A Good Measure of Whether a Not-For-Profit Organization Is Efficient

question 19

Multiple Choice

A good measure of whether a not-for-profit organization is efficient in its fund-raising efforts is:

• A) Fund-raising expenses as a percentage of public support.
• B) The ratio of program expenses to number of clients served.
• C) Total revenues divided by total expenses.
• D) Percentage of program expenses to total expenses.

---

Definitions:

Duty of Loyalty

An obligation of individuals in fiduciary positions to act in the best interests of their company or clients.

Ethically Allowed

Actions or decisions that are permitted based on moral or ethical principles.

Unocal Rule

A legal standard from a Delaware Supreme Court case that gives boards of directors a framework for resisting takeover bids.

Business Judgment Rule

A legal principle that shields corporate directors and officers from liability for decisions made in good faith but that ultimately resulted in loss or damage.