CFRE PRACTICE EXAM | 200+ QUESTIONS AND ANSWERS
VERIFIED BY EXPERT | LATEST UPDATE
Question 1
The most important approach to utilize the strength of volunteers in fundraising is to?
A) Provide them with a detailed procedural manual for all tasks.
B) Have them exclusively perform administrative or clerical tasks.
C) Ensure they are present at all internal staff strategy meetings.
D) Assign tasks that match volunteers' interests and skills.
E) Offer small financial stipends for completed fundraising goals.
Correct Answer: D) Assign tasks that match volunteers' interests and skills.
Rationale: Volunteers are most effective, motivated, and retained when they are engaged in
work that aligns with their personal passions and leverages their existing abilities. This
strategy leads to higher quality work, greater satisfaction for the volunteer, and a stronger
connection to the organization's mission. While procedural manuals are useful (A), they
don't utilize inherent strengths. Limiting volunteers to administrative tasks (B) wastes
potential talent. Including them in all meetings (C) can be inefficient, and financial
incentives (E) can blur the line between volunteering and employment, potentially
diminishing intrinsic motivation.
Question 2
The best practice for acknowledging a gift from a first-time donor is to?
A) Send a standard, pre-printed thank you card at the end of the month.
B) Add them to the general monthly e-newsletter.
C) Thank the donor within 48 hours.
D) Wait until their check has cleared the bank before sending an acknowledgment.
E) Immediately ask them for a second, larger gift.
Correct Answer: C) Thank the donor within 48 hours.
Rationale: Prompt and personal acknowledgment is critical for first-time donor retention.
Acknowledging the gift within 48 hours demonstrates efficiency, shows the donor they are
valued, and begins the stewardship process on a positive note, making them more likely to
give again. Waiting too long (A, D) can make the donor feel unappreciated. A generic
newsletter (B) is not a substitute for a personal thank you, and an immediate subsequent
ask (E) is premature and can be perceived as transactional rather than relationship-
focused.
Question 3
Volunteers in not-for-profit organizations may expect their performance evaluation from?
A) The organization's top major donor.
B) The Executive Director exclusively.
C) External auditors during the annual review.
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D) Peers.
E) The Human Resources department.
Correct Answer: D) Peers.
Rationale: In a healthy volunteer structure, performance feedback and evaluation often
come from peer leaders or fellow volunteers with whom they work closely, such as a
committee chair. This creates a collaborative and supportive environment. The Executive
Director (B) may be too far removed from the day-to-day work of every volunteer. Major
donors (A), auditors (C), and HR (E) are generally not involved in the direct operational
evaluation of volunteer performance.
Question 4
What is the best first step in the major gift cultivation process?
A) Send a generic form letter requesting a large donation.
B) Invite the prospect to the annual gala.
C) Ask the prospect for a small "test" gift.
D) Identify prospective donors.
E) Prepare a detailed grant proposal.
Correct Answer: D) Identify prospective donors.
Rationale: The entire major gift process cannot begin until potential donors have been
identified through prospect research. This foundational step involves finding individuals
with the linkage (connection to the cause), ability (financial capacity), and interest
(inclination to give) to make a major gift. All other cultivation steps, such as invitations (B)
or asks (A, C), are premature without first identifying who the right prospects are.
Question 5
A primary function of most special events is to?
A) Exclusively raise unrestricted operating funds.
B) Replace the need for an annual fund campaign.
C) Provide a performance review for the development staff.
D) Allow the board to delegate all their fundraising responsibilities.
E) Heighten the organization's profile.
Correct Answer: E) Heighten the organization's profile.
Rationale: While special events can and often do raise funds, a key strategic function is to
increase public awareness, engage new constituents, and enhance the organization's image
in the community. They serve as a "friend-raiser" as much as a fundraiser. Events rarely
raise enough to be the sole source of operating funds (A) or replace a comprehensive
annual fund (B). They are not primarily for staff reviews (C) or a way for the board to
abdicate its role (D).
