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