CFRE Practice Exam Questions with Correctly
Elaborated Solutions 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: - 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.
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
Accuracy in constituents' records within an organization's donor database is best measured by the
number of: - Answer valid addresses
When an evaluation component is being incorporated into a funding proposal, all of the following steps
are necessary except: - Answer stating objectives as broadly as possible.
Effective use of volunteers is essential to fundraising success. Which is the most important rule in using
volunteers? - Answer Avoid wasting volunteer's time.
Elaborated Solutions 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: - 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.
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
Accuracy in constituents' records within an organization's donor database is best measured by the
number of: - Answer valid addresses
When an evaluation component is being incorporated into a funding proposal, all of the following steps
are necessary except: - Answer stating objectives as broadly as possible.
Effective use of volunteers is essential to fundraising success. Which is the most important rule in using
volunteers? - Answer Avoid wasting volunteer's time.
