CFRE Exam Flashcards question n answers rated A+ 2023/2024

CFRE Exam FlashcardsAbility - correct answer An assessment of their financial capacity, stage of life, and the liquidity of their assets. Ability is often mistakenly tied to perceived income, which may not always be an accurate indicator of ability to give. Cultivation - correct answer Is a series of activities to maintain and deepen relationships and engagement with donors, prospective donors, and volunteers. Data Mining - correct answer Is the process of collecting, researching, analyzing, and segmenting information about donors, prospective donors, and volunteers. Data Privacy - correct answer Is the responsibility of the nonprofit organization to maintain secure digital records and to fully disclose any sharing of information with third-party organizations upon the acceptance of an individual's information Demographics - correct answer Refers to the statistical data of a population, including age, income, education, political affiliation, marital and family status, etc. Donor Profile - correct answer A concise record of an individual's linkage, ability, and interest in an organization. It contains verified contact info, giving history, and wealth indicators. Donor Qualifying - correct answer The ongoing process of assessing linkage, ability, and interest of your donors in order to match them with the right program, appeal, and amount. Donor Rating - correct answer The process by which current donors are evaluated by staff and volunteers (board members) for their capacity to make a gift of significance (major gift, planned gift, lead gift, etc.) Engagement - correct answer An ongoing effort to learn about your donors, communicate with them, and offer shared experiences (volunteering, events, etc.) Frequency - correct answer Refers to how often a donor gives, and to which repeated appeals. Giving History - correct answer The sum total of a donor's giving records. This includes frequency, renewal rate, appeal responses, average gift, highest gift, most recent gift, etc. Interest - correct answer A donor or prospective donor's level of interest correlates to their likelihood of making a gift. Interest, from the nonprofit viewpoint, is the combination of concern, excitement, motivation, and engagement an individual has for your organization's mission. Lifetime Donor Value - correct answer An estimate of total current and future contributions to your organization. It is typically determined by multiplying lifespan times average donation amount times frequency of donation Lifetime Donor Value Equation - correct answer Value= Lifespan x Amount x Frequency Linkage - correct answer Refers to the connections a donor or prospective donor has to your organization and/or its mission. These could be in the form of experience (former alum, program participant), connections with people (friend, relative, colleagues), shared values (advocacy, stage of life), and personal history. Market Research - correct answer Refers to the process of gathering, organizing, and interpreting data regarding donor preferences, attitudes, interests, and giving ability. Prospect - correct answer One who has been evaluated based on donor research and found to have a connection to the organization, the ability to give an appropriate level, and an interest in the organization's mission. Renewal Rates - correct answer Is the percentage of donors who make a subsequent gift to the organization. Often tracked to a specific appeal (such as those who renew to an annual appeal) or tracked by giving in general (those who give any gift to any appeal after their initial gift). Renewal rates are often a reflection of how well the organization thanks its donors and keeps them informed of how gifts are used. Also know as attrition rates. Segmentation - correct answer Is the process of grouping donors and prospective donors into like categories in order to more efficiently allocate resources and target appeals. Donors can be segmented