Download CFRE Practice Exam: Fundraising and Nonprofit Management and more Exams Nursing in PDF only on Docsity!
CFRE Practice Exam with verified solutions
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: - correct answer ✔ 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? - correct answer ✔ 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: - correct answer ✔ 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: - correct answer ✔ the cost for maintenance and warranties. The primary challenge in maintaining an effective relationship between a donor and a fundraiser is: - correct answer ✔ 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: - correct answer ✔ learn about the prospective donor's interests and link to the organization.
The most essential factor in sending gift acknowledgement letters is: - correct answer ✔ speed of delivery. The first prospects to be asked to support any campaign are the: - correct answer ✔ board members In marketing, what does SWOT analysis stands for? - correct answer ✔ strength, weakness, opportunities, threats In order to be effective, it is essential that the vision and mission be continually expressed by the organization's: - correct answer ✔ leadership When interviewing prospective fundraising employees, it is most important to avoid: - correct answer ✔ questions that may be construed as personal. When developing a specific solicitation plan for an individual donor, the most important considerations are: - correct answer ✔ 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: - correct answer ✔ enlist the prospect's peers to make the visit. A governing board's principal relationship is with the organization's: - correct answer ✔ chief executive officer.
In hiring a firm for contracted services, it is best to start with: - correct answer ✔ referrals. The most important open line of communication is between the fundraising director and the organization's - correct answer ✔ chief executive officer. Before beginning to write the case for support for an upcoming campaign, it is most important to: - correct answer ✔ 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? - correct answer ✔ Leadership by the board. A nonprofit organization considering a new planned giving/legacy program must first: - correct answer ✔ understand it may take years for a return on investment. The fundraiser has been asked to report on monthly activities. In designing the written report, what are the best activities to measure? - correct answer ✔ Phone calls, visits, solicitations An integrated approach to fundraising is best described as: - correct answer ✔ matching cases with constituencies and setting goals for each segment and each case or campaign. Which statement is the most true about solo solicitors? - correct answer ✔ May be appropriate depending on the relationship between the prospective donor and solicitor
Accuracy in constituents' records within an organization's donor database is best measured by the number of: - correct answer ✔ valid addresses When an evaluation component is being incorporated into a funding proposal, all of the following steps are necessary except: - correct answer ✔ stating objectives as broadly as possible. Effective use of volunteers is essential to fundraising success. Which is the most important rule in using volunteers? - correct answer ✔ Avoid wasting volunteer's time. What is the best indicator of an individual's capacity for support? - correct answer ✔ level of personal wealth An organization is faced with embarrassment due to public knowledge that an audit has raised questions about the expenditures of government grants. Concerned about donor reaction, the organization should: - correct answer ✔ be open and forthright in publicly stating its position. The first part of a fundraising appeal letter that a prospective donor will usually read is the: - correct answer ✔ postscript. The first step in writing a fundraising marketing plan is to: - correct answer ✔ analyse internal resources, the external environment, and macro factors.
would be the last position that would need to be added? - correct answer ✔ planned giving officer Volunteers who are also donors give at: - correct answer ✔ 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: - correct answer ✔ a statement of purpose or mission. To move towards a successful "ask", it is most important for a constituency development plan to include: - correct answer ✔ strategic communication measures and approaches to reach constituents. The immediate goal of corporate participation in cause-related marketing is to: - correct answer ✔ enhance the corporate image. In which situation is a case statement used? - correct answer ✔ Ongoing fundraising programs To identify prospective consultants, the next step after getting budget approval is: - correct answer ✔ 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: - correct answer ✔ 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: - correct answer ✔ proxy statement. The primary objective of a cultivation call on a prospective major gift donor is to: - correct answer ✔ 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: - correct answer ✔ people who have given before. Defining board and staff leadership roles is best achieved by: - correct answer ✔ determining and conveying expectations. When an organization volunteers are ineffective, it is most often because they: - correct answer ✔ have not been appropriately trained by the organization. Securing corporate gifts is most improved by knowing the corporations - correct answer ✔ charitable giving decision makers Thank you receipts for gifts are most influential when sent to donors within - correct answer ✔ 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: -
Which of the following would be the most cost effective fundraising technique in an annual campaign? - correct answer ✔ 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: - correct answer ✔ campaign The best reason an organization might contract with a professional fundraising consultant is because the nature of the fundraising project is - correct answer ✔ beyond the organization's experience. The most important reason for a charity to conduct its affairs with ethical integrity is to: - correct answer ✔ maintain the public trust. The guideline on foundation fundraising by staff is that they: - correct answer ✔ may solicit in carefully selected situations. Changes to the restriction on board designated funds: - correct answer ✔ 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: - correct answer ✔ donor's preference for recognition.
