CFRE FINAL EXAM 2026/2027 QUESTIONS AND SOLUTIONS
RATED A+
✔✔STEP ELEVEN - ✔✔Prepare Communications Plan
1. People give money to people and causes they care about
2. Communications must stir the emotions and intellects
✔✔Goal of Communications - ✔✔to lead the prospective donor to an understanding
and acceptance of the NPO and its purposes and create a desire to share in seeing that
the mission is fulfilled
✔✔Two Way Communications - ✔✔1. a means for donors to express concerns
2. exchange of values
✔✔Relationships - ✔✔1. FR is about relationships built on mutual interests and
concerns
2. People give to people with causes
✔✔STEP TWELVE - ✔✔Activate Volunteer Corps
1. using volunteer advocates is compelling
2. trend is to rely on staff to solicit gifts especially major ones
3. NPOs must renew and expand volunteer corps to expand base of donors
4. One volunteer is needed for every five personal solicitations
✔✔STEP THIRTEEN - ✔✔SOLICITATION
1. Represents carrying out the FR plan
2. Culmination of previous steps
3. Making the case
4. Expalining his level of commitment
5. Inviting prospective donor to join in the fulfillment of the mission
6. Is dignified process of asking with pride for a philanthropic gift to carry out impt work
of NPO
✔✔STEP FOURTEEN - ✔✔STEWARDSHIP
1. Soliciting and receiving the gift is the beginning of a deepening relationship between
donor and npo
2. Proper gratitude and acknowledgement by the NPO
3. NPO discloses how the gift will be used and demonstrate accountability and
stewardship in use of gift
✔✔GIFT Renewal Possibility - ✔✔1. When donors are properly thanked
2. Use of gift is reported
3. Demonstration of wise stewardship is evident
4. Restarts the FR cycle
,✔✔PROCESS - ✔✔FR is a multi disciplined process requiring extensive involvement of
staff and volunteers in a series of interrelated steps described in the FR cycle!!!
✔✔What are the main responsibilities of a fund raiser? - ✔✔1. Manage the process
2. Serve as a catalyst
3. Serve as a coach for all involved
✔✔How can a NPO engage its volunteers and raise philanthropic dollars? - ✔✔On
organizational strengths that reflect its understanding of the external environment.
✔✔Explain the 'connected' concept - ✔✔1. NPO must be connected to its external
environment
2. NPO must understand changing needs of the external environment and understand
its ability to respond to human and financial resources to remain functional
3. NPO must have management structures in place that interpret its mission in relation
to changing external needs
4. NPO tendency toward a closed or open system relative to the external environment
has an impact on fundraising
✔✔What is a Closed System? - ✔✔NPO that doesn't need others
1. NPO have a tendency to be closed
2. The attempt to build endowments reflect that tendency
3. A fully endowed NPO can become a closed system irrelevant to the common good
and vulnerable to decline
✔✔What is an Open System? - ✔✔NPO that is open to ideas of their external
enviroment
1. When NPOs desire a broad base of support or seek wider influence they must be
open systems
2. Open system theory assumes tht orgs are not independent of their external
environments and that they have impact on and are affected by their environments
✔✔What is Harmony? - ✔✔1. Many NPOs cannot and should not be fully responsive to
the market in order to enhance FRing
2. NPOs must remain in harmony with the values and mission for which they were
founded.
3. NPOs with strong internal value systems that give rise to their mission should
become highly responsive by actively involving their clients and potential contributors in
the NPOs affairs
4. FRing success depends on the sensitive inclusion of potential supporters in the life
and spirit of the org
✔✔Entrepreneurship - ✔✔1. NPOs today are vulnerable to concepts of social
entrepreneurship and market orientation
,2. Donors push NPOs towards operating more market based services, using a business
model, with a focus on the bottom line.
