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CFRE Test Review (2026/2027) – Sample Questions
with Step-by-Step Answers
The most effective marketing vehicles for planned giving are considered to be: a. Personal visits with the donor, direct mail, blogging, and email. b. Direct mail, newsletters, wills clinics, estate planning seminars, and by educating other professionals. c. Initial visit with donor, followed by letter reiterating planned giving options followed by email or telephone communication. d. All of the above. - correct answer- b. Direct mail, newsletters, wills clinics, estate planning seminars, and by educating other professionals. Financial statements are useful because: a. In the for-profit arena, they help investors and creditors make better economic decisions while in nonprofit organizations, the cash flow analysis is an indicator of the financial health of the organization b. In the nonprofit arena, they help board members make better economic and strategic decisions, while in the for-profit arena, the cash flow analysis is a better indicator of the financial health of the organization
c. They illustrate economic health as GAAP ensures that financial statements are accurate and timely d. They ensure that outside auditors are monitoring financial health of the organization - correct answer- a. In the for-profit arena, they help investors and creditors make better economic decisions while in nonprofit organizations, the cash flow analysis is an indicator of the financial health of the organization Sylvia Gotrocks has been identified as a new prospect for your organization. Your researcher has determined that she has an annual disposable income of $200, and a family farm currently on the market for $2 million. You should approach Sylvia for: a. An annual gift b. A major gift in support of your capital campaign, part of which support a Center on Renewable Energy and the use of corn hybrids c. A gift of real estate d. An outright bequest to your organization in Sylvia's will - correct answer- a. An annual gift What is the best indicator that your solicitation strategies are meeting the ethical standards established by AFP:
d. Ask the CEO of your organization to make the decision e. Ask the couple to work with someone else in your new organization. - correct answer- e. Ask the couple to work with someone else in your new organization. The mission of FASB is to: a.Monitor the financial and accounting industry for the benefit of the public including: issuers, auditors and users of financial information- including charities b. Provide resources, information and leadership relative to financial accounting and reporting- particularly as it relates to the preparation of financial statements c. Establish and improve standards of financial accounting and reporting for the guidance and education of the public including: issuers, auditors and users of financial information-including charities d. B&C - correct answer- c. Establish and improve standards of financial accounting and reporting for the guidance and education of the public including: issuers, auditors and users of financial information-including charities Which aspect of an organization's history is MOST effectively used in appealing to donors? a. The external factors that impacted the organization b. The identity of the organization's chief executive officers
c. The historical aspects associated with an evolution of various departments or new services d. The role of major donors in developing the current strengths of the organization - correct answer- d. The role of major donors in developing the current strengths of the organization A major donor has shared with you that she has a history of domestic violence. You are leaving your current position to take one as the development officer for a shelter. What can you do with this information? a. Record it in her file so the next development officer can have a more intimate portrait of the donor b. Make note of the information and take it with you so you can solicit this donor for your new organization c. Confide your dilemma with a fellow development officer and seek his/her advice d. Do nothing - correct answer- d. Do nothing The IRS requires most tax-exempt organizations to submit an annual information report, the Form 990 and its relations, which includes a significant amount of financial reporting. The report requires:
a. Gives detailed information on the ways to give b.Describes all the programs that need money c. Includes thorough background information on the organization d. Attempts to satisfy donor needs rather than organizational needs - correct answer- d. Attempts to satisfy donor needs rather than organizational needs Development professionals lead the fundraising process by: knowing the organizations for which they work meet the desires of the community(ies) being served, have a goal and plan for achieving that goal, and have: a. The ability to articulate the organization's mission and activities to targeted audiences b. Individuals whose needs are satisfied by the organization c. An awareness of and access to community resources d. Understanding budgeting processes - correct answer- a. The ability to articulate the organization's mission and activities to targeted audiences Sammy Sorich signs a letter of gift intent for $10 million to your university, which would provide a naming opportunity for the new science center on campus. At that time, Sammy shares with the university president and campaign chair that he would like to name the center in honor of his brother Shady. Two months later,
Shady's arrest for money laundering is covered widely by local and national media outlets. You should react by: a. Proceeding with the naming as agreed to by the President, Campaign Chair and Sammy b. Asking your university president to meet with Sammy to reconsider who he honors with the gift c. Consulting with university leadership on how the name might affect the integrity of your organization d. Asking Sammy to apply his gift to programmatic needs that can be named at a later date - correct answer- b. Asking your university president to meet with Sammy to reconsider who he honors with the gift The process of establishing the financial range of gifts that a donor will reasonably consider is referred to as: a. Rating b. Determination c. Research d. Cultivating - correct answer- a. Rating In order to involve and retain current and prospective donors one must do several things. Which of the items listed below is NOT one of those things?
