ADRC Training: Making a Profit in a Non-Profit World

Welcome to the post test for the "Making a Profit in a Non-Profit World" course.

Participants of this training course will be required to complete a short exam to assess their understanding of the presented materials and complete an evaluation form. You receive 1 point for each of the 10 items answered correctly on the test. A score of eight (8) or more correct answers indicates that you have a good understanding of the course material. If you score less than eight (8) you should review the information pertaining to the items you missed. Before starting, please provide the following identifying information:

Post Test

Answer the following questions to test your knowledge of Making a Profit in a Non-Profit World:

1. According to the IRS non-profits can make a profit by using surplus funds for activities that clearly fit into the mission of the organization and is directly related to what the organization does.

 True

 False

2. Private pay consumers include those who are ineligible for public programs as well as people who can afford to pay for all or some services.

 True

 False

3. Which statement describes why non-profit/human service agencies frequently avoid serving private pay consumers?

1.  Perception that non-profit organizations should not make money.

2.  Staff do not like to ask consumers for money.

3.  Other organizations may have unfavorable perceptions of the agency if it charges for services.

4.  Consumers are not willing to pay for services, so its best not to ask.

5.  All of the above

4. Select the best items that describe how an organization can expand its services to new populations.

1.  Think of clients as "people in need" rather than "having no money."

2.  Offer services that are unique and different from other providers in the service area.

3.  Do not "think outside the box" because that will not help.

4.  Consider family, friends and caregivers as new populations to serve.

5.  1,2, and 4 above

6.  All of the above

5. Check the item (s) below that can help organizations overcome obstacles in implementing a "Fee for Service" model

1.  Highlight benefits to clients

2.  Emphasize benefits to the organization: "We can do more"

3.  Train staff about the benefits of "Fee for service" model

4.  Focus on the intangible value of services not on economics

5.  All of the above

6. Its important to establish criteria, or "draw the line," for categories of consumers who can pay for services, those who can partially pay for services and those who are unable to pay for services.

 True

 False

7. All consumers should be informed about payment options.

 True

 False

8. Which of the following statements is true?

1.  Services provided under grants or other funds in non-profit organizations are typically not funded to cover the full cost of the service, thus making consumer contributions and payment critical to sustaining services.

2.  Low cost or "free" services have less value than those that consumers pay for.

9. Which item in the list below does not describe "best practice" for non-profits.

1.  Understand the cost of doing business

2.  Use actual cost of providing services to determine fees

3.  Use surplus funds generated by serving full-pay consumers to serve more low income clients

4.  Use surplus funds to strengthen the organization by increasing its financial stability

5.  Market services as being "free"

10. Having a Business Plan is critical for non-profits. It addresses all the tough issues and answers questions before they are asked. Which of the following are characteristics of a good business plan?

1.  Sets a course for getting "from here to there"

2.  Answers questions for funders and other stakeholders

3.  Provides data to support the organization's success

4.  Has key components of Executive Summary, Service Description, Market Analysis, Implementation Plan, Management Summary and Financial Plan

5.  Educates staff, community, stakeholders and funders

6.  All of the above