CFRE CERTIFICATION EVALUATION FULL
QUESTIONS AND SOLUTIONS VERIFIED
PREPARATION MATERIAL
●● Explain philanthropy in US versus other countries.
Answer: In the US, philanthropy compare to business and government
plays a larger relative role in the economy compared to other countries
(no tax deduction in Europe).
●● What are some challenges in Philanthropy?
Answer: 1) rapid growth in organizations and philanthropic giving
2) Accountability - narrow / broad
3) Blurring the boundaries (for profits with nonprofit arms)
4) Entrepreneurial models (family nonprofits
●● Accountability - three general trends
Answer: 1) Funders and donors have increased their gift restrictions and
continued their call for accountability
2) Program evaluation, focus on results, and impact studies to measure
return on gifts have become common
3) Fundraisers need to ensure that their organizations are ready to
respond
,●● According to the Independent Sector, narrow accountability refers to:
Answer: 1) the formal responsibilities of individuals and organizations
to report their actions to higher authorities (IRS)
2) the specific reporting mechanisms they are instructed to use (990)
3) the formal standard to which they are held
●● To ensure narrow accountability:
Answer: NPOs must implement formal reporting structure to comply
with applicable laws and regulations
●● Broad Accountability - encompasses narrow accountability and
builds on it by expanding it in two important ways:
Answer: 1) Broadens the set of higher authorities to whom individuals
and organizations are potentially responsible (donors & recipients)
2) Broadens the criteria expectations and standards to which individuals
and organizations may be potentially held (not ethical to visit donors in a
hospital)
●● Broad Accountability is:
Answer: 1) Serving the public good
2) Preserving the public trust
3) Often implicit and subjective
●● Broad Accountability & the public trust
,Answer: is being able to account for the organization's implied promised
to is constituents by pursuing its stated mission in good faith with
defensible and transparent management and governance practices.
●● Blurring the boundaries
Answer: 1) NPOs increased both fee income and government funding at
higher rates than philanthropy (donations)
2) NPOs have become more interdependent rather than dependent
3) For proftis have entered fields like health care, education and social
service that were once the restricted to the NP sector
●● Entrepreneurial Models
Answer: 1) NPOs have adopted entrepreneurial models sometimes
forming for profit subsidiaries to earn income that is used to support the
NPO
2) NPOs earn income in different ways & compensate staff on a
commission basis based on marketing and business income
●● Fundraisers challenge:
Answer: Commission is ethical for market based income but is unethical
based on philanthropic funds raised. (bonus is ok on # donors or on
cumulative revenue but not on an individual basis).
●● Donor behaviors
, Answer: 1) are different from each other and from the previous
generation
2) are interested in pursuing very distinctive projects
3) accumulated wealth quickly in the 1990s are interested in pursuing
philanthropy at a younger age
4) have developed a venture philanthropy approach (projects)
5) with a good project v. NP was a good cause (merging the two are
challenging)
●● Engaging constituents
Answer: 1) Generation (1910-1930) was the 'long civic generation' since
they volunteered more than any generation before or since
2) Studies show that young people are coming back to volunteering
stimulated by programs such as AmeriCorps, Vista and Learn & Serve
●● Younger generations
Answer: 1)Volunteer on an ad hoc basis rather than making a long term
commitment
2) Prefer to provide direct service rather than become involved at the
policy level
3) Want to volunteer with friend and voworkers and view volunteering
as a social activity
4) Challenge NPs because they lack the structure to engage volunteers
on their terms
QUESTIONS AND SOLUTIONS VERIFIED
PREPARATION MATERIAL
●● Explain philanthropy in US versus other countries.
Answer: In the US, philanthropy compare to business and government
plays a larger relative role in the economy compared to other countries
(no tax deduction in Europe).
●● What are some challenges in Philanthropy?
Answer: 1) rapid growth in organizations and philanthropic giving
2) Accountability - narrow / broad
3) Blurring the boundaries (for profits with nonprofit arms)
4) Entrepreneurial models (family nonprofits
●● Accountability - three general trends
Answer: 1) Funders and donors have increased their gift restrictions and
continued their call for accountability
2) Program evaluation, focus on results, and impact studies to measure
return on gifts have become common
3) Fundraisers need to ensure that their organizations are ready to
respond
,●● According to the Independent Sector, narrow accountability refers to:
Answer: 1) the formal responsibilities of individuals and organizations
to report their actions to higher authorities (IRS)
2) the specific reporting mechanisms they are instructed to use (990)
3) the formal standard to which they are held
●● To ensure narrow accountability:
Answer: NPOs must implement formal reporting structure to comply
with applicable laws and regulations
●● Broad Accountability - encompasses narrow accountability and
builds on it by expanding it in two important ways:
Answer: 1) Broadens the set of higher authorities to whom individuals
and organizations are potentially responsible (donors & recipients)
2) Broadens the criteria expectations and standards to which individuals
and organizations may be potentially held (not ethical to visit donors in a
hospital)
●● Broad Accountability is:
Answer: 1) Serving the public good
2) Preserving the public trust
3) Often implicit and subjective
●● Broad Accountability & the public trust
,Answer: is being able to account for the organization's implied promised
to is constituents by pursuing its stated mission in good faith with
defensible and transparent management and governance practices.
●● Blurring the boundaries
Answer: 1) NPOs increased both fee income and government funding at
higher rates than philanthropy (donations)
2) NPOs have become more interdependent rather than dependent
3) For proftis have entered fields like health care, education and social
service that were once the restricted to the NP sector
●● Entrepreneurial Models
Answer: 1) NPOs have adopted entrepreneurial models sometimes
forming for profit subsidiaries to earn income that is used to support the
NPO
2) NPOs earn income in different ways & compensate staff on a
commission basis based on marketing and business income
●● Fundraisers challenge:
Answer: Commission is ethical for market based income but is unethical
based on philanthropic funds raised. (bonus is ok on # donors or on
cumulative revenue but not on an individual basis).
●● Donor behaviors
, Answer: 1) are different from each other and from the previous
generation
2) are interested in pursuing very distinctive projects
3) accumulated wealth quickly in the 1990s are interested in pursuing
philanthropy at a younger age
4) have developed a venture philanthropy approach (projects)
5) with a good project v. NP was a good cause (merging the two are
challenging)
●● Engaging constituents
Answer: 1) Generation (1910-1930) was the 'long civic generation' since
they volunteered more than any generation before or since
2) Studies show that young people are coming back to volunteering
stimulated by programs such as AmeriCorps, Vista and Learn & Serve
●● Younger generations
Answer: 1)Volunteer on an ad hoc basis rather than making a long term
commitment
2) Prefer to provide direct service rather than become involved at the
policy level
3) Want to volunteer with friend and voworkers and view volunteering
as a social activity
4) Challenge NPs because they lack the structure to engage volunteers
on their terms
