Glossary CFRE questions and answers graded A+ 2023/2023/2024

Glossary CFREaccountability - 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 a 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 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 in advance of a public announcement of a campaign. Advanced gifts are solicited before a campaign is announced because the success or failure of a campaign may depend on the size of the advanced 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 goal 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 budge support annual report - correct answer a yearly report of financial and organizational conditions prepared by the management of the 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 a professional fundraising counsel bargain sale - correct answer the sale of a 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 an 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