CFRE LATEST EXAMS ACTUAL QUESTIONS AND ANSWERS
SURE A+
✔✔Benefits & Costs re MG ask - ✔✔When soliciting MGs, it is important to understand
the benefits and costs to each donor in the giving opportunity.
✔✔What are the four parts to a MG ask? - ✔✔1. warm up
2. the ask
3. the response
4. the close
✔✔How to determine the amount to ask a donor? - ✔✔determine by the donor's
maximum capacity level
✔✔What is appropriate to do after a no? - ✔✔Send a brief note to that for the visit and
indicate that you will keep the donor abreast of the NPO's work
✔✔Who is in the prospect pool? - ✔✔1. Expect - a donor who has already given
2. Prospect - a donor who has already given and is ready to be cultivated at a higher
level
3. Suspect - Individuals who have the means to give
✔✔What are the 4 steps of the AG program - ✔✔1. Identify
2. Inform
3. Involve
4. Invest
✔✔How to meet objective of the AG program? - ✔✔1. Develop a strategy of action
2. determine projects to which prospects are assigned
3. ID the prospect with the right groups
4. Assign the right people to cultivate the prospect
5. establish a time schedule for implementation of the cultivation and solicitation
program
✔✔What are the elements of Appreciation? - ✔✔Thank them:
accurately, promptly, publicly, privately, frequently, appropriately, innovatively, gratefully
✔✔What happens before a capital campaign? - ✔✔NPO undertakes a planning study to
determine the campaign's likeliness for success
✔✔What are the two primary features of the feasibility study? - ✔✔1. An exam of the
NPO's readiness
2. The constituent's readiness
✔✔What else is in a feasibility study? - ✔✔The goals and objectives
,✔✔Prerequisites for success of a capital campaign - ✔✔1. Commitments of time and
support from all key participants
2. Clear NPO self image, strategic plan for growth and improvement
3. FRing objectives based on plans, goals, budgets and needs
4. Compelling case statement
5. Assessment of development program, market survey of internal and external
preparedness
6. Enlistment and education of volunteer leaders
7. Ability and readiness of Major donors to give substantial gifts before the public
announcement
8. Competent staff and external professional counsel
9. Adequate/liberal funds for expenses
10. Consideration of other factors that determine size of goal, timing in length and
starting date
✔✔What are the forms of Capital Campaigns? - ✔✔1. historical - building
2. comprehensive - program, building & endowment
3. single purpose - program
4. continuing major gifts
✔✔What factors influence a Capital campaign? - ✔✔1. Quality of strategic planning
2. The development program's maturity and sophistication
3. Development staff's experience and ability
4. Availability of leadership for the campaign
5. Impressiveness of case
6. Potential of major donor prospects
7. Range and scope of the campaign effort
✔✔What are the three essential steps of the Capital Campaign? - ✔✔1. Strategic
planning and its impact
2. The purpose and organization of the market survey
3.The use of a development program assessment to determine institutional readiness
✔✔What is the most expensive cost per dollar raised? - ✔✔Acquiring a new donor (7x)
✔✔When does donor fatigue occur? - ✔✔When donors receive too much solicitation
from the NPO
✔✔What is the volunteer ratio? - ✔✔The accepted ratio of solicitations assigned to a
volunteer is 5 to 1.
✔✔What is the major reason that a donor decides not to make a major gift when asked?
- ✔✔When the organizational leadership fails to establish trust
, ✔✔What is a cause related marketing relationship? - ✔✔When a company seeks
increased sales and new markets by establishing a relationship with the NPO.
✔✔What are cause marketing benefits? - ✔✔1. Differentiates the company
2. Increases customer loyalty
3. Builds business while building the community
4. Increases social responsibility
5. Increases sales
6. develops new customers
7. Allows targeting of specific customers
8. Enhances corporate image
9. develops employee citizenship & improves employee relations
10. Generates positive media coverage
11. Raises funds and increases contributions
✔✔What are the NPO potential benefits of cause related marketing? - ✔✔1. Increased
revenue
2. Enhanced public presence
3. Widens exposure for the mission and cause
4. Increases the involvement of people in the community, region, nation
5. develops new donors and leaders
✔✔What is the most important element in designing a cause related marketing
program? - ✔✔Determining how the NPOs names will be used
✔✔What is the most important element when promoting the cause related marketing
program? - ✔✔To communicate to the corporation how the NPO will use its funds
✔✔How are Giving Circles most effective? - ✔✔for cultivating and upgrading current
donors
✔✔What should be included in determining a donor's net worth? - ✔✔Life insurance
✔✔What are the donor benefits of a life income plan? - ✔✔1. Charitable deduction of
gift value
2. Life income
3. Reduction or avoidance of capital gains tax
4. Reduction of estate tax
✔✔What is a donor benefit of an outright gift of appreciated property? - ✔✔Reduction of
estate tax
✔✔How should a donor gift depreciated stock?