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Question 6
A donor tells a fundraising professional very personal information that would be helpful in
fundraising efforts. The most appropriate action would be to?
A) Immediately share the information with the entire development team.
B) Record and use the information only with the donor's permission.
C) Use the information to craft an immediate, high-pressure solicitation.
D) Share the information with board members to show your insider knowledge.
E) Keep the information entirely to yourself and never record it.
Correct Answer: B) Record and use the information only with the donor's permission.
Rationale: This action respects the donor's privacy and upholds ethical standards as
outlined in the Donor Bill of Rights. A fundraiser's relationship with a donor is built on
trust. Using sensitive information requires explicit consent. Sharing it without permission
(A, D) is a breach of confidentiality. Using it for a high-pressure ask (C) is manipulative.
Not recording it at all (E), even with permission, could mean losing valuable context for
future appropriate engagement.
Question 7
A fundraiser is charged with identifying prospects for a planned giving or legacy program and
starts with the annual fund donor list. The most critical indicator of a donor's willingness to
support the organization in a more significant way is the?
A) Size of their single largest annual gift.
B) Donor's age and marital status.
C) Number of years the donor has made a gift.
D) Donor's professional title or corporate affiliation.
E) Quickness of their response to the last appeal.
Correct Answer: C) Number of years the donor has made a gift.
Rationale: Loyalty is the number one predictor of who will make a planned gift. A long
history of consistent giving, regardless of the amount, demonstrates a deep commitment to
the organization's mission and a high level of trust, which are prerequisites for considering
a legacy gift. While gift size (A) and demographics (B) are factors, consistent giving over
time is the strongest indicator of loyalty.
Question 8
Approaches for major gifts must at least?
A) Be made by the board chair in person.
B) Guarantee a specific, tangible return on investment for the donor.
C) Be for a minimum of $25,000.
D) Show how a project or gift will fit into the organization's future.
E) Include a detailed, 50-page proposal.
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Correct Answer: D) Show how a project or gift will fit into the organization's future.
Rationale: Major gift donors are investors in the organization's mission and vision. They
need to understand the long-term impact of their contribution and how it advances the
organization's strategic goals. The ask must be tied to a compelling vision for the future.
The solicitor (A) can vary, guaranteed returns (B) are not the nature of philanthropy, the
definition of a major gift (C) varies, and the proposal length (E) depends on the donor and
project.
Question 9
Which of the following has the best chance for success in a direct mail program?
A) Mailing to a large, purchased list of names in the same zip code.
B) A postcard with minimal information to save on postage.
C) Targeted mailing to a group of people who have a relationship to the organization.
D) A complex and jargon-filled letter to demonstrate expertise.
E) Sending the exact same letter to every person on the mailing list.
Correct Answer: C) Targeted mailing to a group of people who have a relationship to the
organization.
Rationale: Direct mail is most effective when the audience has a pre-existing connection or
"linkage" to the organization (e.g., past donors, volunteers, alumni, clients). This "warm"
list will always outperform a "cold," untargeted list (A). Success depends on
personalization and relevance, not just saving on postage (B) or using complex language
(D). Segmenting the list and tailoring the message (as opposed to E) will yield better results.
Question 10
Arranging for prospective donors to meet with an organization's leaders, sending handwritten
notes, and issuing invitations to site tours are good examples of?
A) Solicitation.
B) Stewardship.
C) Prospect research.
D) Cultivation.
E) Marketing.
Correct Answer: D) Cultivation.
Rationale: Cultivation consists of the activities an organization undertakes to build and
strengthen relationships with prospective donors before a solicitation is made. The goal is
to deepen their engagement and understanding of the mission. The examples given—
meetings, personal notes, tours—are all classic cultivation strategies designed to increase
involvement and interest. Solicitation (A) is the act of asking for the gift, and stewardship
(B) is the relationship management that happens after a gift is made.
Question 11
When adding staff for an expanded program, it is best to hire?
