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

Donor upgrading refers to strategies designed to encourage existing annual fund donors to increase their gift size beyond their previous year's gift.

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

Best practice is to ask for a modest upgrade of 10–20% above the donor's last gift, which is psychologically achievable and gradually moves donors toward higher giving levels.

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 mid-level giving program bridges the gap between the general annual fund and the major gifts program, typically targeting donors giving $1,000–$25,000 annually with more personalized attention.

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

A personalized reactivation appeal that acknowledges the donor's past support and shares impact stories is the most effective strategy for reengaging lapsed donors.

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

Acquisition cost per donor is the total cost of an acquisition campaign divided by new donors gained, and is critical for evaluating whether the long-term value of those donors justifies the investment.

CFP - Certified Fundraising Professional Practice Test

CFP - Certified Fundraising Professional Practice Test

CFP Annual Giving Programs & Direct Response 3