CFP CFP Prospect Research & Donor Stewardship 2 — Questions and Answers
Question 1: What is the goal of a donor stewardship program?
- To solicit donors as frequently as possible
- To thank, recognize, and engage donors in ways that build loyalty and encourage future giving (Correct answer)
- To collect donor data for wealth screening
- To train new fundraising staff
Correct answer: To thank, recognize, and engage donors in ways that build loyalty and encourage future giving
Stewardship builds long-term donor relationships by demonstrating gratitude, reporting on impact, and keeping donors meaningfully connected to the mission.
Question 2: According to best practices, within how many hours should a major donor receive a personal thank-you after making a significant gift?
- 72 hours
- One week
- 48 hours or less (Correct answer)
- One month
Correct answer: 48 hours or less
AFP best practices recommend acknowledging major gifts within 48 hours, ideally with a personal phone call from the CEO or board chair before a written receipt follows.
Question 3: What is a 'donor impact report' used for in stewardship?
- Listing all donors in the annual report
- Communicating to a donor how their specific gift was used and what difference it made (Correct answer)
- Reporting organizational financials to the board
- Screening new prospects for capacity
Correct answer: Communicating to a donor how their specific gift was used and what difference it made
A donor impact report closes the loop for the donor by showing measurable outcomes directly attributable to their gift, reinforcing confidence in the organization.
Question 4: What is the purpose of a 'donor recognition society'?
- To publicly list all donors regardless of gift size
- To acknowledge and cultivate donors who have given at cumulative or annual levels through exclusive benefits and recognition (Correct answer)
- To manage bequest notifications
- To register volunteers for special events
Correct answer: To acknowledge and cultivate donors who have given at cumulative or annual levels through exclusive benefits and recognition
Recognition societies (e.g., giving clubs) create a sense of community and belonging among donors at defined giving levels, encouraging increased giving and retention.
Question 5: What does 'donor retention rate' measure?
- The percentage of new donors acquired in a year
- The percentage of donors who gave in a prior year who also gave in the current year (Correct answer)
- The average gift size across all donors
- The number of donors who upgraded their giving level
Correct answer: The percentage of donors who gave in a prior year who also gave in the current year
Donor retention rate measures how well an organization keeps its existing donors, with industry averages typically around 40–45% for all donors and higher for major donors.
Question 6: Which of the following is considered the most cost-effective fundraising strategy?
- Acquiring new donors through direct mail
- Retaining and upgrading existing donors (Correct answer)
- Running large special events
- Pursuing corporate sponsorships exclusively
Correct answer: Retaining and upgrading existing donors
It costs significantly less to retain an existing donor than to acquire a new one, making stewardship and retention the most cost-effective fundraising investment.
CFP CFP Prospect Research & Donor Stewardship 2
What is the goal of a donor stewardship program?