CFRE Exam Flash Cards (use this set) questions
and answers 2024\2025
Accountability
- correct answer The responsibility of the donee organization to keep a donor informed about the use
that is made of the donor's gift as well as the cost of raising it.
Acknowledgment
- correct answer Written expression of gratitude for gift or service.
Acknowledgment letter
- correct answer A letter sent by a donee, or on behalf of a donee, to the donor, expressing appreciation
for a gift and identifying the use that will be make of the gift. An acknowledgment letter may be a form
letter, but it is usually personalized.
Acquisition mailing (or prospect mailing)
- correct answer A mailing to prospects to acquire new members or donors.
Advance gifts
- correct answer Gifts given or pledged before a public announcement of a campaign. They are solicited
before a campaign is announced because the success or failure of a campaign may depend on the size of
the advance gifts.
Advisory board
- correct answer A group of influential and prominent individuals whose association with a development
program is calculated to lend luster and implied endorsement of the program's goals and objectives.
Analysis
- correct answer That section of a study that deals with the factors essential to success in a fundraising
program; principally the case for support, leadership potential, and fields of support.
,Annual giving
- correct answer Annually repeating gift programs; seeking funds on annual or recurring basis from the
same constituency; income is generally used for operating budget support.
Annual report
- correct answer A yearly report of financial and organizational conditions prepared by the management
of an organization.
Anonymous gift
- correct answer A gift whose announcement, by specific wish of the donor, can include only the
amount; the name of the donor is withheld.
Appreciated real property and securities gift
- correct answer Gifts of real estate or securities, which when held long term are deductible for federal
income tax purposes at the full fair market value with no capital gain on the appreciation. However, the
appreciation is a tax preference item, and proper counsel should be obtained to evaluate whether this
would have alternative minimum tax consequences.
Associates
- correct answer A term used variously to describe a group of individuals who may be supporting an
institution through contributions at a prescribed level, serving in a special advisory capacity, or serving
as a sponsoring body for special institutional events.
Audit
- correct answer An internal evaluation of development procedures as practiced by a nonprofit
institution or agency; normally conducted by professional fundraising counsel.
Bargain sale
- correct answer The sale of property at less than its fair market value. Frequently, a person will sell
property to a 501(c)(3) organization or institution at a "bargain" price (for example, the individual's cost
as opposed to its market value). The transaction is partly a gift and partly a sale.
Benefactor
- correct answer One who makes a major gift to an institution or agency; also, an arbitrary classification
of contributors whose gifts are above a certain level, which is calculated to single them out as a group
and to stimulate similar giving by others.
, Benefit event
- correct answer A form of fundraising that involves the organization and staging of a special event for
charitable purposes; all proceeds above expenses are designated as a contribution to the charitable
institution concerned.
Benevolence
- correct answer A disposition to do good; an act of kindness; a generous gift.
Bequest
- correct answer A transfer, by will, of personal property such as cash, securities, or other tangible
property.
Big gifts
- correct answer A general term used to signify gifts in upper ranges, the precise limits varying from
institution to institution. Their importance is emphasized in all fundraising campaigns.
Board of directors
- correct answer Individuals selected (for example, by other directors or members) in accordance with
law (usually reflected in bylaws) to establish policy and oversee the management of an organization or
institution.
Book value
- correct answer The amount of an asset stated in a company's records, not necessarily the amount it
could bring on the open market.
Bricks and mortar
- correct answer Common manner of alluding to the physical plant needs of an institution and to the
campaigns designed to secure the necessary funds. A "bricks and mortar campaign" is a campaign to
raise building funds.
Budget
- correct answer A detailed breakdown of estimated income and expenses for a development program,
prepared in advance. Budgets show various cost categories, including personnel, printed materials,
purchase and rental of equipment, office expense, headquarters, mailing charges, costs of events, and
so on.
and answers 2024\2025
Accountability
- correct answer The responsibility of the donee organization to keep a donor informed about the use
that is made of the donor's gift as well as the cost of raising it.
Acknowledgment
- correct answer Written expression of gratitude for gift or service.
Acknowledgment letter
- correct answer A letter sent by a donee, or on behalf of a donee, to the donor, expressing appreciation
for a gift and identifying the use that will be make of the gift. An acknowledgment letter may be a form
letter, but it is usually personalized.
Acquisition mailing (or prospect mailing)
- correct answer A mailing to prospects to acquire new members or donors.
Advance gifts
- correct answer Gifts given or pledged before a public announcement of a campaign. They are solicited
before a campaign is announced because the success or failure of a campaign may depend on the size of
the advance gifts.
Advisory board
- correct answer A group of influential and prominent individuals whose association with a development
program is calculated to lend luster and implied endorsement of the program's goals and objectives.
Analysis
- correct answer That section of a study that deals with the factors essential to success in a fundraising
program; principally the case for support, leadership potential, and fields of support.
,Annual giving
- correct answer Annually repeating gift programs; seeking funds on annual or recurring basis from the
same constituency; income is generally used for operating budget support.
Annual report
- correct answer A yearly report of financial and organizational conditions prepared by the management
of an organization.
Anonymous gift
- correct answer A gift whose announcement, by specific wish of the donor, can include only the
amount; the name of the donor is withheld.
Appreciated real property and securities gift
- correct answer Gifts of real estate or securities, which when held long term are deductible for federal
income tax purposes at the full fair market value with no capital gain on the appreciation. However, the
appreciation is a tax preference item, and proper counsel should be obtained to evaluate whether this
would have alternative minimum tax consequences.
Associates
- correct answer A term used variously to describe a group of individuals who may be supporting an
institution through contributions at a prescribed level, serving in a special advisory capacity, or serving
as a sponsoring body for special institutional events.
Audit
- correct answer An internal evaluation of development procedures as practiced by a nonprofit
institution or agency; normally conducted by professional fundraising counsel.
Bargain sale
- correct answer The sale of property at less than its fair market value. Frequently, a person will sell
property to a 501(c)(3) organization or institution at a "bargain" price (for example, the individual's cost
as opposed to its market value). The transaction is partly a gift and partly a sale.
Benefactor
- correct answer One who makes a major gift to an institution or agency; also, an arbitrary classification
of contributors whose gifts are above a certain level, which is calculated to single them out as a group
and to stimulate similar giving by others.
, Benefit event
- correct answer A form of fundraising that involves the organization and staging of a special event for
charitable purposes; all proceeds above expenses are designated as a contribution to the charitable
institution concerned.
Benevolence
- correct answer A disposition to do good; an act of kindness; a generous gift.
Bequest
- correct answer A transfer, by will, of personal property such as cash, securities, or other tangible
property.
Big gifts
- correct answer A general term used to signify gifts in upper ranges, the precise limits varying from
institution to institution. Their importance is emphasized in all fundraising campaigns.
Board of directors
- correct answer Individuals selected (for example, by other directors or members) in accordance with
law (usually reflected in bylaws) to establish policy and oversee the management of an organization or
institution.
Book value
- correct answer The amount of an asset stated in a company's records, not necessarily the amount it
could bring on the open market.
Bricks and mortar
- correct answer Common manner of alluding to the physical plant needs of an institution and to the
campaigns designed to secure the necessary funds. A "bricks and mortar campaign" is a campaign to
raise building funds.
Budget
- correct answer A detailed breakdown of estimated income and expenses for a development program,
prepared in advance. Budgets show various cost categories, including personnel, printed materials,
purchase and rental of equipment, office expense, headquarters, mailing charges, costs of events, and
so on.
