CFRE – Certified Fund Raising Executive
EXAM PREP 2025/2026 QUESTIONS BANK AND
CORRECT DETAILED ANSWERS WITH RATIONALES
|| 100% GUARANTEED PASS
<LATEST VERSION>
1. Capital Campaign - ANSWER ✔ A carefully organized, highly structured
fundraising program using volunteers supported by staff and consultants to
raise funds for specific needs, to be met in a specific time frame, with a
specific dollar goal. Allows donors to pledge gifts to be paid over a period of
years.
2. Community Foundation - ANSWER ✔ A philanthropic foundation that is
specifically committed to the support of institutions in it's own community,
often receiving bequest from persons whose legacy is modest.
3. Corporate philanthropy - ANSWER ✔ Supporting gifts, equipment supplies
or other contributions by business firms to charitable institutions, sometimes
through organized program that may include corp. foundations.
4. Endowment - ANSWER ✔ Principal or corpus maintained in a permanent
fund to provide income for general or restricted use of an agency, institution,
or program.
5. 3 aspects to fundraiser's work - ANSWER ✔ -Cultivation - engage + grow
interest and involvement
-Solicitation - asking for support
Stewardship - strengthen the relation with the donor, acknowledging gifts,
informing donor
6. Charitable Instruments - ANSWER ✔ Bequests beneficiary designations,
charitable gift annuities and charitable trusts. Wills, revocable trusts,
charitable gift annuities, gift of home or farm retaining a life estate, POD
,7. Planned Gift - ANSWER ✔ A gift provided for legally during the donor's
lifetime, but whose principal benefits do not accrue to the institution until
some future time, usually at the death of the donor and/or his/her income
beneficiary
8. Planned Giving - ANSWER ✔ The application of sound personal, financial,
and estate planning concepts to the individual donor's plans for lifetime and
testamentary giving.
9. Annual Giving - ANSWER ✔ Seeking funds annually or recurring. Income
generally used for operating support
10.Major Gifts - ANSWER ✔ A gift of significant amount (size of gift may
vary according to organization's needs and goals); may be repeated
periodically. Also a program designation.
11.Constituency - ANSWER ✔ All people who is some fashion been involved
with an institution - members, contributors, participants, clients, and
relatives of clients.
12.Board roles - ANSWER ✔ legal, stewardship (mission/program, resources),
self-renewal
13.Board fundraising responsibilities - ANSWER ✔ Ensuring fundraising plans
are sound and engage in fundraising activities
14.appreciated real property and securities gift - ANSWER ✔ Gifts of real
estate or securities, which when held long term are deductible for federal
income tax purposes at the full fair market value with no capital gain on the
appreciation. However, the appreciation is a tax preference item, and proper
counsel should be obtained to evaluate whether this would have alternative
minimum tax consequences.
15.What is the recommended time to acknowledge a gift? - ANSWER ✔ 48
hours
16.When do you start devoting time to building a relationship? - ANSWER ✔
immediately upon receipt of a donor's first gift, irrespective of size.
,17.When does stewardship begin? - ANSWER ✔ with the donor's first gift
18.What is the most important step in building a relationship with a donor? -
ANSWER ✔ a donor's desire
19.2 way relationships - ANSWER ✔ is essential to building a long term
partnership and allowing the donor to select time, frequency and method
20.What is essential to build a relationship with a donor? - ANSWER ✔ regular
and consistent communications which is cultivation and stewardship
21.What does a healthy philanthropic environment foster? - ANSWER ✔
successful fundraising efforts based on donor needs and interests
22.What is the most appropriate way to cultivate a prospective donor for a
major gift? - ANSWER ✔ arrange a personal meeting with the ED, followed
by a tour
23.Why are building a network of professional advisers important? - ANSWER
✔ to an NPOs marketing plan and future of the NPO
24.How to increase awareness of an NPO? - ANSWER ✔ create an effective
marketing and communications program
25.What is the first step in a comprehensive marketing plan? - ANSWER ✔
Review and update the DB and ensure record keeping procedures are
established
26.What is important in the cultivation plan? - ANSWER ✔ to involve the
prospective major donor when developing the relationship between donor
and org
27.With whom do you begin when seeking to revise the current MG fundraising
program? - ANSWER ✔ current and past donors
28.What is cause related marketing? - ANSWER ✔ passion marketing
a formal contract between a corporation and NPO to encourage product sales
, 29.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.
30.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
31.The primary purpose of rating an organization's prospective donors is to
determine their: - ANSWER ✔ potential to give to the organization.
32.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.
33.The primary challenge in maintaining an effective relationship between a
donor and a fundraiser is: - ANSWER ✔ maintaining professional balance in
the relationship.
34.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.
35.The most essential factor in sending gift acknowledgement letters is: -
ANSWER ✔ speed of delivery.