VERIFIED BY EXPERT | LATEST UPDATE
Question 1
The most important approach to utilize the strength of volunteers in fundraising is to?
A) Provide them with a detailed procedural manual for all tasks.
B) Have them exclusively perform administrative or clerical tasks.
C) Ensure they are present at all internal staff strategy meetings.
D) Assign tasks that match volunteers' interests and skills.
E) Offer small financial stipends for completed fundraising goals.
Correct Answer: D) Assign tasks that match volunteers' interests and skills.
Rationale: Volunteers are most effective, motivated, and retained when they are engaged in
work that aligns with their personal passions and leverages their existing abilities. This
strategy leads to higher quality work, greater satisfaction for the volunteer, and a stronger
connection to the organization's mission. While procedural manuals are useful (A), they
don't utilize inherent strengths. Limiting volunteers to administrative tasks (B) wastes
potential talent. Including them in all meetings (C) can be inefficient, and financial
incentives (E) can blur the line between volunteering and employment, potentially
diminishing intrinsic motivation.
Question 2
The best practice for acknowledging a gift from a first-time donor is to?
A) Send a standard, pre-printed thank you card at the end of the month.
B) Add them to the general monthly e-newsletter.
C) Thank the donor within 48 hours.
D) Wait until their check has cleared the bank before sending an acknowledgment.
E) Immediately ask them for a second, larger gift.
Correct Answer: C) Thank the donor within 48 hours.
Rationale: Prompt and personal acknowledgment is critical for first-time donor retention.
Acknowledging the gift within 48 hours demonstrates efficiency, shows the donor they are
valued, and begins the stewardship process on a positive note, making them more likely to
give again. Waiting too long (A, D) can make the donor feel unappreciated. A generic
newsletter (B) is not a substitute for a personal thank you, and an immediate subsequent
ask (E) is premature and can be perceived as transactional rather than relationship-
focused.
Question 3
Volunteers in not-for-profit organizations may expect their performance evaluation from?
A) The organization's top major donor.
B) The Executive Director exclusively.
C) External auditors during the annual review.
,[Type here]
D) Peers.
E) The Human Resources department.
Correct Answer: D) Peers.
Rationale: In a healthy volunteer structure, performance feedback and evaluation often
come from peer leaders or fellow volunteers with whom they work closely, such as a
committee chair. This creates a collaborative and supportive environment. The Executive
Director (B) may be too far removed from the day-to-day work of every volunteer. Major
donors (A), auditors (C), and HR (E) are generally not involved in the direct operational
evaluation of volunteer performance.
Question 4
What is the best first step in the major gift cultivation process?
A) Send a generic form letter requesting a large donation.
B) Invite the prospect to the annual gala.
C) Ask the prospect for a small "test" gift.
D) Identify prospective donors.
E) Prepare a detailed grant proposal.
Correct Answer: D) Identify prospective donors.
Rationale: The entire major gift process cannot begin until potential donors have been
identified through prospect research. This foundational step involves finding individuals
with the linkage (connection to the cause), ability (financial capacity), and interest
(inclination to give) to make a major gift. All other cultivation steps, such as invitations (B)
or asks (A, C), are premature without first identifying who the right prospects are.
Question 5
A primary function of most special events is to?
A) Exclusively raise unrestricted operating funds.
B) Replace the need for an annual fund campaign.
C) Provide a performance review for the development staff.
D) Allow the board to delegate all their fundraising responsibilities.
E) Heighten the organization's profile.
Correct Answer: E) Heighten the organization's profile.
Rationale: While special events can and often do raise funds, a key strategic function is to
increase public awareness, engage new constituents, and enhance the organization's image
in the community. They serve as a "friend-raiser" as much as a fundraiser. Events rarely
raise enough to be the sole source of operating funds (A) or replace a comprehensive
annual fund (B). They are not primarily for staff reviews (C) or a way for the board to
abdicate its role (D).
