CFRE Exam Terms with Accurate
Solutions
accountability - ANS-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.
acknowledgement - ANS-Written expression of gratitude for gift or service.
acknowledgement letter - ANS-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 (prospect mailing) - ANS-A mailing to prospects to acquire new
members or donors.
Advance Gifts - ANS-Gifts given or pledged in advance of a public announcement of a
campaign. Advance gifts 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 - ANS-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 - ANS-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 - ANS-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 - ANS-A yearly report of financial and organizational conditions prepared
by the management of an organization.
Anonymous Gift - ANS-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 - ANS-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 - ANS-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 insti- tutional events.
Audit - ANS-An internal evaluation of development procedures as practiced by a
nonprofit institution or agency; normally conducted by professional fundraising counsel.
Bargain Sale - ANS-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 - ANS-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 - ANS-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 - ANS-A disposition to do good; an act of kindness; a generous gift.
Bequest - ANS-A transfer, by will, of personal property such as cash, securities, or other
tangible property.
Big Gifts - ANS-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 - ANS-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 - ANS-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 - ANS-Common manner of alluding to the physical plant needs of an
institution and to the campaigns designed to secure the neces- sary funds. A "bricks
and mortar campaign" is a campaign to raise building funds.
Budget - ANS-A detailed breakdown of estimated income and expenses for a
development program, prepared in advance. Budgets show various cost categories,
Solutions
accountability - ANS-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.
acknowledgement - ANS-Written expression of gratitude for gift or service.
acknowledgement letter - ANS-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 (prospect mailing) - ANS-A mailing to prospects to acquire new
members or donors.
Advance Gifts - ANS-Gifts given or pledged in advance of a public announcement of a
campaign. Advance gifts 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 - ANS-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 - ANS-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 - ANS-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 - ANS-A yearly report of financial and organizational conditions prepared
by the management of an organization.
Anonymous Gift - ANS-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 - ANS-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 - ANS-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 insti- tutional events.
Audit - ANS-An internal evaluation of development procedures as practiced by a
nonprofit institution or agency; normally conducted by professional fundraising counsel.
Bargain Sale - ANS-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 - ANS-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 - ANS-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 - ANS-A disposition to do good; an act of kindness; a generous gift.
Bequest - ANS-A transfer, by will, of personal property such as cash, securities, or other
tangible property.
Big Gifts - ANS-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 - ANS-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 - ANS-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 - ANS-Common manner of alluding to the physical plant needs of an
institution and to the campaigns designed to secure the neces- sary funds. A "bricks
and mortar campaign" is a campaign to raise building funds.
Budget - ANS-A detailed breakdown of estimated income and expenses for a
development program, prepared in advance. Budgets show various cost categories,