36.The first prospects to be asked to support any campaign are the: - ANSWER
✔ board members
37.In marketing, what does SWOT analysis stands for? - ANSWER ✔ strength,
weakness, opportunities, threats
38.In order to be effective, it is essential that the vision and mission be
continually expressed by the organization's: - ANSWER ✔ leadership
EXAM PREP 2025/2026 QUESTIONS BANK AND
CORRECT DETAILED ANSWERS WITH RATIONALES
|| 100% GUARANTEED PASS
<LATEST VERSION>
1. Capital Campaign - ANSWER ✔ A carefully organized, highly structured
fundraising program using volunteers supported by staff and consultants to
raise funds for specific needs, to be met in a specific time frame, with a
specific dollar goal. Allows donors to pledge gifts to be paid over a period of
years.
2. Community Foundation - ANSWER ✔ A philanthropic foundation that is
specifically committed to the support of institutions in it's own community,
often receiving bequest from persons whose legacy is modest.
3. Corporate philanthropy - ANSWER ✔ Supporting gifts, equipment supplies
or other contributions by business firms to charitable institutions, sometimes
through organized program that may include corp. foundations.
4. Endowment - ANSWER ✔ Principal or corpus maintained in a permanent
fund to provide income for general or restricted use of an agency, institution,
or program.
5. 3 aspects to fundraiser's work - ANSWER ✔ -Cultivation - engage + grow
interest and involvement
-Solicitation - asking for support
Stewardship - strengthen the relation with the donor, acknowledging gifts,
informing donor
6. Charitable Instruments - ANSWER ✔ Bequests beneficiary designations,
charitable gift annuities and charitable trusts. Wills, revocable trusts,
charitable gift annuities, gift of home or farm retaining a life estate, POD
,7. Planned Gift - ANSWER ✔ A gift provided for legally during the donor's
lifetime, but whose principal benefits do not accrue to the institution until
some future time, usually at the death of the donor and/or his/her income
beneficiary
8. Planned Giving - ANSWER ✔ The application of sound personal, financial,
and estate planning concepts to the individual donor's plans for lifetime and
testamentary giving.
9. Annual Giving - ANSWER ✔ Seeking funds annually or recurring. Income
generally used for operating support
10.Major Gifts - ANSWER ✔ A gift of significant amount (size of gift may
vary according to organization's needs and goals); may be repeated
periodically. Also a program designation.
11.Constituency - ANSWER ✔ All people who is some fashion been involved
with an institution - members, contributors, participants, clients, and
relatives of clients.
12.Board roles - ANSWER ✔ legal, stewardship (mission/program, resources),
self-renewal
13.Board fundraising responsibilities - ANSWER ✔ Ensuring fundraising plans
are sound and engage in fundraising activities
14.appreciated real property and securities gift - ANSWER ✔ Gifts of real
estate or securities, which when held long term are deductible for federal
income tax purposes at the full fair market value with no capital gain on the
appreciation. However, the appreciation is a tax preference item, and proper
counsel should be obtained to evaluate whether this would have alternative
minimum tax consequences.
15.What is the recommended time to acknowledge a gift? - ANSWER ✔ 48
hours
16.When do you start devoting time to building a relationship? - ANSWER ✔
immediately upon receipt of a donor's first gift, irrespective of size.
,17.When does stewardship begin? - ANSWER ✔ with the donor's first gift
18.What is the most important step in building a relationship with a donor? -
ANSWER ✔ a donor's desire
19.2 way relationships - ANSWER ✔ is essential to building a long term
partnership and allowing the donor to select time, frequency and method
20.What is essential to build a relationship with a donor? - ANSWER ✔ regular
and consistent communications which is cultivation and stewardship
21.What does a healthy philanthropic environment foster? - ANSWER ✔
successful fundraising efforts based on donor needs and interests
22.What is the most appropriate way to cultivate a prospective donor for a
major gift? - ANSWER ✔ arrange a personal meeting with the ED, followed
by a tour
23.Why are building a network of professional advisers important? - ANSWER
✔ to an NPOs marketing plan and future of the NPO
24.How to increase awareness of an NPO? - ANSWER ✔ create an effective
marketing and communications program
25.What is the first step in a comprehensive marketing plan? - ANSWER ✔
Review and update the DB and ensure record keeping procedures are
established
26.What is important in the cultivation plan? - ANSWER ✔ to involve the
prospective major donor when developing the relationship between donor
and org
27.With whom do you begin when seeking to revise the current MG fundraising
program? - ANSWER ✔ current and past donors
28.What is cause related marketing? - ANSWER ✔ passion marketing
a formal contract between a corporation and NPO to encourage product sales
, 29.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.
30.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
31.The primary purpose of rating an organization's prospective donors is to
determine their: - ANSWER ✔ potential to give to the organization.
32.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.
33.The primary challenge in maintaining an effective relationship between a
donor and a fundraiser is: - ANSWER ✔ maintaining professional balance in
the relationship.
34.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.
35.The most essential factor in sending gift acknowledgement letters is: -
ANSWER ✔ speed of delivery.
36.The first prospects to be asked to support any campaign are the: - ANSWER
✔ board members
37.In marketing, what does SWOT analysis stands for? - ANSWER ✔ strength,
weakness, opportunities, threats
38.In order to be effective, it is essential that the vision and mission be
continually expressed by the organization's: - ANSWER ✔ leadership
