CFRE Major Gifts and Planned Giving 2 — Questions and Answers
Question 1: In major gift fundraising, a 'discovery visit' is primarily used to:
- Ask for a specific gift amount on the first contact
- Learn about the prospect's interests, connection to the mission, and philanthropic capacity before crafting a solicitation strategy (Correct answer)
- Conduct a background financial investigation of the prospect
- Deliver a formal gift proposal document
Correct answer: Learn about the prospect's interests, connection to the mission, and philanthropic capacity before crafting a solicitation strategy
A discovery visit is an early cultivation meeting designed to learn about the prospect's motivations, interests, and alignment with the organization before any solicitation is made.
Question 2: What is 'capacity' in the context of major gift prospect research?
- The donor's ability to volunteer time
- The estimated financial ability of a prospect to make a significant charitable gift (Correct answer)
- The organization's capacity to manage a capital campaign
- The size of the organization's prospect database
Correct answer: The estimated financial ability of a prospect to make a significant charitable gift
In prospect research, capacity refers to the estimated wealth and financial ability of a prospective donor to make a major gift, assessed through public records, wealth screening, and other sources.
Question 3: Which of the following best describes 'philanthropic inclination' in prospect research?
- The donor's annual income level
- The likelihood that the prospect is motivated to give charitably based on past giving history, interests, and values (Correct answer)
- The donor's legal capacity to enter a gift agreement
- The prospect's willingness to volunteer at events
Correct answer: The likelihood that the prospect is motivated to give charitably based on past giving history, interests, and values
Philanthropic inclination (or affinity) measures how likely a prospect is to give charitably, based on their demonstrated giving history, values, and personal connection to a cause.
Question 4: A 'major gift proposal' should be tailored to the donor primarily because:
- It is legally required for gifts above a certain threshold
- It demonstrates that the organization understands the donor's specific interests and connects the gift to outcomes they care about (Correct answer)
- It allows the organization to control how the gift is used
- Generic proposals are forbidden by AFP standards
Correct answer: It demonstrates that the organization understands the donor's specific interests and connects the gift to outcomes they care about
Tailored proposals resonate because they reflect the donor's specific values and interests, showing that the organization listened during cultivation and connecting the gift to outcomes the donor personally cares about.
Question 5: What is 'blended giving' in a major gift context?
- Combining cash gifts with in-kind donations
- Combining an outright current gift with a planned gift commitment to maximize total impact and donor benefit (Correct answer)
- Blending gifts from multiple family members into one record
- Mixing annual fund and event revenue in one gift report
Correct answer: Combining an outright current gift with a planned gift commitment to maximize total impact and donor benefit
Blended giving combines a donor's current outright gift with a planned (legacy) gift commitment, allowing donors to make a significant current impact while also leaving a lasting legacy.
Question 6: Which of the following describes a 'pooled income fund'?
- A fund where all donors give anonymously to a shared general fund
- A planned giving vehicle where multiple donors contribute assets to a fund, receive proportionate income for life, and the remainder passes to the charity (Correct answer)
- An investment account managed by the board's finance committee
- A matching grant fund contributed to by multiple corporate sponsors
Correct answer: A planned giving vehicle where multiple donors contribute assets to a fund, receive proportionate income for life, and the remainder passes to the charity
A pooled income fund pools contributions from multiple donors; each donor receives a proportionate share of fund income for their lifetime, and upon death, their share of the fund passes to the designated charity.
CFRE Major Gifts and Planned Giving 2
In major gift fundraising, a 'discovery visit' is primarily used to: