CFRE Practice Exam Questions and Answers with Complete Solution.

CFRE Practice Exam Questions and Answers with Complete Solution. If a donor states that the amount of money an organization is asking for is very large, the best response is to tell the prospective donor that: - Answer the amount is large, but emphasize the value and long term impact of the gift. When is the most appropriate time to begin devoting time and energy into the development and nurturing of a relationship with a donor? - Answer Immediately upon receipt of the donor's first gift, irrespective of the gift size The primary purpose of rating an organization's prospective donors is to determine their: - Answer potential to give to the organization. When budgeting the costs for a new fundraising software package, in addition to the initial purchase and upgrades, a fundraiser also should factor in: - Answer the cost for maintenance and warranties. The primary challenge in maintaining an effective relationship between a donor and a fundraiser is: - Answer maintaining professional balance in the relationship. Based on based giving records, a fundraiser is visiting a prospective major gift donor for the first time. Because the prospective donor has never been visited by the organization, the most appropriate strategy is to: - Answer learn about the prospective donor's interests and link to the organization. The most essential factor in sending gift acknowledgement letters is: - Answer speed of delivery. The first prospects to be asked to support any campaign are the: - Answer board members In marketing, what does SWOT analysis stands for? - Answer strength, weakness, opportunities, threats In order to be effective, it is essential that the vision and mission be continually expressed by the organization's: - Answer leadership When interviewing prospective fundraising employees, it is most important to avoid: - Answer questions that may be construed as personal. When developing a specific solicitation plan for an individual donor, the most important considerations are: - Answer the connection between a prospective donor's passion and an organization's need. When soliciting leadership gifts for an organization, it is most important to: - Answer enlist the prospect's peers to make the visit. A governing board's principal relationship is with the organization's: - Answer chief executive officer. CFRE Practice Exam Already Graded A+ Which of the following responses best describes three hidden costs encountered in a capital project? - Answer Fundraising, attrition, and inflation In the context of rating prospective donors, LAI stands for: - Answer linkage, ability, interest. In evaluating fundraising programs, the relationship between fundraising costs and results is linked to each method used, the maturity of each program, and - Answer previous performance. An organization has decided to hire a local fundraising consultant to work in its office one day per week to oversee and direct a campaign. The CEO has asked you to ensure the organization's interests are protected. A contract should be written establishing that the consultant will be paid: - Answer in accordance with a code of professional ethics. Establishing the financial range of gifts that a donor will reasonably consider is referred to as a donor: - Answer rating The single most important element in a direct mail campaign is: - Answer the list of prospective new donors. Which method is most effective in establishing a two-way relationship with a donor? - Answer Allowing the donor to select the time, frequency and method. In hiring a firm for contracted services, it is best to start with: - Answer referrals. The most important open line of communication is between the fundraising director and the organization's - Answer chief executive officer. Before beginning to write the case for support for an upcoming campaign, it is most important to: - Answer acquire an understanding of the various donor target markets. Which of the following is the most critical factor affecting the success of a capital campaign? - Answer Leadership by the board. A nonprofit organization considering a new planned giving/legacy program must first: - Answer understand it may take years for a return on investment. The fundraiser has been asked to report on monthly activities. In designing the written report, what are the best activities to measure? - Answer Phone calls, visits, solicitations An integrated approach to fundraising is best described as: - Answer matching cases with constituencies and setting goals for each segment and each case or campaign. Which statement is the most true about solo solicitors? - Answer May be appropriate depending on the relationship between the prospective donor and solicitor.