CFRE CORE EXAM 2026 SET QUESTIONS AND ANSWERS
SURE A+
✔✔leadership gift - ✔✔Normally, the second tier of gifts to a campaign that will inspire
extraordinary giving by subsequent donors.
✔✔legacy - ✔✔A disposition in a will of personal property. A demonstrative legacy is a
legacy payable primarily out of a specifi c fund. A specific legacy is a legacy of a
particular article or specifi ed part of the estate.
✔✔letter of inquiry - ✔✔A letter sent by an organization to a foundation or corporation
presenting a project for which funding is being sought and asking the foundation or
corporation if they will consider funding the project or receiving a full proposal.
✔✔letter of intent - ✔✔A pledge form stated in less formal, nonlegalistic terms for use
by potential donors who view the pledge card as a contract and refuse to commit
themselves to multiple - year gift payments because of this contractual aspect.
✔✔LIA principle - ✔✔The fundraising axiom of separating advocates and askers from
donors on the basis of Linkage, Involvement, and Advocacy.
✔✔life income gift - ✔✔An irrevocable gift of cash, securities, or real estate to a gift -
supported organization, with the donor receiving income from the donated assets for a
period of time through an annuity or trust arrangement for him - or herself or other
benefi ciaries.
✔✔life income pooled trusts - ✔✔A charitable remainder trust that holds the
commingled irrevocable gifts of donors who receive income annually based on the
earnings of the trust and their individual entitlement as participants. On termination of an
income interest, the underlying property is transferred to a charitable organization or
institution.
✔✔life insurance gifts - ✔✔The irrevocable assignment of a life insurance policy for
charitable disposition for which the present value is fully tax - deductible, as are the
premiums paid by the donor.
✔✔life interest - ✔✔An interest or claim that does not amount to ownership and that is
held only for the duration of the life of the person to whom the interest is given or for the
duration of the life of another person; an interest in property for life.
✔✔LYBUNTS - ✔✔Acronym for donors who gave " last year but not this " year.
✔✔major gifts - ✔✔A gift of signifi cant amount (size of gift may vary according to
organization ' s needs and goals); may be repeated periodically. Also a program
designation.
, ✔✔market - ✔✔Potential source of funds, members, or clients (individuals and
organizations).
✔✔matching gift - ✔✔A gift that is made on condition that it be matched within a certain
period, either on a one - to - one basis or in accordance with some other formula; also a
gift by a corporation matching a gift by one of its employees.
✔✔memorial - ✔✔Gift made to perpetuate the memory of an individual. Memorial
should not be confused with a gift to honor a living person.
✔✔mission - ✔✔A philosophical or value statement that seeks to respond to the " why "
of the organization ' s existence, its basic reason for being. Mission statement is not defi
ned in expressions of goals or objectives.
✔✔needs - ✔✔In fundraising terms, refers specifi cally to the institution ' s dollar
requirements that can constitute objectives for an intensive campaign or for a continuing
fund development program, as follows: 1. Capital: Building or property needs, in the
form of new construction, additions, expansion, or remodeling or acquisition of property.
Sometimes related to equipment purchase or to raising funds for an addition to
endowment capital. 2. Endowment: Funds required to add to the invested principal or
corpus with only income used for sustaining funds, special project support, and so on. 3.
Program: Annual support for the operational budget; funds required to supplement
income through revenues to sustain operation of the agency or institution. 4. Project:
Refers to program activity or small equipment acquisition. 5. Validated: Needs that have
been identifi ed, analyzed, and approved by management and by the governing body
and other volunteers as being valid and appropriate to the functioning of the institution.
✔✔nonprofit (or not - for - profi t) organization - ✔✔Organizations of members or
volunteers, classifi ed by the Internal Revenue Service as providing a public benefi t
without purpose of profi t for members of the corporation.
✔✔NSFRE (now AFP) - ✔✔National Society of Fund Raising Executives (formerly; now
Association of Fundraising Professionals).
✔✔operating foundation - ✔✔A fund or endowment designated by the Internal Revenue
Service as a private foundation, yet which differs from a typical private foundation in that
its primary purpose is to conduct research, promote social welfare, or engage in other
programs determined by its governing body or establishment charter. It may make some
grants, but the sum is generally small relative to the funds used for the foundation ' s
own programs.
✔✔outright gift - ✔✔The simple transfer of gift property to the donee without any
conditions or terms of trust.
