CED CED Fundraising & Development 2

Question 1

Which IRS form must most nonprofits file annually that includes fundraising revenue disclosures?

Accepted Answer

Form 990

Answer

The IRS Form 990 is an annual information return that discloses an organization's revenue, expenses, and program accomplishments, including fundraising totals.

Question 2

What is a 'capital campaign'?

Accepted Answer

An intensive fundraising effort to raise a specified sum for a major project or facility

Answer

Capital campaigns are time-limited, goal-oriented efforts typically aimed at funding building projects, endowments, or major program expansions.

Question 3

What is the '80/20 rule' as commonly applied in nonprofit fundraising?

Accepted Answer

80% of donations come from 20% of donors

Answer

The Pareto Principle in fundraising reflects that a small segment of major donors typically accounts for the vast majority of contributed revenue.

Question 4

What is 'donor stewardship'?

Accepted Answer

The ongoing process of thanking, recognizing, and reporting to donors after gifts are received

Answer

Effective donor stewardship builds trust and loyalty, increasing the likelihood of future gifts and improving overall donor retention.

Question 5

A 'lead gift' in a capital campaign typically represents what portion of the campaign goal?

Accepted Answer

10-20% of the total goal from a single donor or family

Answer

Lead gifts set the pace and tone for a capital campaign and often represent a transformational commitment from a top prospect.

(CED) Certified Executive Director Practice Test

(CED) Certified Executive Director Practice Test

CED CED Fundraising & Development 2