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CFRE Practice Exam
If a donor states that the amount of money an organization is asking for is very large, the best response is to tell the prospective donor that: - the amount is large, but emphasize the value and long term impact of the gift. When is the most appropriate time to begin devoting time and energy into the development and nurturing of a relationship with a donor? - Immediately upon receipt of the donor's first gift, irrespective of the gift size The primary purpose of rating an organization's prospective donors is to determine their: - potential to give to the organization. When budgeting the costs for a new fundraising software package, in addition to the initial purchase and upgrades, a fundraiser also should factor in: - the cost for maintenance and warranties. The primary challenge in maintaining an effective relationship between a donor and a fundraiser is: - maintaining professional balance in the relationship. Based on based giving records, a fundraiser is visiting a prospective major gift donor for the first time. Because the prospective donor has never been visited by the organization, the most appropriate strategy is to: - learn about the prospective donor's interests and link to the organization. The most essential factor in sending gift acknowledgement letters is: - speed of delivery. The first prospects to be asked to support any campaign are the: - board members In marketing, what does SWOT analysis stands for? - strength, weakness, opportunities, threats In order to be effective, it is essential that the vision and mission be continually expressed by the organization's: - leadership When interviewing prospective fundraising employees, it is most important to avoid: - questions that may be construed as personal. When developing a specific solicitation plan for an individual donor, the most important considerations are: - the connection between a prospective donor's passion and an organization's need.
When soliciting leadership gifts for an organization, it is most important to: - enlist the prospect's peers to make the visit. A governing board's principal relationship is with the organization's: - chief executive officer. Which of the following responses best describes three hidden costs encountered in a capital project? - Fundraising, attrition, and inflation In the context of rating prospective donors, LAI stands for: - linkage, ability, interest. In evaluating fundraising programs, the relationship between fundraising costs and results is linked to each method used, the maturity of each program, and - previous performance. An organization has decided to hire a local fundraising consultant to work in its office one day per week to oversee and direct a campaign. The CEO has asked you to ensure the organization's interests are protected. A contract should be written establishing that the consultant will be paid: - in accordance with a code of professional ethics. Establishing the financial range of gifts that a donor will reasonably consider is referred to as a donor: - rating The single most important element in a direct mail campaign is: - the list of prospective new donors. Which method is most effective in establishing a two-way relationship with a donor? - Allowing the donor to select the time, frequency and method. In hiring a firm for contracted services, it is best to start with: - referrals. The most important open line of communication is between the fundraising director and the organization's - chief executive officer. Before beginning to write the case for support for an upcoming campaign, it is most important to: - acquire an understanding of the various donor target markets. Which of the following is the most critical factor affecting the success of a capital campaign? - Leadership by the board.
In a capital campaign program, the "special gift" opportunities offered to both large and small donors are commonly known as: - commemorative gifts You have analyzed the basic data (participants, income, and expense) from a direct-mail solicitation. In order to determine the key performances measurements and effectively evaluate your direct mail program, you will need to examine the: - percent participation, average gift size, net income, average cost per gift, cost of fundraising, and return. Special events are a major instrument in the promotion of causes and organizations. They also provide all of the following except a/an: - high probability of exceeding the goal. The most effective way to solicit major gifts is through: - person-to-person contact by a fundraiser of the appropriate level. The most important attribute of a promising prospective donor is: - interest and involvement in the donor-seeking organization. As part of its strategic plan, an organization has decided to expand its fundraising office from one person to five. Of the following positions, which would be the last position that would need to be added? - planned giving officer Volunteers who are also donors give at: - significantly higher rates than donors who do not volunteer. When organizing a new fundraising program, the fundraising professional should first determine if the organization has: - a statement of purpose or mission. To move towards a successful "ask", it is most important for a constituency development plan to include: - strategic communication measures and approaches to reach constituents. The immediate goal of corporate participation in cause-related marketing is to: - enhance the corporate image. In which situation is a case statement used? - Ongoing fundraising programs To identify prospective consultants, the next step after getting budget approval is: - talking with various organizations and professional associations that have used consultants
A fundraiser is planning to ask a large company to sponsor a special event. The first thing the fundraiser should do is: - see if the company has given to the organization in the past. The prospective donor is the head of a large publicly held corporation. One indication of the prospective donor's ability to make a gift might be found in that corporation's: - proxy statement. The primary objective of a cultivation call on a prospective major gift donor is to: - learn about the prospective donor's interest in the organization and its programs. The fundraiser's top ten prospective donors to a new campaign are most likely to be: - people who have given before. Defining board and staff leadership roles is best achieved by: - determining and conveying expectations. When an organization volunteers are ineffective, it is most often because they: - have not been appropriately trained by the organization. Securing corporate gifts is most improved by knowing the corporations - charitable giving decision makers Thank you receipts for gifts are most influential when sent to donors within - two days. For many organizations, it may be difficult to conduct an annual campaign and a capital campaign simultaneously. A best-practice approach would be to: - provide donors with a clear expectation of the importance of supporting both campaigns. To retain donors and increase their giving, it is most important to ensure that they: - understand how their gift will be used and the effect they will have on the organization. A request from a donor to change the receipt date for the donor's contribution is unethical: - in all circumstances. A contract between an organization and a consultant should include: - the scope of work describing services to be provided and performed and work to be accomplished. A fundraiser at an animal shelter is responsible for renting a mailing list for an acquisition mailing. The best list characteristics for success will consist of: - previous donors to another animal shelter.
