CFRE Fundraising Ethics and Accountability 2

Question 1

The concept of 'restricted vs. unrestricted gifts' is important in ethics because:

Accepted Answer

Organizations must honor donor restrictions and use gifts only as intended

Answer

Honoring donor restrictions is a fundamental ethical obligation; using a restricted gift for a different purpose violates the donor's intent and the organization's fiduciary duty.

Question 2

What is the ethical obligation of a fundraiser when a prospective donor appears to be making a gift under undue influence?

Accepted Answer

Pause the solicitation and take steps to ensure the donor is acting freely and competently

Answer

Fundraisers must ensure donors are acting of their own free will and are competent; proceeding when undue influence is suspected violates the donor's rights and the fundraiser's ethical duty.

Question 3

Which document must US nonprofit organizations file annually to maintain public accountability?

Accepted Answer

IRS Form 990

Answer

IRS Form 990 is the annual information return required of most US tax-exempt organizations and is publicly available, providing transparency to donors and the public.

Question 4

The term 'quid pro quo contribution' refers to a payment where:

Accepted Answer

The donor receives something of value in return for their contribution

Answer

A quid pro quo contribution is one where the donor receives goods or services in exchange for their gift; organizations must disclose the value of those benefits for tax purposes.

Question 5

Which ethical principle requires fundraisers to be honest about how funds will be used in a solicitation?

Accepted Answer

Truthfulness and honesty

Answer

Truthfulness and honesty require that fundraisers accurately represent the organization's programs and how donated funds will be allocated.

CFRE - Certified Fund Raising Executive Practice Test

CFRE - Certified Fund Raising Executive Practice Test

CFRE Fundraising Ethics and Accountability 2