CFRE - Exam Practice Questions With Correct Answers

CFRE - Exam Practice Questions With Correct Answers Philanthropy - answervoluntary action for the common good... - Robert L. Payton, as quoted in Greenfield's Fundraising Fundamentals Number of nonprofits registered with IRS - answerUS: 1.4 mil; 63% registered as 501c3... 161K in Canada Donors give for the following reasons - answermoral 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 giving nearly always implies - answersome sort of connection to the org giving may provide - answersome type of return in what the org will do for them or someone close to them effective fundraisers seek to discover... - answerwhat is important to any potential donor, and tap that need to encourage and support giving. This requires being able to look at the org's mission and programs through the eyes of the donor rather that from the perspective of those who run the org. key activities in fundraising - answerresearch, marketing, relationships, ethics & accountability Research supports fundraising by - answeridentifying stakeholders and potential donors, providing info about stakeholders, ensuring appropriate resource allocation, planning, evaluation, rating stakeholders for relationship building and service priorities Roles of marketing in fundraising - answercommunicate purpose and activities, promote mission and case for support, encourage participation in fundraising activities, encourage donations, communicate fundraising results, advocate the case Relationships - answerthe heart of fundraising Relationships support fundraising by - answeradding prospects and developing them into active/regular donors, support other types of contributions, engage stakeholders in the organization, integrate with research and marketing, allow getting to know prospects and interests, support stewardship ethics and accountability ensure - answerstakeholder trust and confidence, assets are managed and accounted for data collected and used properly, donor privacy and rights maintained, reporting/other requirements fulfilled, programs executed as promised, donors are retained Why research? - answerensures appropriate resource allocation, helps build staff and volunteer confidence, adds element of joy an discovery to prospecting How does Research ensure appropriate resource allocation? - answerallows staff/volunteers to focus efforts on prospects who can provide the most good.... Helps in planning how to use volunteers in the organization (number and types of volunteers needed) How does Research help build staff and volunteer confidence? - answerBacked by good information, the process of cultivation and solicitation has greater chances for success. How does good Research add an element of joy and discovery to prospecting? - answeradds confidence, which eliminates anticipation of prospecting as a chore, makes it more like solving a good mystery - with whom can we successfully connect? How can we make our case compelling? How much will they give? Marketing - a formal definition - answerthe process of gathering, recording, and analyzing information pertaining to the marketing of goods and services Marketing - a simpler definition - answerthe process of finding out the wants and needs of current and potential markets Rosso's Concentric Circles - outer circle - answerPeople with similar interests Rosso's Concentric Circles - at the core - who are these primary stakeholders? - answerMajor Donors, Board, Management Staff (these people have the responsibility to bring those in the outer circles closer) Rosso's Concentric Circles - second to outer circle - answerFormer Participants Rosso's Concentric Circles - closes to core - answerClients, Members, Employees, Volunteers, General Donors Critical Factors for a Philanthropy-Friendly Environment - answerdonor-focused research... targeted cases, constituents, methods... strategic communications... stewardship - the most important of all The critical balance - answerDevelopment professionals must find a way to balance the needs of the community with the interests/needs of donors and the needs of the organization Prospecting: the definition - answerThe systematic acquisition and recording of data that forms the basis for establishing, maintaining, and expanding the long-term gift relationship, with the ultimate goal of converting donors into major gift donors (looking for the fundraising gold!) 7 points of constituency development - answerIdentify fundable projects (part of org's strategic plan and objectives)... match prospects to projects (use Rosso's model)... Conduct research in ways that are: thorough and realistic, cumulative and ongoing (keep current), organized, ethical and confidential... Identify opportunities to involve prospects What's the difference in a Prospect (suspect) and a Qualified Prospect? - answerProspect/suspect is a possible source of support whose philanthropic interests appear to be a match with your organization, whose ability to give, interests, and linkages have not been qualified via research..... Whereas a Qualified Prospect is a prospect who continues to qualify as a logical source of support for the organization throughout a research, evaluation, and cultivation process the best research method depends on... - answerthe org's scope, resources and objectives... and on whether prospects are individuals, business/corp's, foundations, gov agencies, or other nonprofits Research methods to consider... - answermailed/electronic questionnaires... internet databases... in person interviews... telephone interviews Four sources of information for Research - answer1. Personal contacts (conversations, interviews, surveys)... 2. Publications/reports (journals, newspapers, directories, magazines, philanthropic directories, annual reports, corp/foundation community involvement reports... 3. Participation records (event attendees, program participants, those who inquire)... 4. Public information information to include in a useful prospect profile - answercomplete contact info, biographical data, business history, giving history with your org, cultivation/solicitation contact records, publicly available giving info from other orgs, sources of info checked for prospect and most recent review dates, general and specific interests Research pitfalls - answerputting off research until you "have time", expecting interns or new volunteers to know what to gather, sending out cultivation/solicitation teams with incorrect information, trying to find out everything about everybody Prospect/donor profiles help you select the right... - answerright person... to ask the right person... at the right time... in the right way... for the right amount Inquiries to use in researching foundations... - answeris there support for similar agencies?... Does the foundation clearly state support for the type of project and/or contribution sought?... Is funding provided in the org's geographic area?... Is the request amount compatible with prior giving hi