CFRE Practice ExamQuestions and Answers with
complete solution
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.
When is the most appropriate time to begin devoting time and energy into the development
and nurturing of a relationship with a donor? - ANSWER>>Immediately upon receipt of the
donor's first gift, irrespective of the gift size
The primary purpose of rating an organization's prospective donors is to determine their: -
ANSWER>>potential to give to the organization.
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.
The primary challenge in maintaining an effective relationship between a donor and a
fundraiser is: - ANSWER>>maintaining professional balance in the relationship.
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.
The most essential factor in sending gift acknowledgement letters is: - ANSWER>>speed of
delivery.
The first prospects to be asked to support any campaign are the: - ANSWER>>board members
In marketing, what does SWOT analysis stands for? - ANSWER>>strength, weakness,
opportunities, threats
In order to be effective, it is essential that the vision and mission be continually expressed by
the organization's: - ANSWER>>leadership
,When interviewing prospective fundraising employees, it is most important to avoid: -
ANSWER>>questions that may be construed as personal.
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.
When soliciting leadership gifts for an organization, it is most important to: - ANSWER>>enlist
the prospect's peers to make the visit.
A governing board's principal relationship is with the organization's: - ANSWER>>chief executive
officer.
Which of the following responses best describes three hidden costs encountered in a capital
project? - ANSWER>>Fundraising, attrition, and inflation
In the context of rating prospective donors, LAI stands for: - ANSWER>>linkage, ability, interest.
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.
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.
Establishing the financial range of gifts that a donor will reasonably consider is referred to as a
donor: - ANSWER>>rating
The single most important element in a direct mail campaign is: - ANSWER>>the list of
prospective new donors.
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.
In hiring a firm for contracted services, it is best to start with: - ANSWER>>referrals.
, The most important open line of communication is between the fundraising director and the
organization's - ANSWER>>chief executive officer.
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.
Which of the following is the most critical factor affecting the success of a capital campaign? -
ANSWER>>Leadership by the board.
A nonprofit organization considering a new planned giving/legacy program must first: -
ANSWER>>understand it may take years for a return on investment.
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
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.
Which statement is the most true about solo solicitors? - ANSWER>>May be appropriate
depending on the relationship between the prospective donor and solicitor
Accuracy in constituents' records within an organization's donor database is best measured by
the number of: - ANSWER>>valid addresses
When an evaluation component is being incorporated into a funding proposal, all of the
following steps are necessary except: - ANSWER>>stating objectives as broadly as possible.
Effective use of volunteers is essential to fundraising success. Which is the most important rule
in using volunteers? - ANSWER>>Avoid wasting volunteer's time.
What is the best indicator of an individual's capacity for support? - ANSWER>>level of personal
wealth
An organization is faced with embarrassment due to public knowledge that an audit has raised
questions about the expenditures of government grants. Concerned about donor reaction, the
organization should: - ANSWER>>be open and forthright in publicly stating its position.
complete solution
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.
When is the most appropriate time to begin devoting time and energy into the development
and nurturing of a relationship with a donor? - ANSWER>>Immediately upon receipt of the
donor's first gift, irrespective of the gift size
The primary purpose of rating an organization's prospective donors is to determine their: -
ANSWER>>potential to give to the organization.
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.
The primary challenge in maintaining an effective relationship between a donor and a
fundraiser is: - ANSWER>>maintaining professional balance in the relationship.
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.
The most essential factor in sending gift acknowledgement letters is: - ANSWER>>speed of
delivery.
The first prospects to be asked to support any campaign are the: - ANSWER>>board members
In marketing, what does SWOT analysis stands for? - ANSWER>>strength, weakness,
opportunities, threats
In order to be effective, it is essential that the vision and mission be continually expressed by
the organization's: - ANSWER>>leadership
,When interviewing prospective fundraising employees, it is most important to avoid: -
ANSWER>>questions that may be construed as personal.
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.
When soliciting leadership gifts for an organization, it is most important to: - ANSWER>>enlist
the prospect's peers to make the visit.
A governing board's principal relationship is with the organization's: - ANSWER>>chief executive
officer.
Which of the following responses best describes three hidden costs encountered in a capital
project? - ANSWER>>Fundraising, attrition, and inflation
In the context of rating prospective donors, LAI stands for: - ANSWER>>linkage, ability, interest.
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.
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.
Establishing the financial range of gifts that a donor will reasonably consider is referred to as a
donor: - ANSWER>>rating
The single most important element in a direct mail campaign is: - ANSWER>>the list of
prospective new donors.
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.
In hiring a firm for contracted services, it is best to start with: - ANSWER>>referrals.
, The most important open line of communication is between the fundraising director and the
organization's - ANSWER>>chief executive officer.
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.
Which of the following is the most critical factor affecting the success of a capital campaign? -
ANSWER>>Leadership by the board.
A nonprofit organization considering a new planned giving/legacy program must first: -
ANSWER>>understand it may take years for a return on investment.
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
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.
Which statement is the most true about solo solicitors? - ANSWER>>May be appropriate
depending on the relationship between the prospective donor and solicitor
Accuracy in constituents' records within an organization's donor database is best measured by
the number of: - ANSWER>>valid addresses
When an evaluation component is being incorporated into a funding proposal, all of the
following steps are necessary except: - ANSWER>>stating objectives as broadly as possible.
Effective use of volunteers is essential to fundraising success. Which is the most important rule
in using volunteers? - ANSWER>>Avoid wasting volunteer's time.
What is the best indicator of an individual's capacity for support? - ANSWER>>level of personal
wealth
An organization is faced with embarrassment due to public knowledge that an audit has raised
questions about the expenditures of government grants. Concerned about donor reaction, the
organization should: - ANSWER>>be open and forthright in publicly stating its position.
