Which of the following is a benefit of having good governance in a nonprofit?

Study for the UA Standard For Excellence Test. Utilize flashcards and multiple choice questions, each with hints and explanations. Prepare effectively for your exam!

Good governance in a nonprofit organization is crucial for building trust and confidence among stakeholders, which include donors, volunteers, and the community at large. When governance is strong, stakeholders can have assurance that the organization is being managed responsibly and is using its resources effectively and ethically. This confidence can lead to increased support in various forms, including financial donations, volunteer involvement, and overall community engagement.

While other options might also reflect some positive outcomes of good governance, such as media coverage or fundraising efficiency, the key advantage highlighted by option B is the foundation of trust and transparency that governs how stakeholders perceive the nonprofit’s operations and intentions. A strong governance framework ultimately ensures that the organization adheres to its mission and regulatory standards, further solidifying stakeholder trust.

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