As stewards of the relationship between nonprofits and donors, fundraising staff are responsible for: - earning and maintaining donor trust. A regularly published summary of the financial and program status of an organization or institution is typically referred to as the: - annual report The primary benefit of a gift acknowledgement letter is: - donor cultivation Annual giving programs tend to grow as a result of: - increasing prospect cultivation. The first step in developing a strategy for communicating with donors is to: - segment the organization's audience. Persons asked to help rate the prospects should be those who - know the majority of prospects well. The basic management functions for which the director of fundraising has primary responsibility are: - planning, organizing, executing, and evaluating the plan. In seeking support for the charitable organization, a volunteer should first: - have a strong commitment to the organization. Good volunteers often fail to be good board members because the organization fails to: - use their skills and talents properly. A case statement is described as: - persuasive tool often used in fundraising The first function of fundraising staff in a capital campaign is: - preparing a campaign timetable. When soliciting a contribution from an individual, it is most effective to: - Meet in person In defining program objectives when writing a grant proposal, it is necessary to make a/an - precise statement of anticipated results. The primary goal of an organization's fundraising plan should be to: - build philanthropic understanding and fundraising ownership among constituents. Donors are most likely to make additional gifts if they: -
are informed how the gift was used and whether it made a difference. The primary reason for establishing giving levels is to: - encourage larger gifts. In the planning stages of establishing a fundraising program for a NFP education institution, which of the following would be the most promising prospective donors? - Graduates, board members, and prior donors. Which of the following is the most accurate statement regarding corporate donors? - Corporate donor communication should be concise and thoughtfully prepared. The main purpose of the process of ongoing cultivation in a capital campaign is to: - present the case for support. A former patient contributes a large gift to a hospital. While the gift will be acknowledged on a plaque in the hospital foyer, the donor has clearly stated a desire for no further public recognition. What is the most likely motivation for this gift? - personal experience. To determine the progress being made in improving an organizations gift support, it is best to compare this year's gift income with - last year's gift income. When an intersection of interest, readiness and capacity occurs, the - prospect is ready to be asked for a gift. Given that volunteers are only as effective as staff can enable them to be, the most important role a professional fundraiser can play is: - as a steward and partner. What concept is best defined by a "enduring belief that specific modes of conduct are personally or socially preferable to others"? - values To develop a strong culture of philanthropy across an organization, the board's first priority should be to: - review the mission and the role of philanthropy in achieving it One major benefit to involving leaders and volunteers in the process of prospect research is that it: - gives them confidence in the organization's capacity and their ability to help raise funds. The foundation of a marketing plan for fundraising is: - constituency analysis
48 hours The most important element of a major gift cultivation plan is - communicating with the donor regularly. Which basic financial statement best presents the results of operations for a specific period of time? - Statement of income and expenditure. Thank you letters are most effective when they: - are personalized and tailored to the appeal. In direct mail, the factor that most affects the percentage of responses from current donors is the:
- years-of-giving history. A fundraiser is visiting an established donor to ask for a major gift. In deciding an appropriate amount to ask, the best course of action would be: - ask for a donation at what has been determined to be the donor's maximum capacity level. A new director of fundraising for a not-for-profit organization is seeking major gifts from individuals. The success of the fundraising plan will depend most strongly on: - matching prospective donor interests and capacities with gift opportunities. The creation of a recognition society should be considered for the purpose of: - bonding the organization and its donors. The most important approach to utilize the strength of volunteers in fundraising is to - assign tasks that match volunteers interests and skills. The best practice for acknowledging a gift from a first time donor is to - thank the donor within 48 hours. Volunteers in not-for-profit organizations may expect their performance evaluation from - peers What is the best first step in the major gift cultivation process? - Identify prospective donors A primary function of most special events is to - heighten the organizations profile. A donor tells a fundraising professional very personal information that would be helpful in fundraising efforts. The most appropriate action would be to: - record and use the information only with the donor's permission.