,[Type here]
Question 6
A donor tells a fundraising professional very personal information that would be helpful in
fundraising efforts. The most appropriate action would be to?
A) Immediately share the information with the entire development team.
B) Record and use the information only with the donor's permission.
C) Use the information to craft an immediate, high-pressure solicitation.
D) Share the information with board members to show your insider knowledge.
E) Keep the information entirely to yourself and never record it.
Correct Answer: B) Record and use the information only with the donor's permission.
Rationale: This action respects the donor's privacy and upholds ethical standards as
outlined in the Donor Bill of Rights. A fundraiser's relationship with a donor is built on
trust. Using sensitive information requires explicit consent. Sharing it without permission
(A, D) is a breach of confidentiality. Using it for a high-pressure ask (C) is manipulative.
Not recording it at all (E), even with permission, could mean losing valuable context for
future appropriate engagement.
Question 7
A fundraiser is charged with identifying prospects for a planned giving or legacy program and
starts with the annual fund donor list. The most critical indicator of a donor's willingness to
support the organization in a more significant way is the?
A) Size of their single largest annual gift.
B) Donor's age and marital status.
C) Number of years the donor has made a gift.
D) Donor's professional title or corporate affiliation.
E) Quickness of their response to the last appeal.
Correct Answer: C) Number of years the donor has made a gift.
Rationale: Loyalty is the number one predictor of who will make a planned gift. A long
history of consistent giving, regardless of the amount, demonstrates a deep commitment to
the organization's mission and a high level of trust, which are prerequisites for considering
a legacy gift. While gift size (A) and demographics (B) are factors, consistent giving over
time is the strongest indicator of loyalty.
Question 8
Approaches for major gifts must at least?
A) Be made by the board chair in person.
B) Guarantee a specific, tangible return on investment for the donor.
C) Be for a minimum of $25,000.
D) Show how a project or gift will fit into the organization's future.
E) Include a detailed, 50-page proposal.
, [Type here]
Correct Answer: D) Show how a project or gift will fit into the organization's future.
Rationale: Major gift donors are investors in the organization's mission and vision. They
need to understand the long-term impact of their contribution and how it advances the
organization's strategic goals. The ask must be tied to a compelling vision for the future.
The solicitor (A) can vary, guaranteed returns (B) are not the nature of philanthropy, the
definition of a major gift (C) varies, and the proposal length (E) depends on the donor and
project.
Question 9
Which of the following has the best chance for success in a direct mail program?
A) Mailing to a large, purchased list of names in the same zip code.
B) A postcard with minimal information to save on postage.
C) Targeted mailing to a group of people who have a relationship to the organization.
D) A complex and jargon-filled letter to demonstrate expertise.
E) Sending the exact same letter to every person on the mailing list.
Correct Answer: C) Targeted mailing to a group of people who have a relationship to the
organization.
Rationale: Direct mail is most effective when the audience has a pre-existing connection or
"linkage" to the organization (e.g., past donors, volunteers, alumni, clients). This "warm"
list will always outperform a "cold," untargeted list (A). Success depends on
personalization and relevance, not just saving on postage (B) or using complex language
(D). Segmenting the list and tailoring the message (as opposed to E) will yield better results.
Question 10
Arranging for prospective donors to meet with an organization's leaders, sending handwritten
notes, and issuing invitations to site tours are good examples of?
A) Solicitation.
B) Stewardship.
C) Prospect research.
D) Cultivation.
E) Marketing.
Correct Answer: D) Cultivation.
Rationale: Cultivation consists of the activities an organization undertakes to build and
strengthen relationships with prospective donors before a solicitation is made. The goal is
to deepen their engagement and understanding of the mission. The examples given—
meetings, personal notes, tours—are all classic cultivation strategies designed to increase
involvement and interest. Solicitation (A) is the act of asking for the gift, and stewardship
(B) is the relationship management that happens after a gift is made.
Question 11
When adding staff for an expanded program, it is best to hire?
