CFRE CORE EXAM SET 2026/2027 QUESTIONS AND
SOLUTIONS RATED A+
✔✔bargain sale - ✔✔The sale of property at less than its fair market value. Frequently,
a person will sell property to a 501(c)(3) organization or institution at a " bargain " price
(for example, the individual ' s cost as opposed to its market value). The transaction is
partly a gift and partly a sale.
✔✔benefactor - ✔✔One who makes a major gift to an institution or agency; also, an
arbitrary classifi cation of contributors whose gifts are above a certain level, which is
calculated to single them out as a group and to stimulate similar giving by others.
✔✔benefit event - ✔✔A form of fundraising that involves the organization and staging of
a special event for charitable purposes; all proceeds above expenses are designated as
a contribution to the charitable institution concerned.
✔✔benevolence - ✔✔A disposition to do good; an act of kindness; a generous gift.
✔✔bequest - ✔✔A transfer, by will, of personal property such as cash, securities, or
other tangible property.
✔✔big gifts - ✔✔A general term used to signify gifts in upper ranges, the precise limits
varying from institution to institution. Their importance is emphasized in all fundraising
campaigns.
✔✔board of directors - ✔✔Individuals selected (for example, by other directors or
members) in accordance with law (usually refl ected in bylaws) to establish policy and
oversee the management of an organization or institution.
✔✔book value - ✔✔The amount of an asset stated in a company' s records, not
necessarily the amount it could bring on the open market.
✔✔bricks and mortar - ✔✔Common manner of alluding to the physical plant needs of an
institution and to the campaigns designed to secure the necessary funds. A " bricks and
mortar campaign " is a campaign to raise building funds.
✔✔budget - ✔✔A detailed breakdown of estimated income and expenses for a
development program, prepared in advance. Budgets show various cost categories,
including personnel, printed materials, purchase and rental of equipment, offi ce
expense, headquarters, mailing charges, costs of events, and so on.
✔✔campaign - ✔✔An organized effort to raise funds for a nonprofi t organization.
, ✔✔campaign costs - ✔✔Expenditures that are deemed essential to the planning and
operation of a campaign and that are directly related to campaign budget projections.
✔✔campaign leadership - ✔✔Top volunteers who are an essential ingredient of any
campaign organization and one of the three major pedestals on which fundraising
success must rest, the others being the case and sources of support. Campaign leaders
provide and maintain the momentum and enthusiasm essential to the motivation of the
entire organization of volunteers.
✔✔campaign materials - ✔✔General term used to denote campaign forms of all kinds;
materials required for campaign workers, fact sheets, prospect lists, and numerous
other items essential to the effective functioning of a campaign; printed materials such
as brochures used to advance a campaign.
✔✔capital campaign - ✔✔A carefully organized, highly structured fundraising program
using volunteers supported by staff and consultants to raise funds for specifi c needs, to
be met in a specifi c time frame, with a specifi c dollar goal. Allows donors to pledge
gifts to be paid over a period of years.
✔✔case - ✔✔Carefully prepared reasons why a charitable institution merits support (in
the context of the " case bigger than the institution " ), including its resources, its
potential for greater service, its needs, and its future plans.
✔✔cash flow - ✔✔Predictable cash income to sustain operations; in capital campaigns
or whenever pledges are secured, anticipation of annual cash receipts resulting from
payments on pledges.
✔✔cash gift - ✔✔The simple transfer of cash, check, or currency (other than special
collections) to a gift - supported organization or institution.
✔✔cause related marketing - ✔✔An arrangement that links a product or service with a
social cause to provide the cause with a portion of the,rofi ts received by the
corporation.
✔✔certifi ed fundraising executive (CFRE) - ✔✔A credential granted to a fundraiser by
the Association of Fundraising Professionals, which is based on performance as a
fundraising executive, knowledge of the fundraising fi eld, tenure as a fundraiser
(minimum of fi ve years), education, and service to the profession.
✔✔challenge gift - ✔✔A substantial gift made on condition that other gifts must be
secured, either on a matching basis or some other prescribed formula, usually within a
specifi ed period, with the objective of stimulating fundraising activity generally.
✔✔charitable contribution - ✔✔A donation of something of value to a gift - supported
charitable organization, usually tax - deductible.
