CFRE EXAM SCRIPT UPDATED QUESTIONS AND ANSWERS
SURE A+
✔✔Donor behaviors - ✔✔1) are different from each other and from the previous
generation
2) are interested in pursuing very distinctive projects
3) accumulated wealth quickly in the 1990s are interested in pursuing philanthropy at a
younger age
4) have developed a venture philanthropy approach (projects)
5) with a good project v. NP was a good cause (merging the two are challenging)
✔✔Engaging constituents - ✔✔1) Generation (1910-1930) was the 'long civic
generation' since they volunteered more than any generation before or since
2) Studies show that young people are coming back to volunteering stimulated by
programs such as AmeriCorps, Vista and Learn & Serve
✔✔Younger generations - ✔✔1)Volunteer on an ad hoc basis rather than making a long
term commitment
2) Prefer to provide direct service rather than become involved at the policy level
3) Want to volunteer with friend and voworkers and view volunteering as a social activity
4) Challenge NPs because they lack the structure to engage volunteers on their terms
--new models must be developed to engage new generations
✔✔Professionalization of the Sector - ✔✔1) Management of NPOs have become more
professional and so has philanthropic fund raising
2) Graduate and undergrad degrees in philanthropic studies and NP Management are
increasing with expectation of continued growth
✔✔Professionalism (general) - ✔✔1) Better resources
2) More strategic approaches
3) Enhanced accountability
4) More effective fundraising
5) Enhanced and developed philanthropy
✔✔Professionalism - ✔✔1) Potential to diminish the volunteer experience
2) Disengage volunteers if not managed
3) Fundraisers focused more on their career development than on the needs of the NP
or donors
4) Continue to heighten the tensions surrounding compensation levels in the NP sector
5) Fundraising in NOT sales
✔✔Discernment Model - ✔✔1) Donor's interest becomes more important as the size of
the gift increases
2) Understanding donor's needs are critical
3) Supply side model focuses fundraising on the donor
,4) Demand side model focuses fundraising on the organization
5) Discernment model helps the donor decide on the organizational need to be
supported. Fundraisers listen and ask questions.
✔✔Rights (5) - ✔✔Right:
1) person
2) prospect
3) amount
4) cause
5) time
All steps focus on the donor
✔✔How is Philanthropy is present in all cultures? - ✔✔- role in building a civil society
- key motivators in the community
- richer traditions
- use of new techniques
✔✔How is philanthropy different in the US? - ✔✔1) more formal
2) more highly structured
3) a larger part of the economy than any other culture
✔✔What are the challenges of philanthropy? - ✔✔1) Creative partnerships dealing with
blurring of boundaries
2) balancing demand and supply side tensions
3) Engaging new types of volunteers
4) Redefining the profession and professional relationships
✔✔What is the philosophy of fundraising? - ✔✔Fundraising is the servant to
philanthropy and has been since the 17th century (means to an end).
✔✔What is means to an end wrt fundraising? - ✔✔1) Fundraising is guided by
mechanical forces but also moves toward a goal of self realization
2) Fundraising is never an end in itself
✔✔Fundraising - ✔✔1) should never be undertaken simply to raise funds
2) must serve the larger cause
3) is value based - values must guide the process
✔✔Claim v Earn - ✔✔An NP may claim the right to raise money by asking for a tax
deductible gift
BUT
An NP must earn the privilege to ask for a gift of support by:
1) its management's responsiveness to needs
2) the worthiness of the program
3) the stewardship of its governing board
,AN NP may assume the right to ask but the prospective donor is under no obligation to
give and must be respected for a yes or no answer.
