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06 Sep 2021, 07:30
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D
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
95%
(hard)
Question Stats:
50% (02:52) correct
50%
(02:57)
wrong
based on 340
sessions
History
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Not Attempted Yet
The Redville Community Center, a nonprofit organization, was facing a budgetary crisis due to rising utility costs and expensive building repairs that were necessary to keep the center open. The board of directors decided to raise the membership fees and assess a building fee to raise the necessary funds. Toward the end of the year the board discovered that the costs were less than they thought and the fee changes actually gave the center a budget surplus. The board decided to use the surplus funds to buy a new van to shuttle people from the nearby nursing home to the center even though the old van was still serviceable. But before doing so, the board should obtain permission from the members who paid the additional fees.
Which one of the following policies, if put into effect, would most justify the position advocated above and yet place the least restriction on the use of funds by community centers?
(A) Beneficiaries of a nonprofit organization with a vested fee-based interest should be considered to be placing their trust in the directors of those organizations to use the money wisely according to whatever circumstance might arise.
(B) Beneficiaries of a nonprofit organization with a vested fee-based interest cannot delegate to the directors of those organizations the responsibility of allocating the funds received for various purposes consonant with the purposes of the organization as the directors of the organization see fit.
(C) Directors of nonprofit organizations cannot allocate assessments to any purposes for which the directors had not specifically earmarked the funds in advance.
(D) Fees assessed by a nonprofit organization for a specific purpose should only be used for that purpose, or if that is unable to happen then should only be used according to the express wishes of those who pay the assessments.
(E) Directors of nonprofit organizations who assess additional fees for specific purposes must return funds received from such assessments if more money is received than can practicably be used for the specified purpose of the assessment.
Which one of the following policies, if put into effect, would most justify the position advocated above and yet place the least restriction on the use of funds by community centers?
(A) Beneficiaries of a nonprofit organization with a vested fee-based interest should be considered to be placing their trust in the directors of those organizations to use the money wisely according to whatever circumstance might arise.
(B) Beneficiaries of a nonprofit organization with a vested fee-based interest cannot delegate to the directors of those organizations the responsibility of allocating the funds received for various purposes consonant with the purposes of the organization as the directors of the organization see fit.
(C) Directors of nonprofit organizations cannot allocate assessments to any purposes for which the directors had not specifically earmarked the funds in advance.
(D) Fees assessed by a nonprofit organization for a specific purpose should only be used for that purpose, or if that is unable to happen then should only be used according to the express wishes of those who pay the assessments.
(E) Directors of nonprofit organizations who assess additional fees for specific purposes must return funds received from such assessments if more money is received than can practicably be used for the specified purpose of the assessment.
11 Sep 2021, 03:30
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Bunuel
OFFICIAL EXPLANATION
Answer: D
STEP 1: Read the question and identify your task.
This is a Strengthen question. It asks you to find the policy that fits the situation.
STEP 2: Read the argument with your task in mind.
In this case, you need a policy that allows the community center to use the additional funds as it desires but also satisfies the interests of those who
donated the money.
STEP 3: Know what you’re looking for.
You will look for something similar in your answer options.
STEP 4: Read every word of every answer choice.
Answer A gives the center complete freedom to do what it wants with all the funds but ignores the interests of those who donated the money. Answer B states that the center can do nothing with the money except what the donors approve, which ties the hands of the center while giving too much power to the donors. Answer C hamstrings the center by saying the directors must approve the purpose for all spending in advance, but it does not address funding overages and thus is not helpful in the situation described in the argument. Answer D states that the center should use the money for the intended purpose unless those funds cannot be used for that purpose, in which case the donors should be consulted. This policy fits the situation perfectly. It allows the center to use the money as it sees fit until the allocations are fulfilled. Then, they must consult the donors. Answer E requires that the center return the money, which is in complete contradiction to the situation. Therefore, the correct choice is answer D.
24 Jul 2024, 09:17
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Understanding the argument -
The Redville Community Center, a nonprofit organization, was facing a budgetary crisis due to rising utility costs and expensive building repairs that were necessary to keep the center open. - Background Info.
The board of directors decided to raise the membership fees and assess a building fee to raise the necessary funds. - Plan and goal.