In conducting prospect research, not-for-profit organizations should establish policy guidelines that: - correct answer ✔ 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? - correct answer ✔ 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: - correct answer ✔ 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: - correct answer ✔ annual report The primary benefit of a gift acknowledgement letter is: - correct answer ✔ donor cultivation Annual giving programs tend to grow as a result of: - correct answer ✔ increasing prospect cultivation. The first step in developing a strategy for communicating with donors is to: - correct answer ✔ segment the organization's audience. Persons asked to help rate the prospects should be those who - correct answer ✔ know the majority of prospects well.
Donors are most likely to make additional gifts if they: - correct answer ✔ are informed how the gift was used and whether it made a difference. The primary reason for establishing giving levels is to: - correct answer ✔ 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? - correct answer ✔ Graduates, board members, and prior donors. Which of the following is the most accurate statement regarding corporate donors? - correct answer ✔ Corporate donor communication should be concise and thoughtfully prepared. The main purpose of the process of ongoing cultivation in a capital campaign is to: - correct answer ✔ 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? - correct answer ✔ 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 - correct answer ✔ last year's gift income. When an intersection of interest, readiness and capacity occurs, the - correct answer ✔ 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: - correct answer ✔ 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"? - correct answer ✔ values To develop a strong culture of philanthropy across an organization, the board's first priority should be to: - correct answer ✔ 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: - correct answer ✔ gives them confidence in the organization's capacity and their ability to help raise funds. The foundation of a marketing plan for fundraising is: - correct answer ✔ constituency analysis The most critical aspect of a successful fundraising program is how the fundraiser - correct answer ✔ stewards donors To research charitable foundations as possible funding sources, which of the following should be most strongly considered as indicators of a charitable foundation's willingness to look favorably upon a grant proposal? - correct answer ✔ The objectives of the charitable foundation and the types of programs typically funded.
A fundraiser is implementing a donor relations program for an organization. Stewardship of a donor should begin with the donor's - correct answer ✔ first gift. The benefit and value of philanthropy through voluntary agencies and NPO are that - correct answer ✔ 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: - correct answer ✔ 48 hours The most important element of a major gift cultivation plan is - correct answer ✔ communicating with the donor regularly. Which basic financial statement best presents the results of operations for a specific period of time? - correct answer ✔ Statement of income and expenditure. Thank you letters are most effective when they: - correct answer ✔ are personalized and tailored to the appeal. In direct mail, the factor that most affects the percentage of responses from current donors is the: - correct answer ✔ 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: - correct
answer ✔ 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: - correct answer ✔ matching prospective donor interests and capacities with gift opportunities. The creation of a recognition society should be considered for the purpose of: - correct answer ✔ bonding the organization and its donors. The most important approach to utilize the strength of volunteers in fundraising is to - correct answer ✔ assign tasks that match volunteers interests and skills. The best practice for acknowledging a gift from a first time donor is to - correct answer ✔ thank the donor within 48 hours. Volunteers in not-for-profit organizations may expect their performance evaluation from - correct answer ✔ peers What is the best first step in the major gift cultivation process? - correct answer ✔ Identify prospective donors A primary function of most special events is to - correct answer ✔ heighten the organizations profile.
When disclosing amounts raised and names of donors, prior to publication, it is necessary to ensure that - correct answer ✔ 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? - correct answer ✔ 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: - correct answer ✔ salary and performance based bonuses. A fund development director's annual salary is best established by: - correct answer ✔ 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 - correct answer ✔ formal oral presentation, usually of short duration. Which one of the following is a correct description of the primary focus of marketing? - correct answer ✔ Appealing to prospect's interests In an annual fund program, a LYBUNT is a person who - correct answer ✔ gave last year but not this year. The ethical basis for setting campaign consulting fees is a - correct answer ✔ flat fee for services rendered.
Large corporations will be most influenced to make generous annual gift by the:
- correct answer ✔ corporation receiving a benefit in return for its gifts. In marketing, long-range goals are best attained by: - correct answer ✔ achieving the greatest possible consumer satisfaction. The average length of time it takes a new charity to establish predictable levels of annual giving is - correct answer ✔ 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 - correct answer ✔ 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: - correct answer ✔ gift range and inclination to give. The most common reason for straying from an organizations mission is - correct answer ✔ deterioration of leadership In preparation of the case statement, which of the following important pieces of information should be included first? - correct answer ✔ Mission statement of the organization.
