CFRE exam questions fully solved & updated 2024

accountability The responsibility of the donee organization to keep a donor informed about the use that is made of the donor ' s gift as well as the cost of raising it. acknowledgment Written expression of gratitude for gift or service. acknowledgment letter A letter sent by a donee, or on behalf of a donee, to the donor, expressing appreciation for a gift and identifying the use that will be make of the gift. An acknowledgment letter may be a form letter, but it is usually personalized. acquisition mailing (or prospect mailing) A mailing to prospects to acquire new members or donors. advance gifts Gifts given or pledged in advance of a public announcement of a campaign. Advance gifts are solicited before a campaign is announced because the success or failure of a campaign may depend on the size of the advance gifts. advisory board A group of infl uential and prominent individuals whose association with a development program is calculated to lend luster and implied endorsement of the program ' s goals and objectives. analysis That section of a study that deals with the factors essential to success in a fundraising program; principally the case for support, leadership potential, and fi elds of support. annual giving Annually repeating gift programs; seeking funds on annual or recurring basis from the same constituency; income is generally used for operating budget support. annual report A yearly report of fi nancial and organizational conditions prepared by the management of an organization. anonymous gift A gift whose announcement, by specifi c wish of the donor, can include only the amount; the name of the donor is withheld. appreciated real property and securities gift Gifts of real estate or securities, which when held long term are deductible for federal income tax purposes at the full fair market value with no capital gain on the appreciation. However, the appreciation is a tax preference item, and proper counsel should be obtained to evaluate whether this would have alternative minimum tax consequences. associates A term used variously to describe a group of individuals who may be supporting an institution through contributions at a prescribed level, serving in a special advisory capacity, or serving as a sponsoring body for special institutional events. audit An internal evaluation of development procedures as practiced by a nonprofi t institution or agency; normally conducted by professional fundraising counsel. bargain sale The sale of property at less than its fair market value. Frequently, a person will sell property to a 501(c)(3) organization or institution at a " bargain " price (for example, the individual ' s cost as opposed to its market value). The transaction is partly a gift and partly a sale. benefactor One who makes a major gift to an institution or agency; also, an arbitrary classifi cation of contributors whose gifts are above a certain level, which is calculated to single them out as a group and to stimulate similar giving by others. benefit event A form of fundraising that involves the organization and staging of a special event for charitable purposes; all proceeds above expenses are designated as a contribution to the charitable institution concerned. benevolence A disposition to do good; an act of kindness; a generous gift. bequest A transfer, by will, of personal property such as cash, securities, or other tangible property. big gifts A general term used to signify gifts in upper ranges, the precise limits varying from institution to institution. Their importance is emphasized in all fundraising campaigns. board of directors Individuals selected (for example, by other directors or members) in accordance with law (usually refl ected in bylaws) to establish policy and oversee the management of an organization or institution. book value The amount of an asset stated in a company' s records, not necessarily the amount it could bring on the open market. bricks and mortar Common manner of alluding to the physical plant needs of an institution and to the campaigns designed to secure the necessary funds. A " bricks and mortar campaign " is a campaign to raise building funds. budget A detailed breakdown of estimated income and expenses for a development program, prepared in advance. Budgets show various cost categories, including personnel, printed materials, purchase and rental of equipment, offi ce expense, headquarters, mailing charges, costs of events, and so on. campaign An organized effort to raise funds for a nonprofi t organization. campaign costs Expenditures that are deemed essential to the planning and operation of a campaign and that are directly related to campaign budget projections. campaign leadership Top volunteers who are an essential ingredient of any campaign organization and one of the three major pedestals on which fundraising success must rest, the others being the case and sources of support. Campaign leaders provide and maintain the momentum and enthusiasm essential to the motivation of the entire organization of volunteers. campaign materials General term used to denote campaign forms of all kinds; materials required for campaign workers, fact sheets, prospect lists, and numerous other items essential to the effective functioning of a