CFRE Practice Exam
1. What is the primary purpose of a capital campaign?
A) To cover day-to-day operational costs
B) To fund long-term, major projects or acquisitions
C) To recruit volunteers
D) To conduct donor recognition events
Answer: B) To fund long-term, major projects or acquisitions
Rationale: Capital campaigns are designed to raise significant funds for major
initiatives such as building construction, endowments, or major equipment.
2. Which of the following is considered a best practice in donor stewardship?
A) Sending one generic thank-you letter per year
B) Personalizing communications and acknowledging gifts promptly
C) Only recognizing large donors
D) Focusing solely on fundraising events
Answer: B) Personalizing communications and acknowledging gifts promptly
Rationale: Effective stewardship involves timely, personalized acknowledgment of
donations and continuous engagement with donors.
3. What is the most effective way to cultivate major gift prospects?
A) Direct mail campaigns
B) Personalized, relationship-driven engagement
C) Mass social media appeals
D) Hosting casual networking events
,Answer: B) Personalized, relationship-driven engagement
Rationale: Major gifts are typically secured through long-term relationships and
personalized strategies rather than broad appeals.
4. Which ethical principle is central to the CFRE Code of Ethics?
A) Maximizing profits
B) Transparency and accountability in fundraising
C) Recruiting new staff quickly
D) Focusing only on wealthy donors
Answer: B) Transparency and accountability in fundraising
Rationale: CFRE-certified professionals uphold honesty, transparency, and ethical
stewardship in all fundraising activities.
5. What metric is most commonly used to assess fundraising efficiency?
A) Number of volunteers recruited
B) Return on Investment (ROI)
C) Donor satisfaction surveys
D) Event attendance
Answer: B) Return on Investment (ROI)
Rationale: ROI measures the cost-effectiveness of fundraising efforts by comparing
funds raised to the cost of fundraising.
6. When planning a fundraising event, what is the most critical factor to consider
first?
A) Selecting a venue
B) Establishing a clear objective and goal
C) Hiring entertainment
D) Designing invitations
, Answer: B) Establishing a clear objective and goal
Rationale: Clear objectives guide planning, budgeting, and execution, ensuring that
the event aligns with organizational priorities.
7. Which type of fundraising is most often associated with recurring revenue and
donor retention?
A) Annual fund campaigns
B) Capital campaigns
C) Special events
D) Corporate sponsorships
Answer: A) Annual fund campaigns
Rationale: Annual funds focus on regular donations, helping to sustain operations
and build long-term donor relationships.
8. What is a key characteristic of a well-segmented donor database?
A) Donor names only
B) Categorization by giving level, interests, and engagement history
C) Donor addresses only
D) Minimal donor information to save time
Answer: B) Categorization by giving level, interests, and engagement history
Rationale: Segmentation allows for targeted cultivation and more effective
fundraising strategies.
9. Which fundraising strategy relies heavily on personal relationships rather than
mass appeals?
A) Direct mail campaigns
B) Major gift fundraising
C) Social media campaigns
D) Text-to-give programs
1. What is the primary purpose of a capital campaign?
A) To cover day-to-day operational costs
B) To fund long-term, major projects or acquisitions
C) To recruit volunteers
D) To conduct donor recognition events
Answer: B) To fund long-term, major projects or acquisitions
Rationale: Capital campaigns are designed to raise significant funds for major
initiatives such as building construction, endowments, or major equipment.
2. Which of the following is considered a best practice in donor stewardship?
A) Sending one generic thank-you letter per year
B) Personalizing communications and acknowledging gifts promptly
C) Only recognizing large donors
D) Focusing solely on fundraising events
Answer: B) Personalizing communications and acknowledging gifts promptly
Rationale: Effective stewardship involves timely, personalized acknowledgment of
donations and continuous engagement with donors.
3. What is the most effective way to cultivate major gift prospects?
A) Direct mail campaigns
B) Personalized, relationship-driven engagement
C) Mass social media appeals
D) Hosting casual networking events
,Answer: B) Personalized, relationship-driven engagement
Rationale: Major gifts are typically secured through long-term relationships and
personalized strategies rather than broad appeals.
4. Which ethical principle is central to the CFRE Code of Ethics?
A) Maximizing profits
B) Transparency and accountability in fundraising
C) Recruiting new staff quickly
D) Focusing only on wealthy donors
Answer: B) Transparency and accountability in fundraising
Rationale: CFRE-certified professionals uphold honesty, transparency, and ethical
stewardship in all fundraising activities.
5. What metric is most commonly used to assess fundraising efficiency?
A) Number of volunteers recruited
B) Return on Investment (ROI)
C) Donor satisfaction surveys
D) Event attendance
Answer: B) Return on Investment (ROI)
Rationale: ROI measures the cost-effectiveness of fundraising efforts by comparing
funds raised to the cost of fundraising.
6. When planning a fundraising event, what is the most critical factor to consider
first?
A) Selecting a venue
B) Establishing a clear objective and goal
C) Hiring entertainment
D) Designing invitations
, Answer: B) Establishing a clear objective and goal
Rationale: Clear objectives guide planning, budgeting, and execution, ensuring that
the event aligns with organizational priorities.
7. Which type of fundraising is most often associated with recurring revenue and
donor retention?
A) Annual fund campaigns
B) Capital campaigns
C) Special events
D) Corporate sponsorships
Answer: A) Annual fund campaigns
Rationale: Annual funds focus on regular donations, helping to sustain operations
and build long-term donor relationships.
8. What is a key characteristic of a well-segmented donor database?
A) Donor names only
B) Categorization by giving level, interests, and engagement history
C) Donor addresses only
D) Minimal donor information to save time
Answer: B) Categorization by giving level, interests, and engagement history
Rationale: Segmentation allows for targeted cultivation and more effective
fundraising strategies.
9. Which fundraising strategy relies heavily on personal relationships rather than
mass appeals?
A) Direct mail campaigns
B) Major gift fundraising
C) Social media campaigns
D) Text-to-give programs
