CFRE Practice Exam Quiz and correct answers.
1. If a donor states that the amount of money an organization is asking for is
very large, the best response is to tell the prospective donor that -Answer-
the amount is large, but emphasize the value and long term impact of the gift.
2. When is the most appropriate time to begin devoting time and energy into
the development and nurturing of a relationship with a donor?-Answer- -
Answer- Immediately upon receipt of the donor's first gift, irrespective of the gift
size
3. The primary purpose of rating an organization's prospective donors is to
determine their -Answer- potential to give to the organization.
4. When budgeting the costs for a new fundraising software package, in
addition to the initial purchase and upgrades, a fundraiser also should factor
in -Answer- the cost for maintenance and warranties.
5. The primary challenge in maintaining an effective relationship between a
donor and a fundraiser is -Answer- maintaining professional balance in the
relationship.
6. Based on based giving records, a fundraiser is visiting a prospective major
gift donor for the first time. Because the prospective donor has never been
visited by the organization, the most appropriate strategy is to -Answer-
learn about the prospective donor's interests and link to the organization.
7. The most essential factor in sending gift acknowledgement letters is -
Answer- speed of delivery.
8. The first prospects to be asked to support any campaign are the -
Answer- board members
9. In marketing, what does SWOT analysis stands for? -Answer- strength,
weakness, opportunities, threats
10. In order to be effective, it is essential that the vision and mission be
continually expressed by the organization's -Answer- leadership
11. When interviewing prospective fundraising employees, it is most impor-
tant to avoid -Answer- questions that may be construed as personal.
12. When developing a specific solicitation plan for an individual donor,
the most important considerations are -Answer- the connection between a
prospective donor's passion and an organization's need.
13. When soliciting leadership gifts for an organization, it is most important
to -Answer- enlist the prospect's peers to make the visit.
14. A governing board's principal relationship is with the organization's -
,Answer- chief executive officer.
15. Which of the following responses best describes three hidden costs en-
countered in a capital project? -Answer- Fundraising, attrition, and inflation
16. In the context of rating prospective donors, LAI stands for -Answer-
linkage, ability, interest.
, 17. In evaluating fundraising programs, the relationship between fundraising
costs and results is linked to each method used, the maturity of each program,
and -Answer- previous performance.
18. An organization has decided to hire a local fundraising consultant to work
in its office one day per week to oversee and direct a campaign. The CEO
has asked you to ensure the organization's interests are protected. A contract
should be written establishing that the consultant will be paid -Answer- in
accordance with a code of professional ethics.
19. Establishing the financial range of gifts that a donor will reasonably con-
sider is referred to as a donor -Answer- rating
20. The single most important element in a direct mail campaign is -Answer-
the list of prospective new donors.
21. Which method is most effective in establishing a two-way relationship with
a donor? -Answer- Allowing the donor to select the time, frequency and method.
22. In hiring a firm for contracted services, it is best to start with -Answer-
referrals.
23. The most important open line of communication is between the fundrais-
ing director and the organization's -Answer- chief executive officer.
24. Before beginning to write the case for support for an upcoming campaign,
it is most important to -Answer- acquire an understanding of the various donor
target markets.
25. Which of the following is the most critical factor affecting the success of
a capital campaign? -Answer- Leadership by the board.
26. A nonprofit organization considering a new planned giving/legacy pro-
gram must first -Answer- understand it may take years for a return on
investment.
27. The fundraiser has been asked to report on monthly activities. In designing
the written report, what are the best activities to measure? -Answer- Phone
calls, visits, solicitations
28. An integrated approach to fundraising is best described as -Answer-
matching cases with constituencies and setting goals for each segment and
each case or campaign.
29. Which statement is the most true about solo solicitors? -Answer- May be
appropriate depending on the relationship between the prospective donor and
solicitor
30. Accuracy in constituents' records within an organization's donor database
is best measured by the number of -Answer- valid addresses
31. When an evaluation component is being incorporated into a funding pro-
posal, all of the following steps are necessary except -Answer- stating
objectives as broadly as possible.