3. Some NPOs have to deal with external pressures to balance the bottom line interests
of donors / board members with top line mission
✔✔Profit v. Nonprofit - ✔✔1. NPOs do not exist to generate profits but long term
survival depends on good business practices
2. NPOs that develop surplus income protect themselves from fluctuation in client fees
and fundraising levels
✔✔Surplus revenue - ✔✔1. Ensures contributors that the org has a future
2. Orgs that strive to provide the most effective services with the fewest resources are
most likely to generate surpluses
3. NPOs that are effective and efficient will attract philanthropic dollars
4. Management affects FRing
✔✔Accountability - ✔✔1. Is a major force
2. encompasses how well a NPO is managed and how well it communicates its
management and outcomes to its constituents
3. Is a strength to hold itself accountable to demonstrate good stewardship to its
constituents
✔✔Readiness - ✔✔1. Business techniques are useful in managing a NPO
2. New service initiatives that abandon mission to enhance revenue production harm
philanthropy
3. NPO must remain faithful to its mission and defy marketing info sometimes
✔✔Support - ✔✔1. FRing based on strengths assumes dignity ... no need to apologize
in the solicitation process
2. FRing based on values and mission is a meaningful part of philanthropy
3. before going to the public, NPO must prepare internally
✔✔Institutional Plan - ✔✔1. An essential readiness element is the institutional plan
2. Attests to the stability and to the futurity of the NPO based on current and future
needs within the scope of the mission
3. greatest strength of Inst. Plan wrt RFing process is the confidence in the future
empowered by vision
✔✔Beyond Programs - ✔✔1. An effective plan goes beyond programs
2. Programs must be drafted in economic terms if they are to provide a suitable
foundation of FRing
3. The plan must project annual income and expenses for each program current and
future
4. The plan should also identify special purpose, capital and endowment needs that are
anticipated in that time
, ✔✔Income and Expense - ✔✔1. NPO is strongest when the prospective donor accepts
the validity of the income and expense projections relative to past accomplishments and
future program delivery
2. If financial accountability through the planning process can demonstrate efficient use
of resources for effective programs, then good stewardship has begun
✔✔Financial Plan - ✔✔Goes beyond income and expense projections to state:
1. Amount that must be raised for current program support through the annual fund
2. Amounts required for capital projects
3. Organization's endowment
4. Cash reserve requirements
✔✔Financial Analysis - ✔✔Has an assessment of anticipated revenue and gifts, forces
evaluation of program proposals and decisions when priorities are set.
✔✔The Plan - Financial - ✔✔1. Involves staff and board
2. Commitment to implementation and evaluation
3. Generates ownership
4. Gives substance to programs for human/societal needs
5. Must promote the case for support
✔✔Human Factor One - ✔✔1. First human resource strength in institutional readiness is
the BOARD
2. A thoughtfully structured, involved and dedicated board is a symbol of responsible
governance and an asset to FR
3. A passive, un-involved board is a problem
✔✔Trusteeship at its best! - ✔✔1. Essential for board to be involved from beginning of
fin plan format, to evaluation and part of acceptance with program and fin priorities
2. Acceptance to give and to ask
3. Must have integrity with the community - first point of accountability and stewards of
public trust
4. responsible for FRing success of programs
✔✔Human Factor Two - ✔✔The professional staff: Organization strength manages
programs and finances
✔✔CEO - ✔✔1. key to FR process. Link to board and lead to engaging donors and
prospects
2. sets the stage for org support of FRing
3. Lack of CEO is debilitating
✔✔Board and CEO - ✔✔1. Board and CEO must be involved with FRing
2. Board must support FR as first step in readiness
RATED A+
✔✔STEP ELEVEN - ✔✔Prepare Communications Plan
1. People give money to people and causes they care about
2. Communications must stir the emotions and intellects
✔✔Goal of Communications - ✔✔to lead the prospective donor to an understanding
and acceptance of the NPO and its purposes and create a desire to share in seeing that
the mission is fulfilled
✔✔Two Way Communications - ✔✔1. a means for donors to express concerns
2. exchange of values
✔✔Relationships - ✔✔1. FR is about relationships built on mutual interests and
concerns
2. People give to people with causes
✔✔STEP TWELVE - ✔✔Activate Volunteer Corps
1. using volunteer advocates is compelling
2. trend is to rely on staff to solicit gifts especially major ones
3. NPOs must renew and expand volunteer corps to expand base of donors
4. One volunteer is needed for every five personal solicitations
✔✔STEP THIRTEEN - ✔✔SOLICITATION
1. Represents carrying out the FR plan
2. Culmination of previous steps
3. Making the case
4. Expalining his level of commitment
5. Inviting prospective donor to join in the fulfillment of the mission
6. Is dignified process of asking with pride for a philanthropic gift to carry out impt work
of NPO
✔✔STEP FOURTEEN - ✔✔STEWARDSHIP
1. Soliciting and receiving the gift is the beginning of a deepening relationship between
donor and npo
2. Proper gratitude and acknowledgement by the NPO
3. NPO discloses how the gift will be used and demonstrate accountability and
stewardship in use of gift
✔✔GIFT Renewal Possibility - ✔✔1. When donors are properly thanked
2. Use of gift is reported
3. Demonstration of wise stewardship is evident
4. Restarts the FR cycle
,✔✔PROCESS - ✔✔FR is a multi disciplined process requiring extensive involvement of
staff and volunteers in a series of interrelated steps described in the FR cycle!!!
✔✔What are the main responsibilities of a fund raiser? - ✔✔1. Manage the process
2. Serve as a catalyst
3. Serve as a coach for all involved
✔✔How can a NPO engage its volunteers and raise philanthropic dollars? - ✔✔On
organizational strengths that reflect its understanding of the external environment.