SOLUTIONS RATED A+
✔✔bargain sale - ✔✔The sale of property at less than its fair market value. Frequently,
a person will sell property to a 501(c)(3) organization or institution at a " bargain " price
(for example, the individual ' s cost as opposed to its market value). The transaction is
partly a gift and partly a sale.
✔✔benefactor - ✔✔One who makes a major gift to an institution or agency; also, an
arbitrary classifi cation of contributors whose gifts are above a certain level, which is
calculated to single them out as a group and to stimulate similar giving by others.
✔✔benefit event - ✔✔A form of fundraising that involves the organization and staging of
a special event for charitable purposes; all proceeds above expenses are designated as
a contribution to the charitable institution concerned.
✔✔benevolence - ✔✔A disposition to do good; an act of kindness; a generous gift.
✔✔bequest - ✔✔A transfer, by will, of personal property such as cash, securities, or
other tangible property.
✔✔big gifts - ✔✔A general term used to signify gifts in upper ranges, the precise limits
varying from institution to institution. Their importance is emphasized in all fundraising
campaigns.
✔✔board of directors - ✔✔Individuals selected (for example, by other directors or
members) in accordance with law (usually refl ected in bylaws) to establish policy and
oversee the management of an organization or institution.
✔✔book value - ✔✔The amount of an asset stated in a company' s records, not
necessarily the amount it could bring on the open market.
✔✔bricks and mortar - ✔✔Common manner of alluding to the physical plant needs of an
institution and to the campaigns designed to secure the necessary funds. A " bricks and
mortar campaign " is a campaign to raise building funds.
✔✔budget - ✔✔A detailed breakdown of estimated income and expenses for a
development program, prepared in advance. Budgets show various cost categories,
including personnel, printed materials, purchase and rental of equipment, offi ce
expense, headquarters, mailing charges, costs of events, and so on.
✔✔campaign - ✔✔An organized effort to raise funds for a nonprofi t organization.
, ✔✔campaign costs - ✔✔Expenditures that are deemed essential to the planning and
operation of a campaign and that are directly related to campaign budget projections.
✔✔campaign leadership - ✔✔Top volunteers who are an essential ingredient of any
campaign organization and one of the three major pedestals on which fundraising
success must rest, the others being the case and sources of support. Campaign leaders
provide and maintain the momentum and enthusiasm essential to the motivation of the
entire organization of volunteers.
✔✔campaign materials - ✔✔General term used to denote campaign forms of all kinds;
materials required for campaign workers, fact sheets, prospect lists, and numerous
other items essential to the effective functioning of a campaign; printed materials such
as brochures used to advance a campaign.
✔✔capital campaign - ✔✔A carefully organized, highly structured fundraising program
using volunteers supported by staff and consultants to raise funds for specifi c needs, to
be met in a specifi c time frame, with a specifi c dollar goal. Allows donors to pledge
gifts to be paid over a period of years.
✔✔case - ✔✔Carefully prepared reasons why a charitable institution merits support (in
the context of the " case bigger than the institution " ), including its resources, its
potential for greater service, its needs, and its future plans.
✔✔cash flow - ✔✔Predictable cash income to sustain operations; in capital campaigns
or whenever pledges are secured, anticipation of annual cash receipts resulting from
payments on pledges.
✔✔cash gift - ✔✔The simple transfer of cash, check, or currency (other than special
collections) to a gift - supported organization or institution.
✔✔cause related marketing - ✔✔An arrangement that links a product or service with a
social cause to provide the cause with a portion of the,rofi ts received by the
corporation.
✔✔certifi ed fundraising executive (CFRE) - ✔✔A credential granted to a fundraiser by
the Association of Fundraising Professionals, which is based on performance as a
fundraising executive, knowledge of the fundraising fi eld, tenure as a fundraiser
(minimum of fi ve years), education, and service to the profession.
✔✔challenge gift - ✔✔A substantial gift made on condition that other gifts must be
secured, either on a matching basis or some other prescribed formula, usually within a
specifi ed period, with the objective of stimulating fundraising activity generally.
✔✔charitable contribution - ✔✔A donation of something of value to a gift - supported
charitable organization, usually tax - deductible.