✔✔Governance is... - ✔✔-an exercise in authority and control
✔✔Trustees, directors or regents - ✔✔1) are the primary stewards of the spirit of
philanthropy
2) hold the NPO in trust to ensure that it will continue to function according to the
dictates of its mission
3) the owners of the NP
4) hold the responsibility to define and interpret the mission
5) ensure that the organization will remain faithful to its mission
6) properly deploy resources and the accompanying actions
7) secure resources
8) serve as advocates, ambassadors and askers
✔✔A part of the whole - ✔✔1) FR projects the values of the total NP into the community
whenever it seeks gifts of support
2) All aspects of governance - admin, program and resource dev - are part of the whole
3) All elements must be part of the representation when gifts are sought
✔✔FR cannot function apart from - ✔✔1) the organization
2) its mission, goals objective and programs
3) a willingness to be held accountable for all its actions
✔✔Fundraising is - ✔✔1) and must always be the lengthened shadow of the NP entity,
reflecting the NP's dignity, its pride of accomplishment, and its commitment to service
2) FR by itself has no substance in the eyes and heart of the potential contributor
✔✔Gifts (4) - ✔✔1) Gift making is based on voluntary exchange
2) Gifts secured through coercion or through any means other than persuasion are not
gifts given freely nor have the meaning of philanthropy
3) Rarely gifts obtained under pressure or through any form of intimidation can be
repeated
4) Coercion is a legal matter
✔✔What is the giving process? - ✔✔1) Contributor offers a value to the non profit
2) Gift is made without any expectation of a material return, apart from the tax
deductibility
3) The reasons for the gift are manifold
✔✔Accepting Process - ✔✔Incumbent upon the organization to return a value to the
donor in the form other than material value
1) social recognition
2) satisfaction of supporting a worthy cause
, 3) a feeling of importance
4) a feeling of difference in resolving a problem
5) a sense of belonging
6) a sense of ownership in a program dedicated to serving the public good
✔✔Value of a gift - ✔✔1) misunderstanding of the value of a gift is often made and the
true meaning of the exchange relationship is violated by offering a return of substantive
value
2) misunderstanding alters the exchange, reduces the meaning of philanthropy, and
diminishes the gift
3) the transaction is one of material exchange, a self centered quid pro quo without the
spirit of philanthropy
✔✔No apologies please - ✔✔1) giving is a privilege, not a burden. Stewardship
nourishes the belief that people draw energy, a sense of self worth
2) Philanthropists see themselves as stewards of life's gifts to them
3) The person asking should not demean the ask by apologizing
4) There should always be joy in giving!
✔✔What is Ethical Fund Raising - ✔✔1) the push, the enabler, the activator of gift
making
2) the conscience to the process
3) fund raising is at its best when it matches the need of the NPO with the contributor's
need and desire to give
✔✔When is the practice of gift seeking justified? - ✔✔1) It exalts the contributor, not the
gift seeker
2) it is used as a responsible invitation, guiding contributors to make the kind of gift that
will meet their own special needs and add greater meaning to their lives
✔✔What is the privilege with respect to asking? - ✔✔1) An organization earns the
privilege to ask for fund by making a case for support
2) FR is the ongoing process of the interaction between the NPO and its public
3) Planning the appropriate interaction is critical for any program to be successful
✔✔How does planning begin? - ✔✔1) With a careful analysis of the NPO's strengths
and weaknesses that affect FR
2) It also considers threats and opportunities
3) how well a NPO delivers its services and modifies its programs in response to
changes in the environment impacts its FR success
✔✔How does the Case Statement begin? - ✔✔1) Who cares about us?
2) Why do we exist?
3) Understanding of their constituents
4) A strong mission statement supported by program globalization
SURE A+
✔✔Donor behaviors - ✔✔1) are different from each other and from the previous
generation
2) are interested in pursuing very distinctive projects
3) accumulated wealth quickly in the 1990s are interested in pursuing philanthropy at a
younger age
4) have developed a venture philanthropy approach (projects)
5) with a good project v. NP was a good cause (merging the two are challenging)
✔✔Engaging constituents - ✔✔1) Generation (1910-1930) was the 'long civic
generation' since they volunteered more than any generation before or since
2) Studies show that young people are coming back to volunteering stimulated by
programs such as AmeriCorps, Vista and Learn & Serve
✔✔Younger generations - ✔✔1)Volunteer on an ad hoc basis rather than making a long
term commitment
2) Prefer to provide direct service rather than become involved at the policy level
3) Want to volunteer with friend and voworkers and view volunteering as a social activity
4) Challenge NPs because they lack the structure to engage volunteers on their terms
--new models must be developed to engage new generations
✔✔Professionalization of the Sector - ✔✔1) Management of NPOs have become more
professional and so has philanthropic fund raising
2) Graduate and undergrad degrees in philanthropic studies and NP Management are
increasing with expectation of continued growth
✔✔Professionalism (general) - ✔✔1) Better resources
2) More strategic approaches
3) Enhanced accountability
4) More effective fundraising
5) Enhanced and developed philanthropy
✔✔Professionalism - ✔✔1) Potential to diminish the volunteer experience
2) Disengage volunteers if not managed
3) Fundraisers focused more on their career development than on the needs of the NP
or donors
4) Continue to heighten the tensions surrounding compensation levels in the NP sector
5) Fundraising in NOT sales
✔✔Discernment Model - ✔✔1) Donor's interest becomes more important as the size of
the gift increases
2) Understanding donor's needs are critical
3) Supply side model focuses fundraising on the donor
,4) Demand side model focuses fundraising on the organization
5) Discernment model helps the donor decide on the organizational need to be
supported. Fundraisers listen and ask questions.
