CFRE UPDATED TEST PAPER QUESTIONS AND ANSWERS
SURE A+
✔✔board of directors - ✔✔Individuals selected (for example, by other directors or
members) in accordance with law (usually refl ected in bylaws) to establish policy and
oversee the management of an organization or institution.
✔✔book value - ✔✔The amount of an asset stated in a company' s records, not
necessarily the amount it could bring on the open market.
✔✔bricks and mortar - ✔✔Common manner of alluding to the physical plant needs of an
institution and to the campaigns designed to secure the necessary funds. A " bricks and
mortar campaign " is a campaign to raise building funds.
✔✔budget - ✔✔A detailed breakdown of estimated income and expenses for a
development program, prepared in advance. Budgets show various cost categories,
including personnel, printed materials, purchase and rental of equipment, offi ce
expense, headquarters, mailing charges, costs of events, and so on.
✔✔campaign - ✔✔An organized effort to raise funds for a nonprofi t organization.
✔✔campaign costs - ✔✔Expenditures that are deemed essential to the planning and
operation of a campaign and that are directly related to campaign budget projections.
✔✔campaign leadership - ✔✔Top volunteers who are an essential ingredient of any
campaign organization and one of the three major pedestals on which fundraising
success must rest, the others being the case and sources of support. Campaign leaders
provide and maintain the momentum and enthusiasm essential to the motivation of the
entire organization of volunteers.
✔✔campaign materials - ✔✔General term used to denote campaign forms of all kinds;
materials required for campaign workers, fact sheets, prospect lists, and numerous
other items essential to the effective functioning of a campaign; printed materials such
as brochures used to advance a campaign.
✔✔capital campaign - ✔✔A carefully organized, highly structured fundraising program
using volunteers supported by staff and consultants to raise funds for specifi c needs, to
be met in a specifi c time frame, with a specifi c dollar goal. Allows donors to pledge
gifts to be paid over a period of years.
✔✔case - ✔✔Carefully prepared reasons why a charitable institution merits support (in
the context of the " case bigger than the institution " ), including its resources, its
potential for greater service, its needs, and its future plans.
, ✔✔cash flow - ✔✔Predictable cash income to sustain operations; in capital campaigns
or whenever pledges are secured, anticipation of annual cash receipts resulting from
payments on pledges.
✔✔cash gift - ✔✔The simple transfer of cash, check, or currency (other than special
collections) to a gift - supported organization or institution.
✔✔cause related marketing - ✔✔An arrangement that links a product or service with a
social cause to provide the cause with a portion of the,rofi ts received by the
corporation.
✔✔certifi ed fundraising executive (CFRE) - ✔✔A credential granted to a fundraiser by
the Association of Fundraising Professionals, which is based on performance as a
fundraising executive, knowledge of the fundraising fi eld, tenure as a fundraiser
(minimum of fi ve years), education, and service to the profession.
✔✔challenge gift - ✔✔A substantial gift made on condition that other gifts must be
secured, either on a matching basis or some other prescribed formula, usually within a
specifi ed period, with the objective of stimulating fundraising activity generally.
✔✔charitable contribution - ✔✔A donation of something of value to a gift - supported
charitable organization, usually tax - deductible.
✔✔charitable deduction - ✔✔The value of money or property transferred to a 501(c)(3)
organization, deductible for income, gift, and estate tax purposes. In most cases, the
term charitable deduction refers to the portion of a gift that can be deducted from the
donor ' s income subject to federal income tax. A donor ' s charitable deduction should
not be confused or equated with the value of a gift; that is, gifts for the purpose of life
income agreements are not federally deductible at their full value.
✔✔charitable deferred gifts - ✔✔A gift made using any one of the following methods:
✔✔1. Wills: A charity may be named as benefi ciary under a will in many ways. These
include (a) gifts of specifi c property - ✔✔whether it is real property or personal property;
(b) a gift of a stated amount of money; and (c) a percentage of the remaining estate
after specifi c gifts are made. 2.Revocable Trusts: A revocable trust allows the grantor
to withdraw any or all assets during his or her lifetime, as well as having full enjoyment
of the property during his or her life. At death the assets can fl ow effi ciently to the
benefi ciaries, saving probate and administrative costs. A charity can be named as one
of the beneficiaries. 3. Irrevocable Trusts: Charitable Remainder Unitrusts and
Charitable Remainder Annuity Trusts. Although the principal of these trusts cannot be
withdrawn, there are additional benefits to the donor through immediate income tax
deductions and fund management. The donor will receive yearly income from the trust
as well as an immediate partial federal income tax deduction for the interest that
ultimately passes to the charity. 4. Charitable Gift Annuities: Involves a transfer of cash
SURE A+
✔✔board of directors - ✔✔Individuals selected (for example, by other directors or
members) in accordance with law (usually refl ected in bylaws) to establish policy and
oversee the management of an organization or institution.