Toward the end of the year the board discovered that the costs were less than they thought and the fee changes actually gave the center a budget surplus. - Background Info.
The board decided to use the surplus funds to buy a new van to shuttle people from the nearby nursing home to the center even though the old van was still serviceable. - Who asked the board to decide for Van? No one. They decided on something even though they had the old one still running. Do they have the flexibility to decide? It seems so, yes.
But before doing so, the board should obtain permission from the members who paid the additional fees. - Position.
Which one of the following policies, if put into effect, would most justify the position advocated above and yet place the least restriction on the use of funds by community centers?
It's asking to justify the position as they already have the most minor restriction regarding where to invest the additional funds. They are seeking approval for a new van and not asking the members where they should invest the extra money. They already decided that without any interference from the members. There is an angle of rejection from the members, but it's not the members who choose firsthand where to invest; they accept or reject whatever the committee proposes.
(A) Beneficiaries of a nonprofit organization with a vested fee-based interest should be considered to be placing their trust in the directors of those organizations to use the money wisely according to whatever circumstance might arise. - It Doesn't justify the plan at all.
(B) Beneficiaries of a nonprofit organization with a vested fee-based interest cannot delegate to the directors of those organizations the responsibility of allocating the funds received for various purposes consonant with the purposes of the organization as the directors of the organization see fit. - opposite. Too restrictive.
(C) Directors of nonprofit organizations cannot allocate assessments to any purposes for which the directors had not specifically earmarked the funds in advance. - Too restrictive. It says that the committee can't buy anything.
(D) Fees assessed by a nonprofit organization for a specific purpose should only be used for that purpose, or if that is unable to happen then should only be used according to the express wishes of those who pay the assessments. - Yes. If they approve Van, it implies that they express their wish to buy a new van.
(E) Directors of nonprofit organizations who assess additional fees for specific purposes must return funds received from such assessments if more money is received than can practicably be used for the specified purpose of the assessment. - Too restrictive.
The Redville Community Center, a nonprofit organization, was facing a budgetary crisis due to rising utility costs and expensive building repairs that were necessary to keep the center open. - Background Info.
The board of directors decided to raise the membership fees and assess a building fee to raise the necessary funds. - Plan and goal.
Toward the end of the year the board discovered that the costs were less than they thought and the fee changes actually gave the center a budget surplus. - Background Info.
The board decided to use the surplus funds to buy a new van to shuttle people from the nearby nursing home to the center even though the old van was still serviceable. - Who asked the board to decide for Van? No one. They decided on something even though they had the old one still running. Do they have the flexibility to decide? It seems so, yes.
But before doing so, the board should obtain permission from the members who paid the additional fees. - Position.
Which one of the following policies, if put into effect, would most justify the position advocated above and yet place the least restriction on the use of funds by community centers?
It's asking to justify the position as they already have the most minor restriction regarding where to invest the additional funds. They are seeking approval for a new van and not asking the members where they should invest the extra money. They already decided that without any interference from the members. There is an angle of rejection from the members, but it's not the members who choose firsthand where to invest; they accept or reject whatever the committee proposes.
(A) Beneficiaries of a nonprofit organization with a vested fee-based interest should be considered to be placing their trust in the directors of those organizations to use the money wisely according to whatever circumstance might arise. - It Doesn't justify the plan at all.
(B) Beneficiaries of a nonprofit organization with a vested fee-based interest cannot delegate to the directors of those organizations the responsibility of allocating the funds received for various purposes consonant with the purposes of the organization as the directors of the organization see fit. - opposite. Too restrictive.
(C) Directors of nonprofit organizations cannot allocate assessments to any purposes for which the directors had not specifically earmarked the funds in advance. - Too restrictive. It says that the committee can't buy anything.
(D) Fees assessed by a nonprofit organization for a specific purpose should only be used for that purpose, or if that is unable to happen then should only be used according to the express wishes of those who pay the assessments. - Yes. If they approve Van, it implies that they express their wish to buy a new van.
(E) Directors of nonprofit organizations who assess additional fees for specific purposes must return funds received from such assessments if more money is received than can practicably be used for the specified purpose of the assessment. - Too restrictive.
