CFRE – all Exam with Complete
Solutions
Philanthropy - ANS-voluntary action for the common good... - Robert L. Payton, as
quoted in Greenfield's Fundraising Fundamentals
Number of nonprofits registered with IRS - ANS-US: 1.4 mil; 63% registered as 501c3...
161K in Canada
Donors give for the following reasons - ANS-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
giving nearly always implies - ANS-some sort of connection to the org
giving may provide - ANS-some type of return in what the org will do for them or
someone close to them
effective fundraisers seek to discover... - ANS-what is important to any potential donor,
and tap that need to encourage and support giving. This requires being able to look at
the org's mission and programs through the eyes of the donor rather that from the
perspective of those who run the org.
key activities in fundraising - ANS-research, marketing, relationships, ethics &
accountability
Research supports fundraising by - ANS-identifying stakeholders and potential donors,
providing info about stakeholders, ensuring appropriate resource allocation, planning,
evaluation, rating stakeholders for relationship building and service priorities
Roles of marketing in fundraising - ANS-communicate purpose and activities, promote
mission and case for support, encourage participation in fundraising activities,
encourage donations, communicate fundraising results, advocate the case
,Relationships - ANS-the heart of fundraising
Relationships support fundraising by - ANS-adding prospects and developing them into
active/regular donors, support other types of contributions, engage stakeholders in the
organization, integrate with research and marketing, allow getting to know prospects
and interests, support stewardship
ethics and accountability ensure - ANS-stakeholder trust and confidence, assets are
managed and accounted for data collected and used properly, donor privacy and rights
maintained, reporting/other requirements fulfilled, programs executed as promised,
donors are retained
Why research? - ANS-ensures appropriate resource allocation, helps build staff and
volunteer confidence, adds element of joy an discovery to prospecting
How does Research ensure appropriate resource allocation? - ANS-allows
staff/volunteers to focus efforts on prospects who can provide the most good.... Helps in
planning how to use volunteers in the organization (number and types of volunteers
needed)
How does Research help build staff and volunteer confidence? - ANS-Backed by good
information, the process of cultivation and solicitation has greater chances for success.
How does good Research add an element of joy and discovery to prospecting? - ANS-
adds confidence, which eliminates anticipation of prospecting as a chore, makes it more
like solving a good mystery - with whom can we successfully connect? How can we
make our case compelling? How much will they give?
Marketing - a formal definition - ANS-the process of gathering, recording, and analyzing
information pertaining to the marketing of goods and services
Marketing - a simpler definition - ANS-the process of finding out the wants and needs of
current and potential markets
Rosso's Concentric Circles - outer circle - ANS-People with similar interests
Rosso's Concentric Circles - at the core - who are these primary stakeholders? - ANS-
Major Donors, Board, Management Staff (these people have the responsibility to bring
those in the outer circles closer)
Rosso's Concentric Circles - second to outer circle - ANS-Former Participants
Rosso's Concentric Circles - closes to core - ANS-Clients, Members, Employees,
Volunteers, General Donors
,Critical Factors for a Philanthropy-Friendly Environment - ANS-donor-focused
research... targeted cases, constituents, methods... strategic communications...
stewardship - the most important of all
The critical balance - ANS-Development professionals must find a way to balance the
needs of the community with the interests/needs of donors and the needs of the
organization
Prospecting: the definition - ANS-The systematic acquisition and recording of data that
forms the basis for establishing, maintaining, and expanding the long-term gift
relationship, with the ultimate goal of converting donors into major gift donors (looking
for the fundraising gold!)
7 points of constituency development - ANS-Identify fundable projects (part of org's
strategic plan and objectives)... match prospects to projects (use Rosso's model)...
Conduct research in ways that are: thorough and realistic, cumulative and ongoing
(keep current), organized, ethical and confidential... Identify opportunities to involve
prospects
What's the difference in a Prospect (suspect) and a Qualified Prospect? - ANS-
Prospect/suspect is a possible source of support whose philanthropic interests appear
to be a match with your organization, whose ability to give, interests, and linkages have
not been qualified via research..... Whereas a Qualified Prospect is a prospect who
continues to qualify as a logical source of support for the organization throughout a
research, evaluation, and cultivation process
the best research method depends on... - ANS-the org's scope, resources and
objectives... and on whether prospects are individuals, business/corp's, foundations,
gov agencies, or other nonprofits
Research methods to consider... - ANS-mailed/electronic questionnaires... internet
databases... in person interviews... telephone interviews
Four sources of information for Research - ANS-1. Personal contacts (conversations,
interviews, surveys)... 2. Publications/reports (journals, newspapers, directories,
magazines, philanthropic directories, annual reports, corp/foundation community
involvement reports... 3. Participation records (event attendees, program participants,
those who inquire)... 4. Public information
information to include in a useful prospect profile - ANS-complete contact info,
biographical data, business history, giving history with your org, cultivation/solicitation
contact records, publicly available giving info from other orgs, sources of info checked
for prospect and most recent review dates, general and specific interests
, Research pitfalls - ANS-putting off research until you "have time", expecting interns or
new volunteers to know what to gather, sending out cultivation/solicitation teams with
incorrect information, trying to find out everything about everybody
Prospect/donor profiles help you select the right... - ANS-right person... to ask the right
person... at the right time... in the right way... for the right amount
Inquiries to use in researching foundations... - ANS-is there support for similar
agencies?... Does the foundation clearly state support for the type of project and/or
contribution sought?... Is funding provided in the org's geographic area?... Is the request
amount compatible with prior giving history?