✔✔book value - ✔✔The amount of an asset stated in a company' s records, not
necessarily the amount it could bring on the open market.
✔✔bricks and mortar - ✔✔Common manner of alluding to the physical plant needs of an
institution and to the campaigns designed to secure the necessary funds. A " bricks and
mortar campaign " is a campaign to raise building funds.
✔✔budget - ✔✔A detailed breakdown of estimated income and expenses for a
development program, prepared in advance. Budgets show various cost categories,
including personnel, printed materials, purchase and rental of equipment, offi ce
expense, headquarters, mailing charges, costs of events, and so on.
✔✔campaign - ✔✔An organized effort to raise funds for a nonprofi t organization.
✔✔campaign costs - ✔✔Expenditures that are deemed essential to the planning and
operation of a campaign and that are directly related to campaign budget projections.
✔✔campaign leadership - ✔✔Top volunteers who are an essential ingredient of any
campaign organization and one of the three major pedestals on which fundraising
success must rest, the others being the case and sources of support. Campaign leaders
provide and maintain the momentum and enthusiasm essential to the motivation of the
entire organization of volunteers.
✔✔campaign materials - ✔✔General term used to denote campaign forms of all kinds;
materials required for campaign workers, fact sheets, prospect lists, and numerous
other items essential to the effective functioning of a campaign; printed materials such
as brochures used to advance a campaign.
✔✔capital campaign - ✔✔A carefully organized, highly structured fundraising program
using volunteers supported by staff and consultants to raise funds for specifi c needs, to
be met in a specifi c time frame, with a specifi c dollar goal. Allows donors to pledge
gifts to be paid over a period of years.
✔✔case - ✔✔Carefully prepared reasons why a charitable institution merits support (in
the context of the " case bigger than the institution " ), including its resources, its
potential for greater service, its needs, and its future plans.
, ✔✔cash flow - ✔✔Predictable cash income to sustain operations; in capital campaigns
or whenever pledges are secured, anticipation of annual cash receipts resulting from
payments on pledges.
✔✔cash gift - ✔✔The simple transfer of cash, check, or currency (other than special
collections) to a gift - supported organization or institution.
✔✔cause related marketing - ✔✔An arrangement that links a product or service with a
social cause to provide the cause with a portion of the,rofi ts received by the
corporation.
✔✔certifi ed fundraising executive (CFRE) - ✔✔A credential granted to a fundraiser by
the Association of Fundraising Professionals, which is based on performance as a
fundraising executive, knowledge of the fundraising fi eld, tenure as a fundraiser
(minimum of fi ve years), education, and service to the profession.
✔✔challenge gift - ✔✔A substantial gift made on condition that other gifts must be
secured, either on a matching basis or some other prescribed formula, usually within a
specifi ed period, with the objective of stimulating fundraising activity generally.
✔✔charitable contribution - ✔✔A donation of something of value to a gift - supported
charitable organization, usually tax - deductible.
✔✔charitable deduction - ✔✔The value of money or property transferred to a 501(c)(3)
organization, deductible for income, gift, and estate tax purposes. In most cases, the
term charitable deduction refers to the portion of a gift that can be deducted from the
donor ' s income subject to federal income tax. A donor ' s charitable deduction should
not be confused or equated with the value of a gift; that is, gifts for the purpose of life
income agreements are not federally deductible at their full value.
✔✔charitable deferred gifts - ✔✔A gift made using any one of the following methods:
✔✔1. Wills: A charity may be named as benefi ciary under a will in many ways. These
include (a) gifts of specifi c property - ✔✔whether it is real property or personal property;
(b) a gift of a stated amount of money; and (c) a percentage of the remaining estate
after specifi c gifts are made. 2.Revocable Trusts: A revocable trust allows the grantor
to withdraw any or all assets during his or her lifetime, as well as having full enjoyment
of the property during his or her life. At death the assets can fl ow effi ciently to the
benefi ciaries, saving probate and administrative costs. A charity can be named as one
of the beneficiaries. 3. Irrevocable Trusts: Charitable Remainder Unitrusts and
Charitable Remainder Annuity Trusts. Although the principal of these trusts cannot be
withdrawn, there are additional benefits to the donor through immediate income tax
deductions and fund management. The donor will receive yearly income from the trust
as well as an immediate partial federal income tax deduction for the interest that
ultimately passes to the charity. 4. Charitable Gift Annuities: Involves a transfer of cash