SURE A+
✔✔Benefits & Costs re MG ask - ✔✔When soliciting MGs, it is important to understand
the benefits and costs to each donor in the giving opportunity.
✔✔What are the four parts to a MG ask? - ✔✔1. warm up
2. the ask
3. the response
4. the close
✔✔How to determine the amount to ask a donor? - ✔✔determine by the donor's
maximum capacity level
✔✔What is appropriate to do after a no? - ✔✔Send a brief note to that for the visit and
indicate that you will keep the donor abreast of the NPO's work
✔✔Who is in the prospect pool? - ✔✔1. Expect - a donor who has already given
2. Prospect - a donor who has already given and is ready to be cultivated at a higher
level
3. Suspect - Individuals who have the means to give
✔✔What are the 4 steps of the AG program - ✔✔1. Identify
2. Inform
3. Involve
4. Invest
✔✔How to meet objective of the AG program? - ✔✔1. Develop a strategy of action
2. determine projects to which prospects are assigned
3. ID the prospect with the right groups
4. Assign the right people to cultivate the prospect
5. establish a time schedule for implementation of the cultivation and solicitation
program
✔✔What are the elements of Appreciation? - ✔✔Thank them:
accurately, promptly, publicly, privately, frequently, appropriately, innovatively, gratefully
✔✔What happens before a capital campaign? - ✔✔NPO undertakes a planning study to
determine the campaign's likeliness for success
✔✔What are the two primary features of the feasibility study? - ✔✔1. An exam of the
NPO's readiness
2. The constituent's readiness
✔✔What else is in a feasibility study? - ✔✔The goals and objectives
,✔✔Prerequisites for success of a capital campaign - ✔✔1. Commitments of time and
support from all key participants
2. Clear NPO self image, strategic plan for growth and improvement
3. FRing objectives based on plans, goals, budgets and needs
4. Compelling case statement
5. Assessment of development program, market survey of internal and external
preparedness
6. Enlistment and education of volunteer leaders
7. Ability and readiness of Major donors to give substantial gifts before the public
announcement
8. Competent staff and external professional counsel
9. Adequate/liberal funds for expenses
10. Consideration of other factors that determine size of goal, timing in length and
starting date
✔✔What are the forms of Capital Campaigns? - ✔✔1. historical - building
2. comprehensive - program, building & endowment
3. single purpose - program
4. continuing major gifts
✔✔What factors influence a Capital campaign? - ✔✔1. Quality of strategic planning
2. The development program's maturity and sophistication
3. Development staff's experience and ability
4. Availability of leadership for the campaign
5. Impressiveness of case
6. Potential of major donor prospects
7. Range and scope of the campaign effort
✔✔What are the three essential steps of the Capital Campaign? - ✔✔1. Strategic
planning and its impact
2. The purpose and organization of the market survey
3.The use of a development program assessment to determine institutional readiness
✔✔What is the most expensive cost per dollar raised? - ✔✔Acquiring a new donor (7x)
✔✔When does donor fatigue occur? - ✔✔When donors receive too much solicitation
from the NPO
✔✔What is the volunteer ratio? - ✔✔The accepted ratio of solicitations assigned to a
volunteer is 5 to 1.
✔✔What is the major reason that a donor decides not to make a major gift when asked?
- ✔✔When the organizational leadership fails to establish trust
, ✔✔What is a cause related marketing relationship? - ✔✔When a company seeks
increased sales and new markets by establishing a relationship with the NPO.
✔✔What are cause marketing benefits? - ✔✔1. Differentiates the company
2. Increases customer loyalty
3. Builds business while building the community
4. Increases social responsibility
5. Increases sales
6. develops new customers
7. Allows targeting of specific customers
8. Enhances corporate image
9. develops employee citizenship & improves employee relations
10. Generates positive media coverage
11. Raises funds and increases contributions
✔✔What are the NPO potential benefits of cause related marketing? - ✔✔1. Increased
revenue
2. Enhanced public presence
3. Widens exposure for the mission and cause
4. Increases the involvement of people in the community, region, nation
5. develops new donors and leaders
✔✔What is the most important element in designing a cause related marketing
program? - ✔✔Determining how the NPOs names will be used
✔✔What is the most important element when promoting the cause related marketing
program? - ✔✔To communicate to the corporation how the NPO will use its funds
✔✔How are Giving Circles most effective? - ✔✔for cultivating and upgrading current
donors
✔✔What should be included in determining a donor's net worth? - ✔✔Life insurance
✔✔What are the donor benefits of a life income plan? - ✔✔1. Charitable deduction of
gift value
2. Life income
3. Reduction or avoidance of capital gains tax
4. Reduction of estate tax
✔✔What is a donor benefit of an outright gift of appreciated property? - ✔✔Reduction of
estate tax
✔✔How should a donor gift depreciated stock?
