CLT LESGEVER EXAM SCRIPT QUESTIONS
AND ANSWERS COMPLETE PRACTICE
RESOURCE VERIFIED
●● The CPA planning process, as outlined in the slides, drawing on
PPC's Guide to Charitable Giving Strategies, has which of these steps?
A. I. Set, prioritize, and quantify goals; gather data; develop strategy;
communicate strategy; implement; monitor.
B. II. Assess philanthropic impact of charitable strategies via specific
charitable organization.
C. Both
D. Neither
Answer: A. I only - The assessment of charitable impact has not been
traditionally seen as a professional responsibility by CPAs, or, for that
matter, by other financial professionals. -1
●● How does the Jill Donor case outcome relate to the Fithian Legacy
process?
A. Her income sources are not sufficiently diversified.
B. She has not achieved her financial independence number.
C. Some of her advisors are not providing good advice.
D. She has considered how much she needs for herself and her heirs and
is leaving a social legacy.
,Answer: D. In "Planning for Abundance," the goal is to help clients plan
for what to do with the excess beyond what they and their heirs need. -1
●● With "The Case of Jill Donor" in mind, a proposed major gift can fail
for which of these reasons?
A. I. The donor's priorities are not adequately considered.
B. II. The charity's capacities and priorities are not adequately
considered.
C. Both
D. Neither
Answer: C. Both are true. The donor's wishes should be respected, as
well as the charity's capacities. If the charity agrees to do what the donor
wants--if it takes the money but fails to perform--then the gift has failed.
Likewise, if the charity does what the donor wants, but goes outside its
mission or loses money on the project, then the gift has failed. -1
●● In the traditional approach (as conveyed by Board Source's "Steps to
Solicitation," outlined in the slides) major gift fundraisers are taught to
begin a serious gift conversation by doing which of these?
A. Asking open-ended questions about donor goals
B. Gaining insight into the donor's asset structure and income
C. Asking questions about the impact of giving on heirs
D. Presenting a case statement as to why the charity needs the money,
and how that money will be used in a manner consistent with the
organization's mission and capacities.
,Answer: D. This approach of starting from the nonprofit's mission,
needs, and capacities makes perfect sense for a fundraiser within the
context of the fundraiser's professional role, that of raising money to
meet institutional priorities. However, the process may also collide with
advisors who have greater access to the client's income statement,
balance sheet, and overall priorities. -1
●● In "The Case of Jill Donor," Jill, Bill, and their daughter, Sondra,
might all agree that a large gift to fund a classics building would make
perfect sense. Bill and Jill studied classics. Both believe classics can
help change the world. In addition, Sondra would be happier with
classics than with a business building. Why, then, doesn't State
University simply take the money?
A. I. The business building is a top priority with the President and the
Trustees.
B. II. There are very few classics students, and a new classics building
would be of little value and expensive to maintain.
C. Both
D. Neither
Answer: C. Both statements are true, and both express valid reasons.
The school has its own legitimate priorities. The fundraiser works for the
school. Her job is to bring in money to meet the school's needs.
Furthermore, it turns out that in this case the donor's desires simply
cannot be adequately met by the school. The dream the donor and her
family have cannot be realistically implemented by the school. Taking
the money for a new classics building would likely lead to an unhappy
outcome. Gifts like this, to achieve the best possible outcome, require
, give-and-take between the donor, the family, the advisory team, and the
nonprofit. The fundraiser may play a key role as an ambassador back
and forth among the parties as the gift comes together. -1
●● Why does the planned giving solicitation process have more steps
than the major gift solicitation process?
A. It happens later in life.
B. The tools involved are often more complex.
C. Planned giving donors expect more recognition.
D. It has greater tax benefits.
Answer: B. As a way to go deeper, consider which processes as taught in
this assignment begin with open-ended questions about the client or
donor and which begin with statements, written materials, or a pitch. A
general point made in CAP is that as the size of the potential gift goes
up, and as charitable tools are introduced into the process, it becomes
more important to open with questions about the donor's interest,
background facts, and priorities. Generally, advisors, including CPAs,
begin with this kind of "discovery/agreement" or "goal-setting and fact-
finding." Even when a fundraiser represents the charity, she opens with
questions to seek a fit between the donor's charitable goals and the
charitable opportunities and tools she can offer. But the traditional major
gift process opens the donor interview with a pitch. Very little is
generally done face-to-face with the donor to establish facts and set
goals. Likewise, the planned gift process often goes from identification,
to qualification, to cultivation, to illustration of a tool, then to the ask,
then to implementation, and, finally, to stewardship. The illustration
AND ANSWERS COMPLETE PRACTICE
RESOURCE VERIFIED
●● The CPA planning process, as outlined in the slides, drawing on
PPC's Guide to Charitable Giving Strategies, has which of these steps?