A fundraiser is charged with identifying prospects for a planned giving or legacy program and starts with the annual fund donor list. The most critical indicator of a donor's willingness to support the organization in a more significant way is the - number of years the donor has made a gift. Approaches for major gifts must at least - show how a project or gift will fit into the organizations future. Which of the following has the best chance for success in a direct mail program? - Targeted mailing to a group of people who have a relationship to the organization. Arranging for prospective donors to meet with an organizations leaders, sending handwritten notes, and issuing invitations to site tours are good examples of - cultivation. When adding staff for an expanded program it is best to hire: - a person whose skill and experience augment those of present staff. A donor offers the fundraising professional a personal gift of cash in appreciation of the officer's good work. The fundraising professional's most appropriate response is to: - decline the gift but offer to accept it on behalf of the organization. When disclosing amounts raised and names of donors, prior to publication, it is necessary to ensure that - all donors authorize the disclosure of their names. Which of the following would be most successful in strengthening the bond between an organization and its top donors? - Outline a plan for the year that includes regular contact with each of them. According to the International Statement of Ethical Principles in Fund Raising, compensation for professional fundraiser may include: - salary and performance based bonuses. A fund development director's annual salary is best established by: - the comparable salary ranges and the individual's experience. An initial cultivation visit with a corporate donations officer will offer the best opportunity to present a - formal oral presentation, usually of short duration. Which one of the following is a correct description of the primary focus of marketing? - Appealing to prospect's interests In an annual fund program, a LYBUNT is a person who -
invite a select group to review meeting to discuss the people they know. Prospective donors for an organization are best identified by: - links with the organization, giving ability, and interest. A fundraiser for a girl's school is considering a list of donors. Mrs. A retired 10 years ago after teaching at the school for 35 years. She has no children and lives with her husband who used to run a small business. Although they have a modest income, the couple has given several gifts to the school. Mrs. A should be considered as a prospect for what giving opportunities? - planned giving program Appropriate methods for developing goals and objectives include all of the following except: - testing new programs. In a direct mail program, it is a general principle that former donors should continue to be asked:
- until it can be demonstrated that the cost of each response is higher than the cost of acquiring a new donor. What is the primary motivation that drives a major donor? - Involvement When evaluating a mailing to existing donors, the most important calculation is: - return on investment The most effective method for creating a climate favorable to support by local businesses is to: - Emphasize the full impact the organization has on the community and its citizens If it is correct that 90% of the gifts to a capital campaign come from 10$ of the donors, the chief fundraising professional would best manage resources by: - Implementing cultivation and fundraising strategies targeted to the top donors and prospects. The logical basis of a case statement is the organizations - plans for the future. What is the most significant factor that a NPO would want to use in evaluating the director of development? - An increase in net-contributed income Direct mail, telephone solicitation, and personal fundraising are all used: - in annual giving campaigns. To maximize the outcome of working with volunteer leadership, it is most important for staff to:
- provide for effective use of volunteer time and skills.
Donors are primarily motivated to make philanthropic gifts - when they perceive that an organizations mission, values, and goals align well with their own philanthropic interests. To gain support for an organization, it is best to stress the: - benefits that the organization provides to its individuals. For convenience, the fundraising professional has kept separate personal files on major donors. Upon accepting a new career opportunity and leaving the present employer, the fund development officer should: - leave the files for the successor. When possible, funding proposals submitted to foundations should be signed by which official of the applicant organization? - The board chair or chief executive officer While conducting a feasibility study for a capital campaign, an organization discovers that the community is generally unaware of its activities. The organization should: - delay the campaign and develop a communications and cultivation strategy. Before beginning the concept, design and writing of a case statement, an organization must consider: - anticipated use of the case statement. The most favorable prospects for an organization for annual gift support are - individuals The primary reason people do not give money to charity is that they - are not asked to give to a charity. When a request for funding has been denied, the fundraiser should: - thank the organization for its careful consideration and ask for information on the reasons for the proposal rejection. The single greatest mistake made in fundraising campaigns is: - not asking for the gift. Which of the following is usually not a function of the board of directors? - Hiring fundraising staff members With respect to fundraising cost ratios, which is the most expensive? - Acquiring a new donor for the organization Fundraising goals for a NFPO should primary be based on - an analysis of previous years of fundraising.
An organization's community image is shaped strongly b the perceived quality of its - leadership The most effective way to keep donors meaningfully engaged in the work of an organization is to
- communicate about community needs that are being addressed by the organization. Market segmentation is best defined as: - submarkets or segments of the public Before undertaking a capital campaign, it is most essential to - determine the organization's capacity to succeed. The primary goal of a good planned giving marketing program is to - identify prospective donors.
