CFRE terms | Trusted 2025 Practice Test Questions:
Verified Accuracy & Up-to-Date Answers
Advance gift - correct answer a donation, often from a trustee or director
of an organization, that demonstrates a commitment to a campaign and
provides momentum at the outset before external solicitations are
undertaken.
Asset - correct answer something that has value or an advantage; an item
of value such as real estate, cash a security or patent.
Brand for a nonprofit - correct answer an impression of a product in the
minds of current or prospective consumers that is typically created by its
manufacturer to convince users that this product is superior to other brands
of the same product, although it may be technically identical to other
brands.
Cause related marketing - correct answer marketing in which a for profit
organization by using the name of a not for profit organization promotes its
product and in return provides financial support to the organization
according to a predetermined formula based on sales and purchases.
Challenge gift - correct answer a gift donated by a person made on
condition that other gifts or grant will be obtained using some prescribed
formula, usually within a specified period of time, with the objective of
encouraging others to give.
Matching gift - correct answer a gift contributed on the condition that it be
matched, often within a certain period of time, in accordance with a
, specified formula. A gift by a corporation matching a gift contributed by one
or more of its employees.
Types of foundation - correct answer independent foundations where
assets are established via gifts from individual (82% of all
foundations).corporate foundations: company or business serves as a
grantmaking vehicle for the company. Community foundations this is where
dafs live, usually have several fund pools, act as funders of seed money to
small nonprofits. Operating foundations - like a hospital or library or college
foundations - give money only to the entity.
Types of corporate giving - correct answer corporate productivity: helps
market products, improve employee moral, can use cause related
marketing. Ethical or altruistic model: good corporate citizens and they
want to demonstrate corporate social responsibility - like to address
community needs. Political model: giving serves as a liaison to community
allies. Stakeholder model: projects held stakeholders like consumers of the
products, employees, etc.
Cultivation - correct answer cultivation - developing interest through
exposure to the organization's programs, activities, and people. Letting
donors know that the organization is dedicated to its mission and how their
gift advances that mission. Cultivation moves prospects to active
supporters; cultivation improves relationships; cultivation is how an
organization moves donors to a higher level of giving; cultivation
determines lai; cultivation brings about a transaction; cultivation seeks to
discover what is important; questions are how will you make contact? Who
will do the cultivating? And how will you inform prospects about your
projects and build a propensity to give?
Endowment vs board restricted fund - correct answer "endowment: money
from bequests or outright gifts to the nonprofit organization that is invested
in perpetuity to produce amounts to be distributed for pre-determined
Verified Accuracy & Up-to-Date Answers
Advance gift - correct answer a donation, often from a trustee or director
of an organization, that demonstrates a commitment to a campaign and
provides momentum at the outset before external solicitations are
undertaken.
Asset - correct answer something that has value or an advantage; an item
of value such as real estate, cash a security or patent.
Brand for a nonprofit - correct answer an impression of a product in the
minds of current or prospective consumers that is typically created by its
manufacturer to convince users that this product is superior to other brands
of the same product, although it may be technically identical to other
brands.
Cause related marketing - correct answer marketing in which a for profit
organization by using the name of a not for profit organization promotes its
product and in return provides financial support to the organization
according to a predetermined formula based on sales and purchases.
Challenge gift - correct answer a gift donated by a person made on
condition that other gifts or grant will be obtained using some prescribed
formula, usually within a specified period of time, with the objective of
encouraging others to give.
Matching gift - correct answer a gift contributed on the condition that it be
matched, often within a certain period of time, in accordance with a
, specified formula. A gift by a corporation matching a gift contributed by one
or more of its employees.
Types of foundation - correct answer independent foundations where
assets are established via gifts from individual (82% of all
foundations).corporate foundations: company or business serves as a
grantmaking vehicle for the company. Community foundations this is where
dafs live, usually have several fund pools, act as funders of seed money to
small nonprofits. Operating foundations - like a hospital or library or college
foundations - give money only to the entity.
Types of corporate giving - correct answer corporate productivity: helps
market products, improve employee moral, can use cause related
marketing. Ethical or altruistic model: good corporate citizens and they
want to demonstrate corporate social responsibility - like to address
community needs. Political model: giving serves as a liaison to community
allies. Stakeholder model: projects held stakeholders like consumers of the
products, employees, etc.
Cultivation - correct answer cultivation - developing interest through
exposure to the organization's programs, activities, and people. Letting
donors know that the organization is dedicated to its mission and how their
gift advances that mission. Cultivation moves prospects to active
supporters; cultivation improves relationships; cultivation is how an
organization moves donors to a higher level of giving; cultivation
determines lai; cultivation brings about a transaction; cultivation seeks to
discover what is important; questions are how will you make contact? Who
will do the cultivating? And how will you inform prospects about your
projects and build a propensity to give?
Endowment vs board restricted fund - correct answer "endowment: money
from bequests or outright gifts to the nonprofit organization that is invested
in perpetuity to produce amounts to be distributed for pre-determined
