wrong (as per sentence mentioned in the passage): One source of difficulty: legitimate needs invariably outstrip any single organization's ability to meet them

C) A crucial task that
non-profit organizations' leaders face is determining
who the beneficiaries of the organization's services will be and
how the benefits are to be delivered.
Wrong - Irrelevant

D) A non-profit organization can significantly benefit
by defining its mission in order
to convince stakeholders, particularly donors, of the importance of the organization's work.
Wrong: Out of scope

E) A good definition of a non-profit organization's intended impact
is difficult to develop
but can play an integral role in effectively targeting the organization's uses of its resources.
Correct: as mention in the passage
Sentence 1: The most fundamental decision a non-profit organization can make is to define the results it must deliver in order to be successful definition of NPO
Sentence 2: by clarifying its strategy and scope, the non-profit is also determining what it will not do. This involves tough choices, without "right" answers difficult to develop
Sentence 3: But only by making them can a non-profit align its limited resources with the activities that will have the greatest impact effectively targeting the organization's uses of its resources

-----------------------------------------------------------------------------------------------------------------------------------------------------------

3) Which of the following is most clearly
an example of a strong intended-impact statement,
as described in the passage?

as mentioned in the passage:
That process entails translating the organization's mission into goals that are
simultaneously compelling enough
- to attract ongoing support from stakeholders and
- specific enough to inform resource allocations

A strong intended-impact statement identifies both
the beneficiaries of a non-profit's activities and
the benefits the organization will provide

A) Our organization is an educational non-profit corporation
that seeks
to “raise awareness” about environmentally friendly consumer products
Wrong: claims only beneficiaries of non-profit’s activities

B) The “beneficiaries” of our organization are
orphans and vulnerable children under the age of 18
in both developing and developed nations.
Wrong: Claims only benefits the organisation will provide

C) Our organization offers facilities and services
that exceed both local and national requirements
for delivering high-quality child care.
Wrong: Not a NPO activities “delivering high-quality child care”

D) The key stakeholders in our organization are
its current and potential donors, its board members, its staff, and the clients receiving its services.
Wrong: Not a NPO organisation

E) Our organization helps
homeless young people, ages 12 to 24, in our community
develop the self-sufficiency and skills necessary to live independently.
Correct: NPO activities, NPO organisation and proper goal to specify resources
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Re: The most fundamental decision a nonprofit organization can make is to [#permalink]
GMATNinja - Can you please explain Q2 option choice B? Is it because how the benefits will be delivered are not mentioned in the passage? If it said what are the benefits then will that ans choice be correct?
Can you explain option choice E (correct ans) as well?
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Re: The most fundamental decision a nonprofit organization can make is to [#permalink]
nikitathegreat wrote:
GMATNinja - Can you please explain Q2 option choice B? Is it because how the benefits will be delivered are not mentioned in the passage? If it said what are the benefits then will that ans choice be correct?
Can you explain option choice E (correct ans) as well?

The passage begins by stating that the most fundamental decision for a nonprofit organization is defining the results it must deliver for success. This decision involves translating the organization's mission into specific goals.

It then discusses the importance of formulating an intended-impact statement, which identifies both the beneficiaries and the benefits the organization will provide. This statement helps nonprofit leaders make informed decisions about resource allocation and trade-offs among competing priorities.

The passage also highlights the challenges involved in this process, particularly the fact that legitimate needs often exceed the organization's capacity to meet them. Consequently, nonprofits need to make tough choices about what they will and will not do.

The central theme throughout the passage is the significance of defining an organization's intended impact and how it helps align resources for the greatest impact. This aligns with option E, which emphasizes the difficulty of developing such a definition but underscores its importance in efficiently using resources.

While other points mentioned in the passage are valid, option E captures the primary emphasis of the passage on defining intended impact and its role in resource allocation.