✔✔Explain the 'connected' concept - ✔✔1. NPO must be connected to its external
environment
2. NPO must understand changing needs of the external environment and understand
its ability to respond to human and financial resources to remain functional
3. NPO must have management structures in place that interpret its mission in relation
to changing external needs
4. NPO tendency toward a closed or open system relative to the external environment
has an impact on fundraising
✔✔What is a Closed System? - ✔✔NPO that doesn't need others
1. NPO have a tendency to be closed
2. The attempt to build endowments reflect that tendency
3. A fully endowed NPO can become a closed system irrelevant to the common good
and vulnerable to decline
✔✔What is an Open System? - ✔✔NPO that is open to ideas of their external
enviroment
1. When NPOs desire a broad base of support or seek wider influence they must be
open systems
2. Open system theory assumes tht orgs are not independent of their external
environments and that they have impact on and are affected by their environments
✔✔What is Harmony? - ✔✔1. Many NPOs cannot and should not be fully responsive to
the market in order to enhance FRing
2. NPOs must remain in harmony with the values and mission for which they were
founded.
3. NPOs with strong internal value systems that give rise to their mission should
become highly responsive by actively involving their clients and potential contributors in
the NPOs affairs
4. FRing success depends on the sensitive inclusion of potential supporters in the life
and spirit of the org
✔✔Entrepreneurship - ✔✔1. NPOs today are vulnerable to concepts of social
entrepreneurship and market orientation
,2. Donors push NPOs towards operating more market based services, using a business
model, with a focus on the bottom line.
3. Some NPOs have to deal with external pressures to balance the bottom line interests
of donors / board members with top line mission
✔✔Profit v. Nonprofit - ✔✔1. NPOs do not exist to generate profits but long term
survival depends on good business practices
2. NPOs that develop surplus income protect themselves from fluctuation in client fees
and fundraising levels
✔✔Surplus revenue - ✔✔1. Ensures contributors that the org has a future
2. Orgs that strive to provide the most effective services with the fewest resources are
most likely to generate surpluses
3. NPOs that are effective and efficient will attract philanthropic dollars
4. Management affects FRing
✔✔Accountability - ✔✔1. Is a major force
2. encompasses how well a NPO is managed and how well it communicates its
management and outcomes to its constituents
3. Is a strength to hold itself accountable to demonstrate good stewardship to its
constituents
✔✔Readiness - ✔✔1. Business techniques are useful in managing a NPO
2. New service initiatives that abandon mission to enhance revenue production harm
philanthropy
3. NPO must remain faithful to its mission and defy marketing info sometimes
✔✔Support - ✔✔1. FRing based on strengths assumes dignity ... no need to apologize
in the solicitation process
2. FRing based on values and mission is a meaningful part of philanthropy
3. before going to the public, NPO must prepare internally
✔✔Institutional Plan - ✔✔1. An essential readiness element is the institutional plan
2. Attests to the stability and to the futurity of the NPO based on current and future
needs within the scope of the mission
3. greatest strength of Inst. Plan wrt RFing process is the confidence in the future
empowered by vision
✔✔Beyond Programs - ✔✔1. An effective plan goes beyond programs
2. Programs must be drafted in economic terms if they are to provide a suitable
foundation of FRing
3. The plan must project annual income and expenses for each program current and
future
4. The plan should also identify special purpose, capital and endowment needs that are
anticipated in that time
, ✔✔Income and Expense - ✔✔1. NPO is strongest when the prospective donor accepts
the validity of the income and expense projections relative to past accomplishments and
future program delivery
2. If financial accountability through the planning process can demonstrate efficient use
of resources for effective programs, then good stewardship has begun
✔✔Financial Plan - ✔✔Goes beyond income and expense projections to state:
1. Amount that must be raised for current program support through the annual fund
2. Amounts required for capital projects
3. Organization's endowment
4. Cash reserve requirements
✔✔Financial Analysis - ✔✔Has an assessment of anticipated revenue and gifts, forces
evaluation of program proposals and decisions when priorities are set.
✔✔The Plan - Financial - ✔✔1. Involves staff and board
2. Commitment to implementation and evaluation
3. Generates ownership
4. Gives substance to programs for human/societal needs
5. Must promote the case for support
✔✔Human Factor One - ✔✔1. First human resource strength in institutional readiness is
the BOARD
2. A thoughtfully structured, involved and dedicated board is a symbol of responsible
governance and an asset to FR
3. A passive, un-involved board is a problem
✔✔Trusteeship at its best! - ✔✔1. Essential for board to be involved from beginning of
fin plan format, to evaluation and part of acceptance with program and fin priorities
2. Acceptance to give and to ask
3. Must have integrity with the community - first point of accountability and stewards of
public trust
4. responsible for FRing success of programs
✔✔Human Factor Two - ✔✔The professional staff: Organization strength manages
programs and finances
✔✔CEO - ✔✔1. key to FR process. Link to board and lead to engaging donors and
prospects
2. sets the stage for org support of FRing
3. Lack of CEO is debilitating
✔✔Board and CEO - ✔✔1. Board and CEO must be involved with FRing
2. Board must support FR as first step in readiness
