CFRE Exam Questions and answers. 100% Accurate, rated A

CFRE Exam Questions and answers. 100% Accurate, rated A Which of the following sectors attracts the most philanthropic support? - ✔✔-a.Social causes b.Education* c.The Arts d.Healthcare Which of the following indi ...

CFRE Exam Questions and answers. 100% Accurate, rated A Which of the following sectors attracts the most philanthropic support? - ✔✔-a.Social causes b.Education* c.The Arts d.Healthcare Which of the following individuals is most likely to give a major gift ? - ✔✔-1. A current donor 2. An event attendee 3. A friend of a board member 4. A well-researched prospective donor The most appropriate role for a volunteer in thanking donors is to: - ✔✔-1. Write a personal note 2. Send an invitation to a recognition event 3. Send an official gift receipt 4. Report on how gifts were expended The process of volunteers examining constituent lists to identify prospective donors for a major gift is called: - ✔✔-1. Peer screening 2. Segmenting 3. Prospect management 4. Volunteer review Most donor advised funds are managed by: - ✔✔-1. Financial service firms 2. Individual financial planners 3. Individual donors 4. Donor giving circles Growth of the Nonprofit Sector - ✔✔-Philanthropy and nonprofit organizations have always played a significant role in American Society. They plan an even more significant role today. The nonprofit sector has grown to be a larger part of the U.S. economy. Is what other country does philanthropy plays a larger role than in the us? - ✔✔-none Seven significant roles that nonprofit organizations and philanthropy play in a civil society are: - ✔✔- They reduce human suffering Enhance human potential Promote private equity and justice Build community Provide human fulfillment Support experimentation and change Foster pluralism Along with the challenges brought by rapid growth in organizations and philanthropic giving, a number of other matters affect the way fundraisers do their work. These are: - ✔✔-Accountability Narrow Broad Blurring the Boundaries Entrepreneurial Models Accountability-- 3 things - ✔✔-•Funders and donors have increased their gift restrictions and continued their call for accountability. •Program evaluation, focus on results, and even impact studies to measure return on gifts have become more common. •Fund raisers need to make certain that their organizations are prepared to respond. According to INDEPENDENT SECTOR "narrow" accountability refers to: - ✔✔-1.the formal responsibilities of individuals and organizations to report their actions to higher authorities(IRS) 2.the specific reporting mechanisms they are instructed to use (990) 3.the formal standards to which they are held. How can one ensure narrow accountability - ✔✔-To ensure narrow accountability, nonprofit organizations must implement formal reporting structures to comply with applicable laws and regulations. Broad Accountability Considered to be - ✔✔-1."serving the public good" 2."preserving the public trust" 3."often implicit and subjective" "Broad" accountability encompasses narrow accountability and builds on it by expanding it in two important ways: - ✔✔-1.Broadens the set of higher authorities to whom individuals or organizations are potentially responsible 2.Broadens the criteria expectations and standards to which these individuals and organizations may potentially be held How is an organization is held accountable by the public's trust. - ✔✔-Broad Accountability is "being able to account for the organization's implied promises to its constituents by pursuing its stated mission in good faith with defensible and transparent management and governance practices." What is income stream is increasing faster in Nonprofit organizations - ✔✔-both fee income and government funding at rates higher than philanthropy. Have Nonprofits have become more interdependent rather than dependent? - ✔✔-independent Also blurring hte lines of nonprofit are For profits entered fields like - ✔✔-health care, education, and social service that were once the sole province of the nonprofit sector. Entrepreneurial Models How do nonprofits do this? 2 examples - ✔✔-Nonprofits have adopted entrepreneurial models, sometimes forming for-profit subsidiaries to earn income that is used to support subsidized activities. Nonprofits earn marketing income through a variety of schemes, sometimes compensating staff on a commission basis for marketing and business income. It is ethical to be compensated on a percentage basis for market-based revenue, - ✔✔-true it is ethical to be compensated on a percentage or commission basis for philanthropic funds raised. - ✔✔-false Donors are (5 things) - ✔✔-different from each other and from the previous generations. Donors are interested in pursuing very distinctive projects. Donors accumulated wealth quickly in the 1990s are interested in pursuing philanthropy at an earlier age. Donors have developed a "venture philanthropy" approach. Donors with a good project vs organizations with a good cause, merging the two can be challenging. Engaging Constituents: The generation born between 1910 and 1930 has been called - ✔✔-"the long civic generation" because they volunteered more than any generation before or since. Studies show that _________________ are coming back to volunteering, perhaps stimulated by programs such as AmeriCorps, Vista and Learn and Serve. - ✔✔-young people All affect fund raising, new models and methods must be developed to engage these new generations. (how 4 ways) - ✔✔-Volunteer on an ad hoc basis rather than make a long-term commitment Prefer to provide direct service rather than become involved at the policy level Want to volunteer with friends and coworkers and view volunteering as a social activity Challenge nonprofits because they lack the structures to engage volunteers on their terms In evaluating fundraising programmes, the relationship between fundraising costs and results is liked to each method used, the maturity of each programme, and: A.previous performance B.timing in the year C.dollars raised D."bottom line" total revenue - ✔✔-A.previous performance Annual donors should be asked to upgrade their gift upon renewal, because: A.research indicates that it works effectively B.85-90% of donors are likely to increase their gift C.donors will reengage their giving patters when asked D.it is an effective cost-saving measure - ✔✔-A.research indicates that it works effectively The most critical aspect of a successful fundraising programme is how the fundraiser: A.stewards donors B.manages information C.counts pledges D.retains staff - ✔✔-stewards donors The most important, well-thought, board-approved institutional policy that every fundraising entity should have and follow is a: A.volunteer involvement policy B.board of trustee personal gift policy C.staff retention policy D.gift acceptance policy - ✔✔-gift acceptance policy Successful fundraising management is the convergence of good people relationships and good: A.business practices B.relationships with the board and community C.individual performance D.team-building skills - ✔✔-business practices Every major gift ask includes four parts: A.small talk, making the case, the ask, and the response. B.building rapport, communicating impact, discussing tax benefits, and recognition. C.warm-up, the ask, the response, and the close. D.asking donor goals, the ask, the negotiation, signing the paperwork. . - ✔✔-warm-up, the ask, the response, and the close A fundraiser for an organisation that delivers meals to the elderly is considering a list of donors. Ms. B is an 80-year-old widow of a wealthy attorney who recently became a volunteer. Ms. B should be considered as a prospect for the organisations: A.Annual Fund B.Wills and Bequest programme C.Major Gift Programme D.Capital Campaign - ✔✔-Annual Fund A fundraiser for a private K-12 girl's school is considering a list of donors. Ms. A retired 10 years ago after teaching at the school for 35 years. She has no children and lives with her husband who used to run a small business. Although they have a modest income, the couple has given several gifts to the school. Ms. A should be considered as a prospect for which of the following giving opportunities? A.Major Gift B.Planned Giving Programme C.Major sponsor of the school's annual event D.Leadership gift for the capital campaign - ✔✔-Planned Giving Programme As part of its strategic plan, an organisation has decided to expand its fundraising office from one person to five. Of the following positions, which would be the LAST position that would need to be added? A.Grant Writer B.Administrative Assistant C.Major Gifts Officer D.Planned Giving Officer - ✔✔-Planned Giving Officer How large a gift may a donor leave a non-profit in his/her will before the value of the bequest is no longer deductible from the donor's taxable estate? A.$2,000,000 B.$3,000,000 C.No limit D.One-half - ✔✔-No limi