CFRE TERMS questions and answers graded A+ 2023/2024

CFRE TERMSAbility - correct answer A donors ability to give is an assessment of their financial capacity, stage of life and the liquidity of their assets. Ability is often confused with perceived income which may not always be an accurate assessment of ability to give. Cultivation - correct answer Cultivation is a series of activities to maintain and deepen relationships with donors, perspective donors and volunteers. Data Mining - correct answer Data mining is the process of collecting, researching, analyzing and segmenting information about donors, prospective donors and volunteers. Frequency - correct answer Frequency refers to how often a donor gives, and to which appeals Giving history - correct answer The sum total of a donors giving record, including the frequency, lifetime total, renewal rate, appeal responses, average gift, highest gift, most recent gift. Interest - correct answer A donor or prospective donors interest correlates with their likelihood of making a gift. Interest is the correlation of excitement, engagement, concern and motivation an individual has for the organisation. Data Privacy - correct answer Data privacy is the organization's responsibility to maintain secure digital records, and to inform the donor when that data is being shared and with who. Lifetime donor value - correct answer (or Lifetime projected value) an estimate total of lifetime and current giving. It is typically determined by multiplying Lifetime x amount x frequency = total Demographics - correct answer Demographics refers to the statistical data of a population- including age, income, education, political affiliation, marital and family status etc. Donor Profile - correct answer A description of basic information about a prospective or existing individual donor through research. A concise record of a donors ability, linkage, and interest in an organisation. It contains VERIFIED contact info, giving history, and wealth indicators Donor Qualifying - correct answer The ongoing process of assembling linkage, interest, and ability of donors to match appeal, program and amount. Donor rating - correct answer Rating is the process by which staff and board asses donors for their capacity to make a gift of significance (MG, Planned gift, Lead gift etc.) engagement - correct answer Strictly defined as "to attract and hold fast" and "to occupy the attention or efforts of a person". For a NFP or charity, this means the ongoing effort to learn, communicate and offer shared experience to our donors. Linkage - correct answer Refers to the connections a donor or prospect has to our organization and/ or its mission. This could be in the form of experience, connection, values, or personal history. market research - correct answer The activity of gathering information about consumers' needs and preferences. the gathering of data to interpret donor preferences, attitudes, or ability. Prospect - correct answer A donor evaluated based on donor research and is found to have affinity, ability and some connection to the organization Renewal rate - correct answer An organizations renewal rate is the percentage of donors who make a subsequent gift. This can be evaluated based on appeal or annual. Renewal rates are often a reflection of how well an organization thanks its donors, and keeps them informed about how gifts are used. ( also known as attrition rates) Segmentation - correct answer Segmentation is the process of grouping donors and prospective donors into like categories in order to more effectively target appeals and allocate resources. Donors can be segmented by giving levels, history, response format and other categories.