Inquiries to use in researching corporations... - ANS-are board members affiliated with
company?... Are services used by employees and dependents?... Are current
donors/volunteers employed or have affiliations?... Does the organization purchase
company products?... Does corporate interest match products/services?... are donation
decisions made locally or at corporate level?... are needs and priorities of two entities
aligned?
Using electronic data enhancement... - ANS-analysis of giving history and donor
information... screening of prospect/donors to identify "wealth indicators"... data
gathering from a variety of sources enhances the in-house database... resulting in a
need to be more strategic.
3 primary types of giving campaigns - ANS-Annual Giving, Capital/Major Campaigns,
Planned Giving
What is the "workhorse" fundraising tool of every org? - ANS-Annual Giving - typically
provides operating support for ongoing programs. Essential first stage that precedes all
others.
Which type of giving campaign is ideal for first-time donors to get them started, and for
those you are seeking to upgrade? - ANS-Annual Giving
What is the "special needs" fundraising campaign... generally having a specific purpose
and running a specific time period? - ANS-Capital/Major Campaign
Which type of campaign lays the groundwork for involving new volunteers and donors
and sets the stage for increased giving? - ANS-Capital/Major Campaign
What is the bedrock on which fundraising campaigns are built, and which supports and
informs everything you do? - ANS-Research
Marketing emerges from which 2 plans? - ANS-the Strategic Plan and the Development
Plan
Solutions
Philanthropy - ANS-voluntary action for the common good... - Robert L. Payton, as
quoted in Greenfield's Fundraising Fundamentals
Number of nonprofits registered with IRS - ANS-US: 1.4 mil; 63% registered as 501c3...
161K in Canada
Donors give for the following reasons - ANS-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
giving nearly always implies - ANS-some sort of connection to the org
giving may provide - ANS-some type of return in what the org will do for them or
someone close to them
effective fundraisers seek to discover... - ANS-what is important to any potential donor,
and tap that need to encourage and support giving. This requires being able to look at
the org's mission and programs through the eyes of the donor rather that from the
perspective of those who run the org.
key activities in fundraising - ANS-research, marketing, relationships, ethics &
accountability
Research supports fundraising by - ANS-identifying stakeholders and potential donors,
providing info about stakeholders, ensuring appropriate resource allocation, planning,
evaluation, rating stakeholders for relationship building and service priorities
Roles of marketing in fundraising - ANS-communicate purpose and activities, promote
mission and case for support, encourage participation in fundraising activities,
encourage donations, communicate fundraising results, advocate the case
,Relationships - ANS-the heart of fundraising
Relationships support fundraising by - ANS-adding prospects and developing them into
active/regular donors, support other types of contributions, engage stakeholders in the
organization, integrate with research and marketing, allow getting to know prospects
and interests, support stewardship
ethics and accountability ensure - ANS-stakeholder trust and confidence, assets are
managed and accounted for data collected and used properly, donor privacy and rights
maintained, reporting/other requirements fulfilled, programs executed as promised,
donors are retained
Why research? - ANS-ensures appropriate resource allocation, helps build staff and
volunteer confidence, adds element of joy an discovery to prospecting
How does Research ensure appropriate resource allocation? - ANS-allows
staff/volunteers to focus efforts on prospects who can provide the most good.... Helps in
planning how to use volunteers in the organization (number and types of volunteers
needed)
How does Research help build staff and volunteer confidence? - ANS-Backed by good
information, the process of cultivation and solicitation has greater chances for success.
How does good Research add an element of joy and discovery to prospecting? - ANS-
adds confidence, which eliminates anticipation of prospecting as a chore, makes it more
like solving a good mystery - with whom can we successfully connect? How can we
make our case compelling? How much will they give?
