CFRE TEST BANK COMPLETE QUESTIONS
AND SOLUTIONS ALREADY GRADED A+
●● Number of nonprofits registered with IRS
Answer: US: 1.4 mil; 63% registered as 501c3... 161K in Canada
●● Donors give for the following reasons
Answer: 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
Answer: some sort of connection to the org
●● giving may provide
,Answer: some type of return in what the org will do for them or
someone close to them
●● effective fundraisers seek to discover...
Answer: 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
Answer: research, marketing, relationships, ethics & accountability
●● Research supports fundraising by
Answer: 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
Answer: communicate purpose and activities, promote mission and case
for support, encourage participation in fundraising activities, encourage
donations, communicate fundraising results, advocate the case
●● Relationships
,Answer: the heart of fundraising
●● Relationships support fundraising by
Answer: 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
Answer: 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?
Answer: 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?
Answer: 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?
, Answer: 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?
Answer: 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
Answer: the process of gathering, recording, and analyzing information
pertaining to the marketing of goods and services
●● Marketing - a simpler definition
Answer: the process of finding out the wants and needs of current and
potential markets
●● Rosso's Concentric Circles - outer circle
Answer: People with similar interests
●● Rosso's Concentric Circles - at the core - who are these primary
stakeholders?
AND SOLUTIONS ALREADY GRADED A+
●● Number of nonprofits registered with IRS
Answer: US: 1.4 mil; 63% registered as 501c3... 161K in Canada
●● Donors give for the following reasons
Answer: 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
Answer: some sort of connection to the org
●● giving may provide
,Answer: some type of return in what the org will do for them or
someone close to them
●● effective fundraisers seek to discover...
Answer: 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
Answer: research, marketing, relationships, ethics & accountability
●● Research supports fundraising by
Answer: 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
Answer: communicate purpose and activities, promote mission and case
for support, encourage participation in fundraising activities, encourage
donations, communicate fundraising results, advocate the case
●● Relationships
,Answer: the heart of fundraising
●● Relationships support fundraising by
Answer: 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
Answer: 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?
Answer: 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?
Answer: 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?
, Answer: 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?
Answer: 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
Answer: the process of gathering, recording, and analyzing information
pertaining to the marketing of goods and services
●● Marketing - a simpler definition
Answer: the process of finding out the wants and needs of current and
potential markets
●● Rosso's Concentric Circles - outer circle
Answer: People with similar interests
●● Rosso's Concentric Circles - at the core - who are these primary
stakeholders?