A. I. Set, prioritize, and quantify goals; gather data; develop strategy;
communicate strategy; implement; monitor.
B. II. Assess philanthropic impact of charitable strategies via specific
charitable organization.
C. Both
D. Neither
Answer: A. I only - The assessment of charitable impact has not been
traditionally seen as a professional responsibility by CPAs, or, for that
matter, by other financial professionals. -1
●● How does the Jill Donor case outcome relate to the Fithian Legacy
process?
A. Her income sources are not sufficiently diversified.
B. She has not achieved her financial independence number.
C. Some of her advisors are not providing good advice.
D. She has considered how much she needs for herself and her heirs and
is leaving a social legacy.
,Answer: D. In "Planning for Abundance," the goal is to help clients plan
for what to do with the excess beyond what they and their heirs need. -1
●● With "The Case of Jill Donor" in mind, a proposed major gift can fail
for which of these reasons?
A. I. The donor's priorities are not adequately considered.
B. II. The charity's capacities and priorities are not adequately
considered.
C. Both
D. Neither
Answer: C. Both are true. The donor's wishes should be respected, as
well as the charity's capacities. If the charity agrees to do what the donor
wants--if it takes the money but fails to perform--then the gift has failed.
Likewise, if the charity does what the donor wants, but goes outside its
mission or loses money on the project, then the gift has failed. -1
●● In the traditional approach (as conveyed by Board Source's "Steps to
Solicitation," outlined in the slides) major gift fundraisers are taught to
begin a serious gift conversation by doing which of these?
A. Asking open-ended questions about donor goals
B. Gaining insight into the donor's asset structure and income
C. Asking questions about the impact of giving on heirs
D. Presenting a case statement as to why the charity needs the money,
and how that money will be used in a manner consistent with the
organization's mission and capacities.
,Answer: D. This approach of starting from the nonprofit's mission,
needs, and capacities makes perfect sense for a fundraiser within the
context of the fundraiser's professional role, that of raising money to
meet institutional priorities. However, the process may also collide with
advisors who have greater access to the client's income statement,
balance sheet, and overall priorities. -1
●● In "The Case of Jill Donor," Jill, Bill, and their daughter, Sondra,
might all agree that a large gift to fund a classics building would make
perfect sense. Bill and Jill studied classics. Both believe classics can
help change the world. In addition, Sondra would be happier with
classics than with a business building. Why, then, doesn't State
University simply take the money?
A. I. The business building is a top priority with the President and the
Trustees.
B. II. There are very few classics students, and a new classics building
would be of little value and expensive to maintain.
C. Both
D. Neither
Answer: C. Both statements are true, and both express valid reasons.
The school has its own legitimate priorities. The fundraiser works for the
school. Her job is to bring in money to meet the school's needs.
Furthermore, it turns out that in this case the donor's desires simply
cannot be adequately met by the school. The dream the donor and her
family have cannot be realistically implemented by the school. Taking
the money for a new classics building would likely lead to an unhappy
outcome. Gifts like this, to achieve the best possible outcome, require
, give-and-take between the donor, the family, the advisory team, and the
nonprofit. The fundraiser may play a key role as an ambassador back
and forth among the parties as the gift comes together. -1
●● Why does the planned giving solicitation process have more steps
than the major gift solicitation process?
A. It happens later in life.
B. The tools involved are often more complex.
C. Planned giving donors expect more recognition.
D. It has greater tax benefits.
Answer: B. As a way to go deeper, consider which processes as taught in
this assignment begin with open-ended questions about the client or
donor and which begin with statements, written materials, or a pitch. A
general point made in CAP is that as the size of the potential gift goes
up, and as charitable tools are introduced into the process, it becomes
more important to open with questions about the donor's interest,
background facts, and priorities. Generally, advisors, including CPAs,
begin with this kind of "discovery/agreement" or "goal-setting and fact-
finding." Even when a fundraiser represents the charity, she opens with
questions to seek a fit between the donor's charitable goals and the
charitable opportunities and tools she can offer. But the traditional major
gift process opens the donor interview with a pitch. Very little is
generally done face-to-face with the donor to establish facts and set
goals. Likewise, the planned gift process often goes from identification,
to qualification, to cultivation, to illustration of a tool, then to the ask,
then to implementation, and, finally, to stewardship. The illustration