c. Solicitation strategies d. Creation of a positioning statement - correct answer- a. Opportunities for participation Amongst other marketing strategies, the marketing resource pyramid includes: a. Strategic plans and market research b. Visits, telephoning, and publications c. Target markets, articulated messages, and established time frames d. Audience research, communication tools, and distribution systems - correct answer- b. Visits, telephoning, and publications What is the best definition of generosity? a. Giving more than is required; customary or expected in light of one's resources and circumstances b. Having the virtues of compassion, kindness and love c. Behaving in ways that exceed what is required, customary or expected in light of one's environment and circumstances d. Both C and B - correct answer- c. Behaving in ways that exceed what is required, customary or expected in light of one's environment and circumstances A development operational plan outcome:
a. Details the case for support b. Includes a comprehensive organizational marketing plan and estimates required resources c. Sets goals and identifies strategies for achieving those goals d. Concentrates on elements of constituents that are closest to the organization - correct answer- c. Sets goals and identifies strategies for achieving those goals A possible source of support whose philanthropic interests appear to be a match with your organization, but whose ability to give, interests and linkages have not been qualified through research is the BEST definition for: a. Volunteer b. Qualified prospect c. Prospect d. Staff - correct answer- c. Prospect All of the items listed below are key marketing points EXCEPT: a. Know your audience b. Communicate good will c. Set goals d. Bring about a transaction - correct answer- c. Set goals
d. Number and size of gifts made to the organization - correct answer- a. Job description, performance expectations, donor records and budget Of the following, which is NOT a type of fundraising approach that supports a charitable organization's need for philanthropic gifts over the course of its lifetime? a. Gifts through planned giving b. Gifts of annual support c. Gifts of volunteer time d. Gifts through capital giving - correct answer- c. Gifts of volunteer time A donor requests to see your computer database records related to his/her giving. You should react by: a. Hanging up the phone immediately and searching for a new job b. Providing all the information to the donor that you consider "non-confidential" c. Asking the donor for more detail on exactly what they want to see and why d. Providing all the requested records and checking your policy related to sharing data - correct answer- d. Providing all the requested records and checking your policy related to sharing data
Donor records are stored for three purposes, which of the 4 listed below is NOT a reason: a. Planning-how to contact the person, etc. b. Historical reason-level of support c. For viewing by the public d. Accounting-IRS, organization, and donor - correct answer- c. For viewing by the public "Where are we going?" is a decision of the process for creation of the: a. Marketing plan b. Development plan c. Strategic plan d. Operational work plan - correct answer- c. Strategic plan The Donor Bill of Rights: a. Spells out the donor's right to be informed about the organization's mission, as well as expect the board to exercise prudent judgment in its stewardship responsibilities and have access of the organization's most recent financial statement b. Spells out the donor's right to be informed about the organization's mission, informed of those serving on the governing board, expectation of the board to exercise prudent judgment in its stewardship responsibilities and their right to have access of the organization's most recent financial statement
An organization cannot raise funds without: a. Its leadership having a clear sense of mission, what constituency/community it serves and how that mission relates to that constituency/community b. Its leadership, having a clear sense - a vision—of the organization's direction, familiarity with the organization's activities, an understanding of how those activities relate to the mission and how those activities serve the community c. Planning how it will achieve the mission and knowing how much it will cost d. All of the above - correct answer- d. All of the above Which of the following does not fall under development planning? a. Identification of prospective donors b. Case statements c. Stewardship d. Values statements - correct answer- d. Values statements Which are the four key activities used in fundraising? a. Research, relationships, marketing and solicitation b. Research, ethics and accountability, relationships and marketing
c. Research, marketing, relationships and stewardship d. Research, relationships, solicitation, ethics and moral responsibility - correct answer- b. Research, ethics and accountability, relationships and marketing Which of the following is NOT a principal component of the Written Institutional Strategic Plan? a. A thank you letter b. Brief history of the institution c. Statement of mission d. Statement of values - correct answer- a. A thank you letter Marketing involves the selection of target markets rather than a random attempt to win every market and be all things to everyone. It supports an organization in many ways such as: a. Provides a research function for strategic and development planning, helps engender buy-in to the various development activities and strategic plan, and links the organization to various constituents (publics, audiences, markets) b. Brings about voluntary exchanges of values. To be successful, the response sought has an investment that must be based on the value of the transaction to the customer and a mutually satisfying exchange c. Relies on presenting the organization's products in terms of the target market's needs and desires - it is user-oriented rather than seller-oriented
a. Source of gifts, job description, plan of action and timetable b. Department budget, donor records and systems, job description c. Annual performance expectations, prospect records and system, acknowledgement d. Computer processing, department budget, donor focused research - correct answer- b. Department budget, donor records and systems, job description You have built an excellent reputation as development officer for a fine arts organization in a small city. You've been able to enlist the support of many new donors and have cultivated numerous major gifts. You've been offered a higher paying job at the city hospital. Suppose you have been cultivating a wealthy philanthropist, Meg Moneybucks, who has no real interest in arts. Ms. Moneybucks has numerous health concerns and is likely to respond favorably to a request for support of the hospital primarily because she has high personal regard for you. Would it be in violation of the AFP Code of Ethical Principles to ask Ms. Moneybucks to make a gift to the hospital instead? a. Yes b. No c. It depends d. Don't know - correct answer- a. Yes Which of the following statements is most true?
a. The executive director must find ways to balance the needs of the community with the interests and needs of donors, and the needs of the organization b. Development professionals should negotiate ways to balance the needs of the community with the interests and needs of donors, and the needs of the organization c. Development professionals must find ways to balance the needs of the community with the interests and needs of donors, and the needs of the organization d. Development professionals must find ways to balance the needs of the community with the interests, and needs of prospects and the needs of the organization - correct answer- c. Development professionals must find ways to balance the needs of the community with the interests and needs of donors, and the needs of the organization Prospect research is the process of: a. Identifying, interviewing, and involving persons and organizations with the potential to become donors to your organization b. Identifying, incorporating, and integrating prospect information in a comprehensive and organized method c. Identifying, interviewing and integrating information to get donors to give to your organization