✔✔Rights (5) - ✔✔Right:
1) person
2) prospect
3) amount
4) cause
5) time
All steps focus on the donor
✔✔How is Philanthropy is present in all cultures? - ✔✔- role in building a civil society
- key motivators in the community
- richer traditions
- use of new techniques
✔✔How is philanthropy different in the US? - ✔✔1) more formal
2) more highly structured
3) a larger part of the economy than any other culture
✔✔What are the challenges of philanthropy? - ✔✔1) Creative partnerships dealing with
blurring of boundaries
2) balancing demand and supply side tensions
3) Engaging new types of volunteers
4) Redefining the profession and professional relationships
✔✔What is the philosophy of fundraising? - ✔✔Fundraising is the servant to
philanthropy and has been since the 17th century (means to an end).
✔✔What is means to an end wrt fundraising? - ✔✔1) Fundraising is guided by
mechanical forces but also moves toward a goal of self realization
2) Fundraising is never an end in itself
✔✔Fundraising - ✔✔1) should never be undertaken simply to raise funds
2) must serve the larger cause
3) is value based - values must guide the process
✔✔Claim v Earn - ✔✔An NP may claim the right to raise money by asking for a tax
deductible gift
BUT
An NP must earn the privilege to ask for a gift of support by:
1) its management's responsiveness to needs
2) the worthiness of the program
3) the stewardship of its governing board
,AN NP may assume the right to ask but the prospective donor is under no obligation to
give and must be respected for a yes or no answer.
✔✔Governance is... - ✔✔-an exercise in authority and control
✔✔Trustees, directors or regents - ✔✔1) are the primary stewards of the spirit of
philanthropy
2) hold the NPO in trust to ensure that it will continue to function according to the
dictates of its mission
3) the owners of the NP
4) hold the responsibility to define and interpret the mission
5) ensure that the organization will remain faithful to its mission
6) properly deploy resources and the accompanying actions
7) secure resources
8) serve as advocates, ambassadors and askers
✔✔A part of the whole - ✔✔1) FR projects the values of the total NP into the community
whenever it seeks gifts of support
2) All aspects of governance - admin, program and resource dev - are part of the whole
3) All elements must be part of the representation when gifts are sought
✔✔FR cannot function apart from - ✔✔1) the organization
2) its mission, goals objective and programs
3) a willingness to be held accountable for all its actions
✔✔Fundraising is - ✔✔1) and must always be the lengthened shadow of the NP entity,
reflecting the NP's dignity, its pride of accomplishment, and its commitment to service
2) FR by itself has no substance in the eyes and heart of the potential contributor
✔✔Gifts (4) - ✔✔1) Gift making is based on voluntary exchange
2) Gifts secured through coercion or through any means other than persuasion are not
gifts given freely nor have the meaning of philanthropy
3) Rarely gifts obtained under pressure or through any form of intimidation can be
repeated
4) Coercion is a legal matter
✔✔What is the giving process? - ✔✔1) Contributor offers a value to the non profit
2) Gift is made without any expectation of a material return, apart from the tax
deductibility
3) The reasons for the gift are manifold
✔✔Accepting Process - ✔✔Incumbent upon the organization to return a value to the
donor in the form other than material value
1) social recognition
2) satisfaction of supporting a worthy cause
, 3) a feeling of importance
4) a feeling of difference in resolving a problem
5) a sense of belonging
6) a sense of ownership in a program dedicated to serving the public good
✔✔Value of a gift - ✔✔1) misunderstanding of the value of a gift is often made and the
true meaning of the exchange relationship is violated by offering a return of substantive
value
2) misunderstanding alters the exchange, reduces the meaning of philanthropy, and
diminishes the gift
3) the transaction is one of material exchange, a self centered quid pro quo without the
spirit of philanthropy
✔✔No apologies please - ✔✔1) giving is a privilege, not a burden. Stewardship
nourishes the belief that people draw energy, a sense of self worth
2) Philanthropists see themselves as stewards of life's gifts to them
3) The person asking should not demean the ask by apologizing
4) There should always be joy in giving!
✔✔What is Ethical Fund Raising - ✔✔1) the push, the enabler, the activator of gift
making
2) the conscience to the process
3) fund raising is at its best when it matches the need of the NPO with the contributor's
need and desire to give
✔✔When is the practice of gift seeking justified? - ✔✔1) It exalts the contributor, not the
gift seeker
2) it is used as a responsible invitation, guiding contributors to make the kind of gift that
will meet their own special needs and add greater meaning to their lives
✔✔What is the privilege with respect to asking? - ✔✔1) An organization earns the
privilege to ask for fund by making a case for support
2) FR is the ongoing process of the interaction between the NPO and its public
3) Planning the appropriate interaction is critical for any program to be successful
✔✔How does planning begin? - ✔✔1) With a careful analysis of the NPO's strengths
and weaknesses that affect FR
2) It also considers threats and opportunities
3) how well a NPO delivers its services and modifies its programs in response to
changes in the environment impacts its FR success
✔✔How does the Case Statement begin? - ✔✔1) Who cares about us?
2) Why do we exist?
3) Understanding of their constituents
4) A strong mission statement supported by program globalization
