CFRE Exam Questions And Answers 2024

The most effective marketing vehicles for planned giving are considered to be: a. Personal visits with the donor, direct mail, blogging, and email. b. Direct mail, newsletters, wills clinics, estate planning seminars, and by educating other professionals. c. Initial visit with donor, followed by letter reiterating planned giving options followed by email or telephone communication. d. All of the above. - correct answer-b. Direct mail, newsletters, wills clinics, estate planning seminars, and by educating other professionals. Financial statements are useful because: a. In the for-profit arena, they help investors and creditors make better economic decisions while in nonprofit organizations, the cash flow analysis is an indicator of the financial health of the organization b. In the nonprofit arena, they help board members make better economic and strategic decisions, while in the for-profit arena, the cash flow analysis is a better indicator of the financial health of the organization c. They illustrate economic health as GAAP ensures that financial statements are accurate and timely d. They ensure that outside auditors are monitoring financial health of the organization - correct answer-a. In the for-profit arena, they help investors and creditors make better economic decisions while in nonprofit organizations, the cash flow analysis is an indicator of the financial health of the organization Sylvia Gotrocks has been identified as a new prospect for your organization. Your researcher has determined that she has an annual disposable income of $200,000 and a family farm currently on the market for $2 million. You should approach Sylvia for: a. An annual gift b. A major gift in support of your capital campaign, part of which support a Center on Renewable Energy and the use of corn hybrids c. A gift of real estate d. An outright bequest to your organization in Sylvia's will - correct answer-a. An annual gift What is the best indicator that your solicitation strategies are meeting the ethical standards established by AFP: a. You provide all donors with appropriate gift receipts for tax preparation b. You send an appropriate peer solicitor on calls to make the prospect feel more comfortable c. You make certain that support of your organization's mission is more important than any other gain d. You develop relationships over time with prospects and donors, allowing them to feel comfortable with the organization and the process - correct answer-d. You develop relationships over time with prospects and donors, allowing them to feel comfortable with the organization and the process In your old job with a highly regarded, financially stable organization, you developed a close working relationship with an elderly couple who set up a revocable trust with the organization. You then move to a new organization whose financial situation is somewhat shaky. Several months later the couple comes to you and says that because they have such confidence in your ability to look after their interests, they want to revoke the original trust and set up a new one through you and your new organization. a. Suppose the couple proposed to make a major gift to your new organization without revoking the old trust. What should you do? b. Accept the offer on behalf of your organization c. Reject the offer d. Ask the CEO of your organization to make the decision e. Ask the couple to work with someone else in your new organization. - correct answer-e. Ask the couple to work with someone else in your new organization. The mission of FASB is to: a.Monitor the financial and accounting industry for the benefit of the public including: issuers, auditors and users of financial information- including charities b. Provide resources, information and leadership relative to financial accounting and reporting- particularly as it relates to the preparation of financial statements