SURE A+
✔✔leadership gift - ✔✔Normally, the second tier of gifts to a campaign that will inspire
extraordinary giving by subsequent donors.
✔✔legacy - ✔✔A disposition in a will of personal property. A demonstrative legacy is a
legacy payable primarily out of a specifi c fund. A specific legacy is a legacy of a
particular article or specifi ed part of the estate.
✔✔letter of inquiry - ✔✔A letter sent by an organization to a foundation or corporation
presenting a project for which funding is being sought and asking the foundation or
corporation if they will consider funding the project or receiving a full proposal.
✔✔letter of intent - ✔✔A pledge form stated in less formal, nonlegalistic terms for use
by potential donors who view the pledge card as a contract and refuse to commit
themselves to multiple - year gift payments because of this contractual aspect.
✔✔LIA principle - ✔✔The fundraising axiom of separating advocates and askers from
donors on the basis of Linkage, Involvement, and Advocacy.
✔✔life income gift - ✔✔An irrevocable gift of cash, securities, or real estate to a gift -
supported organization, with the donor receiving income from the donated assets for a
period of time through an annuity or trust arrangement for him - or herself or other
benefi ciaries.
✔✔life income pooled trusts - ✔✔A charitable remainder trust that holds the
commingled irrevocable gifts of donors who receive income annually based on the
earnings of the trust and their individual entitlement as participants. On termination of an
income interest, the underlying property is transferred to a charitable organization or
institution.
✔✔life insurance gifts - ✔✔The irrevocable assignment of a life insurance policy for
charitable disposition for which the present value is fully tax - deductible, as are the
premiums paid by the donor.
✔✔life interest - ✔✔An interest or claim that does not amount to ownership and that is
held only for the duration of the life of the person to whom the interest is given or for the
duration of the life of another person; an interest in property for life.
✔✔LYBUNTS - ✔✔Acronym for donors who gave " last year but not this " year.
✔✔major gifts - ✔✔A gift of signifi cant amount (size of gift may vary according to
organization ' s needs and goals); may be repeated periodically. Also a program
designation.
, ✔✔market - ✔✔Potential source of funds, members, or clients (individuals and
organizations).
✔✔matching gift - ✔✔A gift that is made on condition that it be matched within a certain
period, either on a one - to - one basis or in accordance with some other formula; also a
gift by a corporation matching a gift by one of its employees.
✔✔memorial - ✔✔Gift made to perpetuate the memory of an individual. Memorial
should not be confused with a gift to honor a living person.
✔✔mission - ✔✔A philosophical or value statement that seeks to respond to the " why "
of the organization ' s existence, its basic reason for being. Mission statement is not defi
ned in expressions of goals or objectives.
✔✔needs - ✔✔In fundraising terms, refers specifi cally to the institution ' s dollar
requirements that can constitute objectives for an intensive campaign or for a continuing
fund development program, as follows: 1. Capital: Building or property needs, in the
form of new construction, additions, expansion, or remodeling or acquisition of property.
Sometimes related to equipment purchase or to raising funds for an addition to
endowment capital. 2. Endowment: Funds required to add to the invested principal or
corpus with only income used for sustaining funds, special project support, and so on. 3.
Program: Annual support for the operational budget; funds required to supplement
income through revenues to sustain operation of the agency or institution. 4. Project:
Refers to program activity or small equipment acquisition. 5. Validated: Needs that have
been identifi ed, analyzed, and approved by management and by the governing body
and other volunteers as being valid and appropriate to the functioning of the institution.
✔✔nonprofit (or not - for - profi t) organization - ✔✔Organizations of members or
volunteers, classifi ed by the Internal Revenue Service as providing a public benefi t
without purpose of profi t for members of the corporation.
✔✔NSFRE (now AFP) - ✔✔National Society of Fund Raising Executives (formerly; now
Association of Fundraising Professionals).
✔✔operating foundation - ✔✔A fund or endowment designated by the Internal Revenue
Service as a private foundation, yet which differs from a typical private foundation in that
its primary purpose is to conduct research, promote social welfare, or engage in other
programs determined by its governing body or establishment charter. It may make some
grants, but the sum is generally small relative to the funds used for the foundation ' s
own programs.
✔✔outright gift - ✔✔The simple transfer of gift property to the donee without any
conditions or terms of trust.
