Fundraising Strategies and Best Practices, Exams of Nursing

Download Fundraising Strategies and Best Practices and more Exams Nursing in PDF only on Docsity! CFRE Practice Exam Questions with Answers 2024 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: 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. In recruiting to fill a board vacancy, the most important factor for the nominating committee to consider is the person's: ✔ commitment to the organization and mission. Successful, value-based philanthropy and fundraising rely mostly on a: ✔ compelling mission statement. Of the following, the most effective method of gift fundraising of a prospect would be: ✔ a visit by a peer, accompanied by the organization's fundraising professional. Which of the following would be the most cost effective fundraising technique in an annual campaign? ✔ Personal visit from a volunteer A fundraising structure that has a focus on an organization's needs, targets all constituencies, uses an intensive time frame, extensive promotion, and ultimately seeks monetary success is said to be oriented toward: ✔ campaign The best reason an organization might contract with a professional fundraising consultant is because the nature of the fundraising project is ✔ beyond the organization's experience. The most important reason for a charity to conduct its affairs with ethical integrity is to: ✔ maintain the public trust. The guideline on foundation fundraising by staff is that they: ✔ may solicit in carefully selected situations. Changes to the restriction on board designated funds: ✔ can be supported, because board-designated funds represent only an internal designation. When recognizing a major donor, it is most important for the fundraising professional to consider the: ✔ donor's preference for recognition. In conducting prospect research, not-for-profit organizations should establish policy guidelines that: ✔ identify a prospect research strategy and code of professional practice. In relation to major gifts, what is meant by the term letter of intent/pledge? ✔ A non-binding agreement outlining a donor's intent for a gift or bequest and payment terms. 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 A fundraiser is implementing a donor relations program for an organization. Stewardship of a donor should begin with the donor's ✔ first gift. The benefit and value of philanthropy through voluntary agencies and NPO are that ✔ choices and alternatives can be offered that might not be available under a system that relies solely on government funding. A fundraiser is charged with implementing a donation processing system for an organization. The recommended maximum time required to acknowledge a gift from a donor is: ✔ 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 ✔ gave last year but not this year. The ethical basis for setting campaign consulting fees is a ✔ flat fee for services rendered. Large corporations will be most influenced to make generous annual gift by the: ✔ corporation receiving a benefit in return for its gifts. In marketing, long-range goals are best attained by: ✔ achieving the greatest possible consumer satisfaction. The average length of time it takes a new charity to establish predictable levels of annual giving is ✔ 3 to 4 years. A grant-making body has awarded funding for particular project at an organization. The project is eventually completed without the need for a grant. The best course of action would be for the organization to ✔ contact the grantor and request to use the funds for a similar project. The key research information needed for prospect review meetings and discussions include: ✔ gift range and inclination to give. The most common reason for straying from an organizations mission is ✔ deterioration of leadership In preparation of the case statement, which of the following important pieces of information should be included first? ✔ Mission statement of the organization. The process of collecting and analyzing information on those who may have the ability to support a charitable program is called: ✔ prospect research. 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. When conducting a visit on a prospective donor, it is important to: ✔ listen for a connection between the prospective donors passions and the organizations needs. Which of the following ways of portraying an organization would be most effective for obtaining a grant? ✔ On the verge of greatness A communications plan being developed to support an initiative at a nonprofit organization should be evaluated first with regard to the organization's ✔ mission and vision. A fundraiser is preparing to announce a campaign goal at a kick-off meeting in 2 months but has not yet been successful in recruiting the person of his/her choice as campaign chair. The fundraiser should: ✔ be patient and persistent. The concept of "development" as perceived in the fundraising community is the promotion of understanding, participation, and support, and is generally accepted to include all of the following principles except ✔ demographics. A tennis-loving donor offers to contribute $1 million to build a new tennis facility at a NPO. Although this facility is not in the current master plan, it would be in keeping with the organization's focus on mental and physical health. Who decides whether to accept this gift? ✔ The board of the organization When preparing a fund development plan, it is most effective to: ✔ build the plan in relation to the organization's strategic plan. The final step in the expansion of a fundraising operation is the creation of a: ✔ planned giving program. The key attribute that enables a fundraiser to inspire a donor to make a gift is: ✔ commitment to and passion for the cause. The first step in creating an effective marketing plan for a NPO is to: ✔ conduct a marketing audit to evaluate and record the current state of the organization's marketing efforts. Volunteers should not make a fundraising visit until: ✔ they make a contribution. The majority of prospective donors for major gifts will be most interested in: ✔ what their gift will accomplish. 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.