CFP Annual Giving Programs & Direct Response 3

Question 1

What is the concept of 'donor upgrading' in annual giving programs?

Accepted Answer

Encouraging existing donors to increase their gift amount over their prior year's contribution

Answer

Moving donors from digital to direct mail communication channels

Answer

Transferring annual donors directly into planned giving conversations

Answer

Updating donor database records with current contact information

Question 2

Which of the following is the best practice for determining the 'ask amount' when soliciting a renewing annual donor?

Accepted Answer

Ask for 10–20% more than the donor's last gift to encourage a modest upgrade

Answer

Always ask for exactly the same amount as the prior year's gift

Answer

Ask for a fixed amount based solely on the organization's funding needs

Answer

Use the average gift of all donors in the same ZIP code as the ask amount

Question 3

What is a 'mid-level giving' program in the context of annual fund management?

Accepted Answer

A bridge program for donors giving between the general annual fund floor and the major gift threshold

Answer

A program for donors who have given for exactly five consecutive years

Answer

A corporate matching gift program for medium-sized businesses

Answer

A restricted fund for donors who contribute to specific programs only

Question 4

Which of the following is the most effective method to reactivate lapsed annual donors?

Accepted Answer

Send a personalized appeal acknowledging their past support and inviting them to reconnect

Answer

Remove lapsed donors from all communications to avoid negative associations

Answer

Only contact lapsed donors after five or more years of non-giving

Answer

Transfer all lapsed donors immediately to the major gifts program

Question 5

What is 'acquisition cost per donor' and why is it significant?

Accepted Answer

The total cost to recruit one new donor, used to evaluate acquisition campaign ROI against lifetime donor value

Answer

The database maintenance cost per record, used to evaluate CRM system efficiency

Answer

The legal cost of gift acceptance agreements, used to measure compliance expenses

Answer

The average cost of recognition gifts, used to budget the stewardship program

Question 6

In annual giving, what does 'attrition' refer to?

Accepted Answer

The loss of donors from one year to the next who do not renew their gifts

Answer

The process of recognizing donors who have given for multiple consecutive years

Answer

The reduction in average gift size across the annual fund donor base

Answer

The transfer of donors from the annual fund to planned giving conversations

Question 7

Which of the following best describes a 'peer-to-peer' fundraising campaign?

Accepted Answer

A strategy where existing supporters are empowered to solicit their personal networks on behalf of the organization

Answer

A campaign where two nonprofits collaborate jointly to raise funds for a shared cause

Answer

A matching gift program pairing corporate and individual donors dollar-for-dollar

Answer

An internal fundraising competition between staff departments within a nonprofit