CFRE Fundraising Ethics and Accountability 1 — Questions and Answers
Question 1: The AFP Code of Ethical Standards requires fundraisers to disclose which of the following?
- The names of all major donors
- Conflicts of interest that could affect professional judgment (Correct answer)
- The salaries of all fundraising staff
- Internal board meeting minutes
Correct answer: Conflicts of interest that could affect professional judgment
The AFP Code requires professionals to disclose actual or apparent conflicts of interest to avoid compromising their professional judgment or organizational integrity.
Question 2: Which compensation arrangement is considered unethical by the AFP Code of Ethical Standards?
- A base salary plus performance bonus tied to organizational metrics
- Percentage-based compensation tied directly to the amount of funds raised (Correct answer)
- Hourly consulting fees for campaign planning
- Annual salary with a cost-of-living increase
Correct answer: Percentage-based compensation tied directly to the amount of funds raised
Percentage-based compensation for fundraisers is considered unethical because it can incentivize coercive solicitation and undermine donor trust.
Question 3: What does 'donor bill of rights' primarily protect?
- The organization's right to keep donor information confidential
- Donors' rights to be informed, treated with respect, and have their gifts used as intended (Correct answer)
- Fundraisers' rights to commission-based pay
- Volunteers' rights in fundraising campaigns
Correct answer: Donors' rights to be informed, treated with respect, and have their gifts used as intended
The Donor Bill of Rights ensures donors can expect transparency, respect, and accountability from the charitable organizations they support.
Question 4: Under AFP ethical standards, a fundraiser who learns of illegal activity within their organization should:
- Ignore it to protect organizational reputation
- Report it through appropriate channels, which may include legal authorities (Correct answer)
- Only disclose it after leaving the organization
- Keep it confidential as part of professional loyalty
Correct answer: Report it through appropriate channels, which may include legal authorities
AFP ethics standards require fundraisers to report illegal activities through proper channels to uphold accountability and protect the public trust.
Question 5: Which principle underpins the concept of 'philanthropic freedom'?
- Organizations can restrict donor giving to specific programs only
- Donors have the right to make charitable gifts to any legal organization without coercion (Correct answer)
- Governments should control how charitable funds are distributed
- Fundraisers must approve all gifts before they are accepted
Correct answer: Donors have the right to make charitable gifts to any legal organization without coercion
Philanthropic freedom holds that donors have the fundamental right to support causes of their own choosing without undue pressure or manipulation.
Question 6: A fundraiser is offered a personal gift (e.g., tickets to a sporting event) by a donor. According to AFP standards, what should the fundraiser do?
- Accept the gift as a reward for good relationship-building
- Decline or disclose the gift according to organizational policy to avoid a conflict of interest (Correct answer)
- Accept only if the value is under $50
- Accept the gift privately and not disclose it
Correct answer: Decline or disclose the gift according to organizational policy to avoid a conflict of interest
AFP standards require fundraisers to avoid personal enrichment from donor relationships; gifts should be declined or disclosed per organizational policy to prevent conflicts of interest.
CFRE Fundraising Ethics and Accountability 1
The AFP Code of Ethical Standards requires fundraisers to disclose which of the following?