CFRE Exam: Leadership and Management
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Before you start any consulting relationship - what do you have to have? - CORRECT
ANSWER - Clear understanding of need
timeline, budget, staff roles and desired outcomes
agreement to provide information and access
process to ensure consultant understands critical issues
organizational commitment to process that it will take time
How do you build a realistic budget? - CORRECT ANSWER - -Match it to the
development plan covering the same period
-incorporate appropriate monitoring and benchmark points
-Choose right method - prior year budget or zero based budget
-No matter which is chosen, the budget should demonstrate a direct relationship between the
dollars spent and the monetary results obtained.
How do you decide what to include in a development plan? - CORRECT ANSWER - You
include a mix of approaches depending on the organization's need.
You look at your operating income, physical plant, endowment income, etc.
You look at your history of donor support and opportunities to expand.
Look at how fundraising will help advance the organization mission.
For example: Heavy operating organization should focus on annual and planned giving. Large
capital needs org (like hospital) should focus on capital fundraising.
How do you define staff structure to meet the organization's goals? - CORRECT
ANSWER - Assess the current status of your staff against the development plan
Examine resources - those present and those needed
Make decisions about building organizational capacity
, How do you make sure your relationship with the consultant is succesful - CORRECT
ANSWER - clearly define the scope of work
have a single point of contact for the organization
clarify roles and responsibilities
monitor the work
anticipate challenges and plan for avoiding them.
How long does a strategic plan last? - CORRECT ANSWER - 3-5 years
How should effective fundraising evolve over time? - CORRECT ANSWER - First
establish annual fundraising to meet operating needs.
Then evolve to meet other capital needs as a campaign or organized restricted gift opportunities.
Then planned gift is added.
How should fundraising performance be evaluated? - CORRECT ANSWER - It should be
evaluated based on what's set in the fundraising plan. Plans should be determined through mutual
agreement between fundraiser and supervisor. Things like number of visits, touch points, and
other types of engagements should be measured along with dollars raised. Looking at
benchmarks yearly at the beginning of the year, then evaluating success and growth in relation to
those benchmarks will be key for an organization's planning and evaluation.
Strategic plan vs. long range plan - CORRECT ANSWER - Long range planning is what is
used to determine the vision of an organization where as strategic planning is focused on a much
shorter time-scale.
What are important elements in evaluating staff performance? - CORRECT ANSWER -
Adopt a standard, organization wide evaluating system
performance measured against previously defined objectives
fairness
contribution to achievement
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Before you start any consulting relationship - what do you have to have? - CORRECT
ANSWER - Clear understanding of need
timeline, budget, staff roles and desired outcomes
agreement to provide information and access
process to ensure consultant understands critical issues
organizational commitment to process that it will take time
How do you build a realistic budget? - CORRECT ANSWER - -Match it to the
development plan covering the same period
-incorporate appropriate monitoring and benchmark points
-Choose right method - prior year budget or zero based budget
-No matter which is chosen, the budget should demonstrate a direct relationship between the
dollars spent and the monetary results obtained.
How do you decide what to include in a development plan? - CORRECT ANSWER - You
include a mix of approaches depending on the organization's need.
You look at your operating income, physical plant, endowment income, etc.
You look at your history of donor support and opportunities to expand.
Look at how fundraising will help advance the organization mission.
For example: Heavy operating organization should focus on annual and planned giving. Large
capital needs org (like hospital) should focus on capital fundraising.
How do you define staff structure to meet the organization's goals? - CORRECT
ANSWER - Assess the current status of your staff against the development plan
Examine resources - those present and those needed
Make decisions about building organizational capacity
, How do you make sure your relationship with the consultant is succesful - CORRECT
ANSWER - clearly define the scope of work
have a single point of contact for the organization
clarify roles and responsibilities
monitor the work
anticipate challenges and plan for avoiding them.
How long does a strategic plan last? - CORRECT ANSWER - 3-5 years
How should effective fundraising evolve over time? - CORRECT ANSWER - First
establish annual fundraising to meet operating needs.
Then evolve to meet other capital needs as a campaign or organized restricted gift opportunities.
Then planned gift is added.
How should fundraising performance be evaluated? - CORRECT ANSWER - It should be
evaluated based on what's set in the fundraising plan. Plans should be determined through mutual
agreement between fundraiser and supervisor. Things like number of visits, touch points, and
other types of engagements should be measured along with dollars raised. Looking at
benchmarks yearly at the beginning of the year, then evaluating success and growth in relation to
those benchmarks will be key for an organization's planning and evaluation.
Strategic plan vs. long range plan - CORRECT ANSWER - Long range planning is what is
used to determine the vision of an organization where as strategic planning is focused on a much
shorter time-scale.
What are important elements in evaluating staff performance? - CORRECT ANSWER -
Adopt a standard, organization wide evaluating system
performance measured against previously defined objectives
fairness
contribution to achievement
