CFRE Fund Development questions & answers graded A+ 2023/2024

CFRE Fund Development Pyramid of Giving - correct answer Annual Giving Major Giving Estate or Planned Giving Five Is of a donor relationship - correct answer identification information interest involvement investment What motivates donors? - correct answer charitable and want to help others ego public recognition join with others in a common purpose confidence in an organization/respect leaders & management they were asked Role of annual giving - correct answer identify & recruit new donors renew & upgrade previous donors expand involvement & participation of current donors opportunities for donor volunteerism & leadership identifies future capital & planned giving prospects IRS benefits of a cash gift - correct answer Total charitable contributions of up to 50% of donor's AGI for year of gift and a five-year income carryover of any excess IRS benefit of a securities gift - correct answer most gifts are under $5,000 in value Capital gains are deductible at full market value, up to 30% of donor's AGI with 5-year carryover when donated (before sale) IRS benefit of personal property gift - correct answer for a donor-created item - only cost of materials; donor-purchased item - full value if use of item is related to organization's exempt purpose -- but only cost if unrelated to exempt purpose; any item over $5,000 needs an appraisal and IRS form 8283; if organization sells the item, need form 8282 IRS benefit of gifts-in-kind - correct answer can be valuable when they are used directly for organization's charitable purposes or in direct support of an activity, benefit or event IRS benefit of donated services - correct answer no charitable deduction for volunteer time, but yes for unreimbursed expenses like gas & mileage; specialized skills that would have been paid for are deductible, ex. legal fees.