CFRE Flashcards

Which fundraising method typically yields the highest average gift size?

Answer: Planned giving and bequests

Planned gifts and bequests typically yield the largest average gift because donors contribute assets such as estates, trusts, or life insurance policies.

The 'moves management' system in major gift fundraising refers to:

Answer: A series of planned interactions to cultivate and steward donors

Moves management is a structured cultivation strategy involving intentional, planned interactions ('moves') designed to deepen a donor's relationship with the organization and increase giving.

A gift annuity is best described as:

Answer: A contract where a donor gives assets in exchange for fixed lifetime payments

A charitable gift annuity is a planned giving vehicle in which a donor transfers assets to a nonprofit in exchange for a fixed income stream for life, with the remainder benefiting the organization.

Under the CFRE Code of Ethical Principles, which action is expressly prohibited?

Answer: Receiving compensation based on a percentage of funds raised

Percentage-based compensation for fundraising is prohibited under AFP and CFRE ethical standards because it creates a conflict of interest and can distort fundraising priorities.

Which metric best measures the efficiency of a fundraising program?

Answer: Cost to raise a dollar (CTRD)

Cost to raise a dollar (CTRD) divides total fundraising expenses by total funds raised, providing a standard efficiency benchmark used by nonprofits and watchdog organizations.

A 'case for support' document primarily serves to:

Answer: Articulate why a donor should give to the organization

The case for support (or case statement) is a persuasive document that communicates the organization's mission, needs, and impact to inspire donor investment.

In prospect research, 'wealth screening' is used primarily to:

Answer: Identify potential donors' capacity to give major gifts

Wealth screening tools analyze publicly available data—such as real estate holdings, business affiliations, and stock ownership—to estimate a prospect's financial capacity for major giving.