CFRE fundraising certification Pre-Course CFRE
Study Guide Questions with Verified Accuracy
Answers 2025/2026
Governance - correct answer oversight by those persons who constitute
the governing authority of an organization or institution.
Grant - correct answer generally an allocation from a foundation,
corporation, or government agency.
Grassroots fundraising - correct answer raising modest amounts of money
from individuals or groups from the local community on a broad basis.
Usually done within a specific constituency or among people who live in the
neighborhood served or who are clients. Common grassroots fundraising
activities include membership drives, raffles, bake sales, auctions, benefits,
and dances.
House file - correct answer the names and addresses of active and
recently lapsed donors and members of an organization.
Identification - correct answer the process of ascertaining, through
investigation, research, and analysis, which of various candidates appear
to be most promising as prospective leaders, workers, and donors.
Independent sector - correct answer a term used to describe all nonprofit
organizations, as distinct from government and corporations formed to
make a profit, also called the third sector ; not to be confused with the
organization independent sector.
,Indicia - correct answer mark on an envelope indicating a nonprofit
mailing permit for reduced rate bulk mailing; used in place of stamps or
meters.
Involvement - correct answer the calculated effort, perennially undertaken
by development offices, to stimulate interest and enthusiasm on the part of
prospective donors and candidates for volunteer leadership through active
participation in institutional affairs; an extension of cultivation.
Lai principle - correct answer the fundraising axiom of qualifying prospects
on the basis of linkages, ability, and interest.
Leadership - correct answer the force within an institution, agency,
program, or fundraising campaign that stimulates others to act or give.
Leadership gift - correct answer normally, the second tier of gifts to a
campaign that will inspire extraordinary giving by subsequent donors.
Legacy - correct answer a disposition in a will of personal property. A
demonstrative legacy is a legacy payable primarily out of a specific fund. A
specific legacy is a legacy of a particular article or specified part of the
estate.
Letter of inquiry - correct answer a letter sent by an organization to a
foundation or corporation presenting a project for which funding is being
sought and asking the foundation or corporation if they will consider funding
the project or receiving a full proposal.
Letter of intent - correct answer a pledge form stated in less formal,
nonlegalistic terms for use by potential donors who view the pledge card as
, a contract and refuse to commit themselves to multiple - year gift payments
because of this contractual aspect.
Lia principle - correct answer the fundraising axiom of separating
advocates and askers from donors on the basis of linkage, involvement,
and advocacy.
Life income gift - correct answer an irrevocable gift of cash, securities, or
real estate to a gift - supported organization, with the donor receiving
income from the donated assets for a period of time through an annuity or
trust arrangement for him - or herself or other beneficiaries.
Life income pooled trusts - correct answer a charitable remainder trust
that holds the commingled irrevocable gifts of donors who receive income
annually based on the earnings of the trust and their individual entitlement
as participants. On termination of an income interest, the underlying
property is transferred to a charitable organization or institution.
Life insurance gifts - correct answer the irrevocable assignment of a life
insurance policy for charitable disposition for which the present value is
fully tax - deductible, as are the premiums paid by the donor.
Life interest - correct answer an interest or claim that does not amount to
ownership and that is held only for the duration of the life of the person to
whom the interest is given or for the duration of the life of another person;
an interest in property for life.
Lybunts - correct answer acronym for donors who gave " last year but not
this" year.
Study Guide Questions with Verified Accuracy
Answers 2025/2026
Governance - correct answer oversight by those persons who constitute
the governing authority of an organization or institution.
Grant - correct answer generally an allocation from a foundation,
corporation, or government agency.
Grassroots fundraising - correct answer raising modest amounts of money
from individuals or groups from the local community on a broad basis.
Usually done within a specific constituency or among people who live in the
neighborhood served or who are clients. Common grassroots fundraising
activities include membership drives, raffles, bake sales, auctions, benefits,
and dances.
House file - correct answer the names and addresses of active and
recently lapsed donors and members of an organization.
Identification - correct answer the process of ascertaining, through
investigation, research, and analysis, which of various candidates appear
to be most promising as prospective leaders, workers, and donors.
Independent sector - correct answer a term used to describe all nonprofit
organizations, as distinct from government and corporations formed to
make a profit, also called the third sector ; not to be confused with the
organization independent sector.
,Indicia - correct answer mark on an envelope indicating a nonprofit
mailing permit for reduced rate bulk mailing; used in place of stamps or
meters.
Involvement - correct answer the calculated effort, perennially undertaken
by development offices, to stimulate interest and enthusiasm on the part of
prospective donors and candidates for volunteer leadership through active
participation in institutional affairs; an extension of cultivation.
Lai principle - correct answer the fundraising axiom of qualifying prospects
on the basis of linkages, ability, and interest.
Leadership - correct answer the force within an institution, agency,
program, or fundraising campaign that stimulates others to act or give.
Leadership gift - correct answer normally, the second tier of gifts to a
campaign that will inspire extraordinary giving by subsequent donors.
Legacy - correct answer a disposition in a will of personal property. A
demonstrative legacy is a legacy payable primarily out of a specific fund. A
specific legacy is a legacy of a particular article or specified part of the
estate.
Letter of inquiry - correct answer a letter sent by an organization to a
foundation or corporation presenting a project for which funding is being
sought and asking the foundation or corporation if they will consider funding
the project or receiving a full proposal.
Letter of intent - correct answer a pledge form stated in less formal,
nonlegalistic terms for use by potential donors who view the pledge card as
, a contract and refuse to commit themselves to multiple - year gift payments
because of this contractual aspect.
Lia principle - correct answer the fundraising axiom of separating
advocates and askers from donors on the basis of linkage, involvement,
and advocacy.
Life income gift - correct answer an irrevocable gift of cash, securities, or
real estate to a gift - supported organization, with the donor receiving
income from the donated assets for a period of time through an annuity or
trust arrangement for him - or herself or other beneficiaries.
Life income pooled trusts - correct answer a charitable remainder trust
that holds the commingled irrevocable gifts of donors who receive income
annually based on the earnings of the trust and their individual entitlement
as participants. On termination of an income interest, the underlying
property is transferred to a charitable organization or institution.
Life insurance gifts - correct answer the irrevocable assignment of a life
insurance policy for charitable disposition for which the present value is
fully tax - deductible, as are the premiums paid by the donor.
Life interest - correct answer an interest or claim that does not amount to
ownership and that is held only for the duration of the life of the person to
whom the interest is given or for the duration of the life of another person;
an interest in property for life.
Lybunts - correct answer acronym for donors who gave " last year but not
this" year.
