CFRE Practice Exam Top Questions and answers, 100% Accurate, graded A

CFRE Practice Exam Top Questions and answers, 100% Accurate, graded A 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: ...

CFRE Practice Exam Top Questions and answers, 100% Accurate, graded A 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: - ✔✔-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? - ✔✔-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: - ✔✔-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: - ✔✔-the cost for maintenance and warranties. The primary challenge in maintaining an effective relationship between a donor and a fundraiser is: - ✔✔-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: - ✔✔-learn about the prospective donor's interests and link to the organization. The most essential factor in sending gift acknowledgement letters is: - ✔✔-speed of delivery. The first prospects to be asked to support any campaign are the: - ✔✔-board members In marketing, what does SWOT analysis stands for? - ✔✔-strength, weakness, opportunities, threats In order to be effective, it is essential that the vision and mission be continually expressed by the organization's: - ✔✔-leadership When interviewing prospective fundraising employees, it is most important to avoid: - ✔✔-questions that may be construed as personal. When developing a specific solicitation plan for an individual donor, the most important considerations are: - ✔✔-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: - ✔✔-enlist the prospect's peers to make the visit. A governing board's principal relationship is with the organization's: - ✔✔-chief executive officer. Which of the following responses best describes three hidden costs encountered in a capital project? - ✔✔-Fundraising, attrition, and inflation In the context of rating prospective donors, LAI stands for: - ✔✔-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 - ✔✔-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: - ✔✔-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: - ✔✔-rating The single most important element in a direct mail campaign is: - ✔✔-the list of prospective new donors. Which method is most effective in establishing a two-way relationship with a donor? - ✔✔-Allowing the donor to select the time, frequency and method. In hiring a firm for contracted services, it is best to start with: - ✔✔-referrals. The most important open line of communication is between the fundraising director and the organization's - ✔✔-chief executive officer. Before beginning to write the case for support for an upcoming campaign, it is most important to: - ✔✔- 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? - ✔✔- Leadership by the board. A nonprofit organization considering a new planned giving/legacy program must first: - ✔✔-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? - ✔✔-Phone calls, visits, solicitations An integrated approach to fundraising is best described as: - ✔✔-matching cases with constituencies and setting goals for each segment and each case or campaign. Which statement is the most true about solo solicitors? - ✔✔-May be appropriate depending on the relationship between the prospective donor and solicitor Accuracy in constituents' records within an organization's donor database is best measured by the number of: - ✔✔-valid addresses When an evaluation component is being incorporated into a funding proposal, all of the following steps are necessary except: - ✔✔-stating objectives as broadly as possible. Effective use of volunteers is essential to fundraising success. Which is the most important rule in using volunteers? - ✔✔-Avoid wasting volunteer's time. What is the best indicator of an individual's capacity for support? - ✔✔-level of personal wealth An organization is faced with embarrassment due to public knowledge that an audit has raised questions about the expenditures of government grants. Concerned about donor reaction, the organization should: - ✔✔-be open and forthright in publicly stating its position. The first part of a fundraising appeal letter that a prospective donor will usually read is the: - ✔✔- postscript. The first step in writing a fundraising marketing plan is to: - ✔✔-analyse internal resources, the external environment, and macro factors. Of the following, the most important reason to maintain records of donations is to: - ✔✔-ensure that donors are acknowledged properly. In direct mail, different prospecting approaches are best used to determine: - ✔✔-cost effectiveness In a capital campaign program, the "special gift" opportunities offered to both large and small donors are commonly known as: - ✔✔-commemorative gifts You have analyzed the basic data (participants, income, and expense) from a direct-mail solicitation. In order to determine the key performances measurements and effectively evaluate your direct mail program, you will need to examine the: - ✔✔-percent participation, average gift size, net income, average cost per gift, cost of fundraising, and return. Special events are a major instrument in the promotion of causes and organizations. They also provide all of the following except a/an: - ✔✔-high probability of exceeding the goal. The most effective way to solicit major gifts is through: - ✔✔-person-to-person contact by a fundraiser of the appropriate level. The most important attribute of a promising prospective donor is: - ✔✔-interest and involvement in the donor-seeking organization. As part of its strategic plan, an organization 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? - ✔✔- planned giving officer Volunteers who are also donors give at: - ✔✔-significantly higher rates than donors who do not volunteer. When organizing a new fundraising program, the fundraising professional should first determine if the organization has: - ✔✔-a statement of purpose or mission. To move towards a successful "ask", it is most important for a constituency development plan to include: - ✔✔-strategic communication measures and approaches to reach constituents. The immediate goal of corporate participation in cause-related marketing is to: - ✔✔-enhance the corporate image. In which situation is a case statement used? - ✔✔-Ongoing fundraising programs To identify prospective consultants, the next step after getting budget approval is: - ✔✔-talking with various organizations and professional associations that have used consultants A fundraiser is planning to ask a large company to sponsor a special event. The first thing the fundraiser should do is: - ✔✔-see if the company has given to the organization in the past. The prospective donor is the head of a large publicly held corporation. One indication of the prospective donor's ability to make a gift might be found in that corporation's: - ✔✔-proxy statement. The primary objective of a cultivation call on a prospective major gift donor is to: - ✔✔-learn about the prospective donor's interest in the organization and its programs. The fundraiser's top ten prospective donors to a new campaign are most likely to be: - ✔✔-people who have given before. Defining board and staff leadership roles is best achieved by: - ✔✔-determining and conveying expectations. When an organization volunteers are ineffective, it is most often because they: - ✔✔-have not been appropriately trained by the organization. Securing corporate gifts is most improved by knowing the corporations - ✔✔-charitable giving decision makers Thank you receipts for gifts are most influential when sent to donors within - ✔✔-two days. For many organizations, it may be difficult to conduct an annual campaign and a capital campaign simultaneously. A best-practice approach would be to: - ✔✔-provide donors with a clear expectation of the importance of supporting both campaigns. To retain donors and increase their giving, it is most important to ensure that they: - ✔✔-understand how their gift will be used and the effect they will have on the organization. A request from a donor to change the receipt date for the donor's contribution is unethical: - ✔✔-in all circumstances. A contract between an organization and a consultant should include: - ✔✔-the scope of work describing services to be provided and performed and work to be accomplished. A fundraiser at an animal shelter is responsible for renting a mailing list for an acquisition mailing. The best list characteristics for success will consist of: - ✔✔-previous donors to another animal shelter. In recruiting to fill a board vacancy, the most important factor for the nominating committee to consider is the person's: - ✔✔-commitment to the organization and mission. Successful, value-based philanthropy and fundraising rely mostly on a: - ✔✔-compelling mission statement. Of the following, the most effective method of gift fundraising of a prospect would be: - ✔✔-a visit by a peer, accompanied by the organization's fundraising profes