CERTIFIED FUND RAISING EXECUTIVE (CFRE) EXAM STUDY
GUIDE | QUESTIONS & ANSWERS | NEW 2026/2027 UPDATE |
GRADED A+| 100% CORRECT (VERIFIED SOLUTIONS)
CFRE Test Content Outline -
ANSWER
1. Domain 1: Current and Prospective Donor Research (14%-28 items)
2. Domain 2: Securing the Gift (23%-46 items)
3. Domain 3: Relationship Building (26%-52 items)
4. Domain 4: Volunteer Involvement (8%-16 items)
5. Domain 5: Leadership and Management (19%-38 items)
6. Domain 6: Ethics, Accountability, and Professionalism (10%-20 items)
Philanthropy -
ANSWER
voluntary action for the common good... - Robert L. Payton, as quoted in Greenfield's Fundraising
Fundamentals
Number of nonprofits registered with IRS -
ANSWER
US: 1.4 mil; 63% registered as 501c3... 161K in Canada
Donors give for the following reasons -
ANSWER
moral obligation to help... personal satisfaction of helping others... to remove guilt for not giving... to
maintain/improve social status... peer pressure... compassion/empathy... personal identification...
self-interest... religious influence... need to be needed... substitution for active participation...
support for mission and purpose... personal relationship... appreciation for mission... evidence of
,one's success... to express anger, or love, or hope... to end fear... out of the cause's appeal... to be
remembered... to gain recognition... to join group, sense of belonging ... to preserve the species... to
gain immorality... for psychic self-satisfaction... desire to provide public goods... to fulfill condition for
employment... in response to leadership from peers... to be agent for public good... satisfaction from
seeing others satisfied... tax benefits
Linkage, Ability & Interest (LIA) -
ANSWER
Qualities used to qualify prospective donors for further research and cultivation often found when
developing a list of prospective donors by identifying individuals, groups and entities, such as
foundations, corporations, and government agencies.
Source of Financial Support: (4) -
ANSWER
1. Individual (73%)
2. Foundation (15%)
3. Corporations (5%)
4. Bequests (8%)
Source of Financial Support: (4)
1. Individual (73%) -
ANSWER
-Primary Source of charitable contributions
-Retirees most generous group of individuals
-Volunteers give more than twice the % of annual income to charity as those who give but do not
volunteer.
Source of Financial Support: (4)
2. Foundation (15%)--- DEFINITION -
ANSWER
a). Nonprofit, nongovernmental org w/ a principal fund of endowments of its own
b). An org which maintains or aids charitable, educational, religious, or other activities serving the
public good primarily by making grants to other nonprofits.
, c). Required to distribute at least 5% of assets to nonprofits annually.
d). Org created and organized as a corp or charitable trust under state laws and which receives
federal, tax exempt status from the IRS.
TYPES OF FOUNDATIONS: (4) -
ANSWER
1. Independent
2. Corporate
3. Community
4. Operating
TYPES OF FOUNDATIONS: (4)
1. Independent -
ANSWER
A fund of endowment, designated by the IRS as a private foundation, the primary function of which
is to make grants. It's assets are typically derived from gifts of an individual or family. AKA "special or
general purpose funds".
TYPES OF FOUNDATIONS: (4)
2. Corporate -
ANSWER
Private foundations set up to make grants which it funds from a profit making business but most
often functions in concert with corporate policies and interests. Governance and management of the
corporations may include company employees as well as non employees. Corporations may also have
giving programs that are not channeled through the foundation.
TYPES OF FOUNDATIONS: (4)
3. Community -
ANSWER
-Usually classified as a public charity.
-Community foundations function like independent foundations.
GUIDE | QUESTIONS & ANSWERS | NEW 2026/2027 UPDATE |
GRADED A+| 100% CORRECT (VERIFIED SOLUTIONS)
CFRE Test Content Outline -
ANSWER
1. Domain 1: Current and Prospective Donor Research (14%-28 items)
2. Domain 2: Securing the Gift (23%-46 items)
3. Domain 3: Relationship Building (26%-52 items)
4. Domain 4: Volunteer Involvement (8%-16 items)
5. Domain 5: Leadership and Management (19%-38 items)
6. Domain 6: Ethics, Accountability, and Professionalism (10%-20 items)
Philanthropy -
ANSWER
voluntary action for the common good... - Robert L. Payton, as quoted in Greenfield's Fundraising
Fundamentals
Number of nonprofits registered with IRS -
ANSWER
US: 1.4 mil; 63% registered as 501c3... 161K in Canada
Donors give for the following reasons -
ANSWER
moral obligation to help... personal satisfaction of helping others... to remove guilt for not giving... to
maintain/improve social status... peer pressure... compassion/empathy... personal identification...
self-interest... religious influence... need to be needed... substitution for active participation...
support for mission and purpose... personal relationship... appreciation for mission... evidence of
,one's success... to express anger, or love, or hope... to end fear... out of the cause's appeal... to be
remembered... to gain recognition... to join group, sense of belonging ... to preserve the species... to
gain immorality... for psychic self-satisfaction... desire to provide public goods... to fulfill condition for
employment... in response to leadership from peers... to be agent for public good... satisfaction from
seeing others satisfied... tax benefits
Linkage, Ability & Interest (LIA) -
ANSWER
Qualities used to qualify prospective donors for further research and cultivation often found when
developing a list of prospective donors by identifying individuals, groups and entities, such as
foundations, corporations, and government agencies.
Source of Financial Support: (4) -
ANSWER
1. Individual (73%)
2. Foundation (15%)
3. Corporations (5%)
4. Bequests (8%)
Source of Financial Support: (4)
1. Individual (73%) -
ANSWER
-Primary Source of charitable contributions
-Retirees most generous group of individuals
-Volunteers give more than twice the % of annual income to charity as those who give but do not
volunteer.
Source of Financial Support: (4)
2. Foundation (15%)--- DEFINITION -
ANSWER
a). Nonprofit, nongovernmental org w/ a principal fund of endowments of its own
b). An org which maintains or aids charitable, educational, religious, or other activities serving the
public good primarily by making grants to other nonprofits.
, c). Required to distribute at least 5% of assets to nonprofits annually.
d). Org created and organized as a corp or charitable trust under state laws and which receives
federal, tax exempt status from the IRS.
TYPES OF FOUNDATIONS: (4) -
ANSWER
1. Independent
2. Corporate
3. Community
4. Operating
TYPES OF FOUNDATIONS: (4)
1. Independent -
ANSWER
A fund of endowment, designated by the IRS as a private foundation, the primary function of which
is to make grants. It's assets are typically derived from gifts of an individual or family. AKA "special or
general purpose funds".
TYPES OF FOUNDATIONS: (4)
2. Corporate -
ANSWER
Private foundations set up to make grants which it funds from a profit making business but most
often functions in concert with corporate policies and interests. Governance and management of the
corporations may include company employees as well as non employees. Corporations may also have
giving programs that are not channeled through the foundation.
TYPES OF FOUNDATIONS: (4)
3. Community -
ANSWER
-Usually classified as a public charity.
-Community foundations function like independent foundations.
