MMB's CFRE Domain 1 Current and
Prospective Donor Research Exam-
Graded A
CFRE Test Content Outline - ANS-1. Domain 1: Current and Prospective Donor
Research (14%-28 items)
2. Domain 2: Securing the Gift (23%-46 items)
3. Domain 3: Relationship Building (26%-52 items)
4. Domain 4: Volunteer Involvement (8%-16 items)
5. Domain 5: Leadership and Management (19%-38 items)
6. Domain 6: Ethics, Accountability, and Professionalism (10%-20 items)
Philanthropy - ANS-voluntary action for the common good... - Robert L. Payton, as
quoted in Greenfield's Fundraising Fundamentals
Number of nonprofits registered with IRS - ANS-US: 1.4 mil; 63% registered as 501c3...
161K in Canada
Donors give for the following reasons - ANS-moral obligation to help... personal
satisfaction of helping others... to remove guilt for not giving... to maintain/improve
social status... peer pressure... compassion/empathy... personal identification... self-
interest... religious influence... need to be needed... substitution for active participation...
support for mission and purpose... personal relationship... appreciation for mission...
evidence of one's success... to express anger, or love, or hope... to end fear... out of the
cause's appeal... to be remembered... to gain recognition... to join group, sense of
belonging ... to preserve the species... to gain immorality... for psychic self-satisfaction...
desire to provide public goods... to fulfill condition for employment... in response to
leadership from peers... to be agent for public good... satisfaction from seeing others
satisfied... tax benefits
Linkage, Ability & Interest (LIA) - ANS-Qualities used to qualify prospective donors for
further research and cultivation often found when developing a list of prospective donors
by identifying individuals, groups and entities, such as foundations, corporations, and
government agencies.
,Source of Financial Support: (4) - ANS-1. Individual (73%)
2. Foundation (15%)
3. Corporations (5%)
4. Bequests (8%)
Source of Financial Support: (4)
1. Individual (73%) - ANS--Primary Source of charitable contributions
-Retirees most generous group of individuals
-Volunteers give more than twice the % of annual income to charity as those who give
but do not volunteer.
Source of Financial Support: (4)
2. Foundation (15%)--- DEFINITION - ANS-a). Nonprofit, nongovernmental org w/ a
principal fund of endowments of its own
b). An org which maintains or aids charitable, educational, religious, or other activities
serving the public good primarily by making grants to other nonprofits.
c). Required to distribute at least 5% of assets to nonprofits annually.
d). Org created and organized as a corp or charitable trust under state laws and which
receives federal, tax exempt status from the IRS.
TYPES OF FOUNDATIONS: (4) - ANS-1. Independent
2. Corporate
3. Community
4. Operating
TYPES OF FOUNDATIONS: (4)
1. Independent - ANS-A fund of endowment, designated by the IRS as a private
foundation, the primary function of which is to make grants. It's assets are typically
derived from gifts of an individual or family. AKA "special or general purpose funds".
TYPES OF FOUNDATIONS: (4)
2. Corporate - ANS-Private foundations set up to make grants which it funds from a
profit making business but most often functions in concert with corporate policies and
interests. Governance and management of the corporations may include company
employees as well as non employees. Corporations may also have giving programs that
are not channeled through the foundation.
TYPES OF FOUNDATIONS: (4)
3. Community - ANS--Usually classified as a public charity.
-Community foundations function like independent foundations.
-Funds are derived from MANY donors rather than a single donor (as seen in
independent)
-Most often ested to serve a speciffic geographic area
, TYPES OF FOUNDATIONS: (4)
4. Operating - ANS-Private foundation that conducts research, promotes social welfare,
and engages in programs determined by its governing body/establishment charter and
rarely makes grants. Must spend 85% of its income on its own activities.
Examples: Getty Trust, Kettering Foundation, Liberty Fund, Amherst Wilder Foundation
TYPES OF FOUNDATION GRANTS: (5) - ANS-1. General Operating Support
2. Program/Project
3. Capital
4. Pilot
5. Challenge/Matching
Source of Financial Support: (4)
3. Corporations (5%) - ANS-Corporate Productivity Model (Most used Model)
a.) Corporate philanthropy is intended to help corp increase profits
b) Corp giving departments must align their contributions with the bottom line.
c) Fundraisers must design requests around projects that can prove corp productivity
and provide contribution officers with arguments & evidence that the projects contribute
to bottom line efficiency
Types of Corporate Giving/ Funding for Projects that... - ANS-(Funding for projects
that...)
1. Help Market Corporate Products
2. Increase Employee Motivation
3. Lower Corporate Costs
4. Improve Corporate Image
Corporate Productivity Model:
(4) Models - ANS-1. Ethical/ Altruistic Model
2. Political Model: (External Version)
3. Political Model: (Internal Version)
4. Stakeholder Model
Corporate Productivity Model: (4 MODELS)
1. Ethical/ Altruistic Model - ANS-a). Corp leaders feel obligated to support societal
needs as their social responsibility
b). Assumption is Corps have discretionary resources
c). Corp giving programs must identify community priorities and alert corporate leaders
of needs.
