CFRE Intensive Exam Questions With 100% Correct Answers

CFRE Intensive Exam Questions With 100% Correct Answers What is LAI? How does it relate to prospect research? - answerLAI: linkage, ability, interest LAI is the basis of properly qualifying prospects. The most suitable prospect that an org can have is when all 3 aspects of LAI are present. Out of the 3, interest is the most important factor when qualifying your prospect. How does research ensure appropriate resource allocation? - answerResearch is the bedrock on which fundraising campaigns are built. - the basis for creating development, cultivation, and solicitation plans - allows staff/volunteers to focus efforts on prospects who can provide the most impact - helps in planning on how to use volunteers - allocates resources to the most promising prospects What are the 5 sources of information about prospects? - answer1. Personal contacts 2. Participation records 3. Public information 4. Peers/advisors/experts 5. Publications/reports What are the components of a prospect profile? - answer- complete contact information - biographical data - giving history - business history - cultivation/solicitation contact records - publicly available giving information from other orgs - sources of info (peer screening) - general and specific interests How does research support planning? - answer- research helps you discover what you need to know to plan and implement campaigns/products/services - helps evaluate the campaigns when results are compares with wants and needs - it supports modifying plans and strategies as conditions change What donor information do you need to track? - answer- restricted and unrestricted funds - the date and amount of gifts - giving levels to ensure donors are recognized - history and status Why is Rosso's concentric circle so useful? - answer- It helps you narrow down the list of prospective donors - Sets priorities - Defines a strong list of targeted audiences - Figures out how to reach them Define prospecting. - answerThe systematic acquisition and recording of data that forms the basis for establishing, maintaining, and expanding the long-term gift relationship, with the ultimate goal of converting donors into major gift donors What are the 7 points of constituency development? - answer1. Identify fundable projects 2. Match prospects to projects 3. Conduct thorough, realistic research (based on the org's needs and resources) 4. Conduct cumulative , ongoing research (keep it current) 5. Conduct organized research (tracking solicitation and cultivation efforts) 6. Conduct research ethically and confidentially 7. Conduct research with the involvement of prospects What is cultivation? What is stewardship? - answerCultivation: a series of activities to maintain and deepen relationships and engagement with donors, prospective donors, and volunteers Stewardship: - The process of accepting and managing resources that have been entrusted to the org through philanthropy. - It is an ongoing process of saying thank you, expressing appreciation, giving attention, providing info, and welcoming feedback (all in the way a donor would like - An organizational plan for how gifts will be used in accordance with donor wishes and how that use will be reported back to the donor List the steps in creating a cultivation plan. - answer1. Identify constituent groups 2. Undertake prospect research 3. Determine LAI 4. Determine the best relationship to make the connection 5. Outline a moves management plan What does segmenting and rating prospects mean? Provide examples. - answerSegmenting: segment prospects according to the likelihood they give to different campaigns Example: first-time donors are likely to give to the annual giving campaign Rating: the prospect's level of interest in the org and giving capacity Example: materials found on a prospect puts him in the giving capacity of $300,000 What is the critical balance? - answerDevelopment professionals must find ways to balance the needs of the community with the interests and needs of donors and the needs of the org List prospect donor research 101 on page 74 of AEF. - answerDetermine LAI - major donors: establish close relationships - annual donors: see who may be ready to move up the donor pyramid - board: all board members are expected to contribute