Certified Nonprofit Professional Practice Exam

Which of the following is NOT a function of an environmental scan?

1. Identifying external threats

2. Assessing organizational strengths

3. Sets the budget for the marketing plan

4. Recognizing opportunities in the nonprofit sector

The correct answer is: Sets the budget for the marketing plan

An environmental scan primarily focuses on gathering and analyzing information about external factors that can impact an organization, particularly those within the nonprofit sector. This process includes identifying external threats, recognizing opportunities, and assessing how those factors relate to the organization’s overall effectiveness and sustainability. Setting the budget for a marketing plan, however, is a financial function that typically occurs after an organization has conducted its environmental scan. While an environmental scan provides critical context and data that can inform budget decisions, it does not directly involve the allocation of financial resources. Budget considerations are largely based on organizational priorities, anticipated income, and strategic goals, which emerge after understanding the external landscape. In essence, while an environmental scan can guide what areas require funding, the actual process of budgeting is distinct and operates on different principles.