Marketing - a formal definition - ANS-the process of gathering, recording, and analyzing
information pertaining to the marketing of goods and services
Marketing - a simpler definition - ANS-the process of finding out the wants and needs of
current and potential markets
Rosso's Concentric Circles - outer circle - ANS-People with similar interests
Rosso's Concentric Circles - at the core - who are these primary stakeholders? - ANS-
Major Donors, Board, Management Staff (these people have the responsibility to bring
those in the outer circles closer)
Rosso's Concentric Circles - second to outer circle - ANS-Former Participants
Rosso's Concentric Circles - closes to core - ANS-Clients, Members, Employees,
Volunteers, General Donors
,Critical Factors for a Philanthropy-Friendly Environment - ANS-donor-focused
research... targeted cases, constituents, methods... strategic communications...
stewardship - the most important of all
The critical balance - ANS-Development professionals must find a way to balance the
needs of the community with the interests/needs of donors and the needs of the
organization
Prospecting: the definition - ANS-The systematic acquisition and recording of data that
forms the basis for establishing, maintaining, and expanding the long-term gift
relationship, with the ultimate goal of converting donors into major gift donors (looking
for the fundraising gold!)
7 points of constituency development - ANS-Identify fundable projects (part of org's
strategic plan and objectives)... match prospects to projects (use Rosso's model)...
Conduct research in ways that are: thorough and realistic, cumulative and ongoing
(keep current), organized, ethical and confidential... Identify opportunities to involve
prospects
What's the difference in a Prospect (suspect) and a Qualified Prospect? - ANS-
Prospect/suspect is a possible source of support whose philanthropic interests appear
to be a match with your organization, whose ability to give, interests, and linkages have
not been qualified via research..... Whereas a Qualified Prospect is a prospect who
continues to qualify as a logical source of support for the organization throughout a
research, evaluation, and cultivation process
the best research method depends on... - ANS-the org's scope, resources and
objectives... and on whether prospects are individuals, business/corp's, foundations,
gov agencies, or other nonprofits
Research methods to consider... - ANS-mailed/electronic questionnaires... internet
databases... in person interviews... telephone interviews
Four sources of information for Research - ANS-1. Personal contacts (conversations,
interviews, surveys)... 2. Publications/reports (journals, newspapers, directories,
magazines, philanthropic directories, annual reports, corp/foundation community
involvement reports... 3. Participation records (event attendees, program participants,
those who inquire)... 4. Public information
information to include in a useful prospect profile - ANS-complete contact info,
biographical data, business history, giving history with your org, cultivation/solicitation
contact records, publicly available giving info from other orgs, sources of info checked
for prospect and most recent review dates, general and specific interests
, Research pitfalls - ANS-putting off research until you "have time", expecting interns or
new volunteers to know what to gather, sending out cultivation/solicitation teams with
incorrect information, trying to find out everything about everybody
Prospect/donor profiles help you select the right... - ANS-right person... to ask the right
person... at the right time... in the right way... for the right amount
Inquiries to use in researching foundations... - ANS-is there support for similar
agencies?... Does the foundation clearly state support for the type of project and/or
contribution sought?... Is funding provided in the org's geographic area?... Is the request
amount compatible with prior giving history?
Inquiries to use in researching corporations... - ANS-are board members affiliated with
company?... Are services used by employees and dependents?... Are current
donors/volunteers employed or have affiliations?... Does the organization purchase
company products?... Does corporate interest match products/services?... are donation
decisions made locally or at corporate level?... are needs and priorities of two entities
aligned?
Using electronic data enhancement... - ANS-analysis of giving history and donor
information... screening of prospect/donors to identify "wealth indicators"... data
gathering from a variety of sources enhances the in-house database... resulting in a
need to be more strategic.
3 primary types of giving campaigns - ANS-Annual Giving, Capital/Major Campaigns,
Planned Giving
What is the "workhorse" fundraising tool of every org? - ANS-Annual Giving - typically
provides operating support for ongoing programs. Essential first stage that precedes all
others.
Which type of giving campaign is ideal for first-time donors to get them started, and for
those you are seeking to upgrade? - ANS-Annual Giving
What is the "special needs" fundraising campaign... generally having a specific purpose
and running a specific time period? - ANS-Capital/Major Campaign
Which type of campaign lays the groundwork for involving new volunteers and donors
and sets the stage for increased giving? - ANS-Capital/Major Campaign
What is the bedrock on which fundraising campaigns are built, and which supports and
informs everything you do? - ANS-Research
Marketing emerges from which 2 plans? - ANS-the Strategic Plan and the Development
Plan