Prospective Donor Research Exam-
Graded A
CFRE Test Content Outline - ANS-1. Domain 1: Current and Prospective Donor
Research (14%-28 items)
2. Domain 2: Securing the Gift (23%-46 items)
3. Domain 3: Relationship Building (26%-52 items)
4. Domain 4: Volunteer Involvement (8%-16 items)
5. Domain 5: Leadership and Management (19%-38 items)
6. Domain 6: Ethics, Accountability, and Professionalism (10%-20 items)
Philanthropy - ANS-voluntary action for the common good... - Robert L. Payton, as
quoted in Greenfield's Fundraising Fundamentals
Number of nonprofits registered with IRS - ANS-US: 1.4 mil; 63% registered as 501c3...
161K in Canada
Donors give for the following reasons - ANS-moral obligation to help... personal
satisfaction of helping others... to remove guilt for not giving... to maintain/improve
social status... peer pressure... compassion/empathy... personal identification... self-
interest... religious influence... need to be needed... substitution for active participation...
support for mission and purpose... personal relationship... appreciation for mission...
evidence of one's success... to express anger, or love, or hope... to end fear... out of the
cause's appeal... to be remembered... to gain recognition... to join group, sense of
belonging ... to preserve the species... to gain immorality... for psychic self-satisfaction...
desire to provide public goods... to fulfill condition for employment... in response to
leadership from peers... to be agent for public good... satisfaction from seeing others
satisfied... tax benefits
Linkage, Ability & Interest (LIA) - ANS-Qualities used to qualify prospective donors for
further research and cultivation often found when developing a list of prospective donors
by identifying individuals, groups and entities, such as foundations, corporations, and
government agencies.
,Source of Financial Support: (4) - ANS-1. Individual (73%)
2. Foundation (15%)
3. Corporations (5%)
4. Bequests (8%)
Source of Financial Support: (4)
1. Individual (73%) - ANS--Primary Source of charitable contributions
-Retirees most generous group of individuals
-Volunteers give more than twice the % of annual income to charity as those who give
but do not volunteer.
Source of Financial Support: (4)
2. Foundation (15%)--- DEFINITION - ANS-a). Nonprofit, nongovernmental org w/ a
principal fund of endowments of its own
b). An org which maintains or aids charitable, educational, religious, or other activities
serving the public good primarily by making grants to other nonprofits.
c). Required to distribute at least 5% of assets to nonprofits annually.
d). Org created and organized as a corp or charitable trust under state laws and which
receives federal, tax exempt status from the IRS.
TYPES OF FOUNDATIONS: (4) - ANS-1. Independent
2. Corporate
3. Community
4. Operating
TYPES OF FOUNDATIONS: (4)
1. Independent - ANS-A fund of endowment, designated by the IRS as a private
foundation, the primary function of which is to make grants. It's assets are typically
derived from gifts of an individual or family. AKA "special or general purpose funds".
TYPES OF FOUNDATIONS: (4)
2. Corporate - ANS-Private foundations set up to make grants which it funds from a
profit making business but most often functions in concert with corporate policies and
interests. Governance and management of the corporations may include company
employees as well as non employees. Corporations may also have giving programs that
are not channeled through the foundation.
TYPES OF FOUNDATIONS: (4)
3. Community - ANS--Usually classified as a public charity.
-Community foundations function like independent foundations.
-Funds are derived from MANY donors rather than a single donor (as seen in
independent)
-Most often ested to serve a speciffic geographic area
, TYPES OF FOUNDATIONS: (4)
4. Operating - ANS-Private foundation that conducts research, promotes social welfare,
and engages in programs determined by its governing body/establishment charter and
rarely makes grants. Must spend 85% of its income on its own activities.
Examples: Getty Trust, Kettering Foundation, Liberty Fund, Amherst Wilder Foundation
TYPES OF FOUNDATION GRANTS: (5) - ANS-1. General Operating Support
2. Program/Project
3. Capital
4. Pilot
5. Challenge/Matching
Source of Financial Support: (4)
3. Corporations (5%) - ANS-Corporate Productivity Model (Most used Model)
a.) Corporate philanthropy is intended to help corp increase profits
b) Corp giving departments must align their contributions with the bottom line.
c) Fundraisers must design requests around projects that can prove corp productivity
and provide contribution officers with arguments & evidence that the projects contribute
to bottom line efficiency
Types of Corporate Giving/ Funding for Projects that... - ANS-(Funding for projects
that...)
1. Help Market Corporate Products
2. Increase Employee Motivation
3. Lower Corporate Costs
4. Improve Corporate Image
Corporate Productivity Model:
(4) Models - ANS-1. Ethical/ Altruistic Model
2. Political Model: (External Version)
3. Political Model: (Internal Version)
4. Stakeholder Model
Corporate Productivity Model: (4 MODELS)
1. Ethical/ Altruistic Model - ANS-a). Corp leaders feel obligated to support societal
needs as their social responsibility
b). Assumption is Corps have discretionary resources
c). Corp giving programs must identify community priorities and alert corporate leaders
of needs.