1. If a donor states that the amount of money an organization is asking for is
very large, the best response is to tell the prospective donor that -Answer-
the amount is large, but emphasize the value and long term impact of the gift.
2. When is the most appropriate time to begin devoting time and energy into
the development and nurturing of a relationship with a donor?-Answer- -
Answer- Immediately upon receipt of the donor's first gift, irrespective of the gift
size
3. The primary purpose of rating an organization's prospective donors is to
determine their -Answer- potential to give to the organization.
4. When budgeting the costs for a new fundraising software package, in
addition to the initial purchase and upgrades, a fundraiser also should factor
in -Answer- the cost for maintenance and warranties.
5. The primary challenge in maintaining an effective relationship between a
donor and a fundraiser is -Answer- maintaining professional balance in the
relationship.
6. Based on based giving records, a fundraiser is visiting a prospective major
gift donor for the first time. Because the prospective donor has never been
visited by the organization, the most appropriate strategy is to -Answer-
learn about the prospective donor's interests and link to the organization.
7. The most essential factor in sending gift acknowledgement letters is -
Answer- speed of delivery.
8. The first prospects to be asked to support any campaign are the -
Answer- board members
9. In marketing, what does SWOT analysis stands for? -Answer- strength,
weakness, opportunities, threats
10. In order to be effective, it is essential that the vision and mission be
continually expressed by the organization's -Answer- leadership
11. When interviewing prospective fundraising employees, it is most impor-
tant to avoid -Answer- questions that may be construed as personal.
12. When developing a specific solicitation plan for an individual donor,
the most important considerations are -Answer- the connection between a
prospective donor's passion and an organization's need.
13. When soliciting leadership gifts for an organization, it is most important
to -Answer- enlist the prospect's peers to make the visit.
14. A governing board's principal relationship is with the organization's -
,Answer- chief executive officer.
15. Which of the following responses best describes three hidden costs en-
countered in a capital project? -Answer- Fundraising, attrition, and inflation
16. In the context of rating prospective donors, LAI stands for -Answer-
linkage, ability, interest.
, 17. In evaluating fundraising programs, the relationship between fundraising
costs and results is linked to each method used, the maturity of each program,
and -Answer- previous performance.
18. An organization has decided to hire a local fundraising consultant to work
in its office one day per week to oversee and direct a campaign. The CEO
has asked you to ensure the organization's interests are protected. A contract
should be written establishing that the consultant will be paid -Answer- in
accordance with a code of professional ethics.
19. Establishing the financial range of gifts that a donor will reasonably con-
sider is referred to as a donor -Answer- rating
20. The single most important element in a direct mail campaign is -Answer-
the list of prospective new donors.
21. Which method is most effective in establishing a two-way relationship with
a donor? -Answer- Allowing the donor to select the time, frequency and method.
22. In hiring a firm for contracted services, it is best to start with -Answer-
referrals.
23. The most important open line of communication is between the fundrais-
ing director and the organization's -Answer- chief executive officer.
24. Before beginning to write the case for support for an upcoming campaign,
it is most important to -Answer- acquire an understanding of the various donor
target markets.
25. Which of the following is the most critical factor affecting the success of
a capital campaign? -Answer- Leadership by the board.
26. A nonprofit organization considering a new planned giving/legacy pro-
gram must first -Answer- understand it may take years for a return on
investment.
27. The fundraiser has been asked to report on monthly activities. In designing
the written report, what are the best activities to measure? -Answer- Phone
calls, visits, solicitations
28. An integrated approach to fundraising is best described as -Answer-
matching cases with constituencies and setting goals for each segment and
each case or campaign.
29. Which statement is the most true about solo solicitors? -Answer- May be
appropriate depending on the relationship between the prospective donor and
solicitor
30. Accuracy in constituents' records within an organization's donor database
is best measured by the number of -Answer- valid addresses
31. When an evaluation component is being incorporated into a funding pro-
posal, all of the following steps are necessary except -Answer- stating
objectives as broadly as possible.
