CFRE Flashcards

Which type of charitable trust pays income to the organization first, with the remainder going to heirs?

Answer: Charitable lead trust (CLT)

A charitable lead trust (CLT) distributes income to the nonprofit for a set term, after which the remaining assets pass to the donor's heirs, making it attractive for estate planning.

An organization's 'donor bill of rights' primarily serves to:

Answer: Assure donors they will be treated with respect and their gifts used as intended

The Donor Bill of Rights, developed by AFP and CASE, articulates the rights donors have to information, transparency, and respectful treatment from charitable organizations.

In grant writing, a logic model is used to:

Answer: Visually connect program inputs, activities, outputs, and outcomes

A logic model is a planning and evaluation tool that maps the relationships between a program's resources, activities, outputs, and intended short- and long-term outcomes for funders.

The 'recency, frequency, monetary' (RFM) analysis in fundraising is used to:

Answer: Score and segment donors based on how recently, how often, and how much they have given

RFM scoring ranks donors by how recently they gave (recency), how often they give (frequency), and the total amount they have given (monetary value) to prioritize outreach.

Which solicitation channel typically produces the best donor retention rates?

Answer: Personal face-to-face solicitation

Personal, face-to-face solicitation consistently produces the highest retention rates because of the relational connection it creates, though it is also the most resource-intensive channel.

A nonprofit board member's 'give or get' policy means the board member is expected to:

Answer: Either make a personal gift or help secure gifts from others totaling a set amount

A 'give or get' policy requires each board member to either donate personally at a minimum level or leverage their networks to secure equivalent contributions from others.

When a donor designates a gift to a specific program and that program is discontinued, the organization should:

Answer: Contact the donor to discuss redirecting the gift to a related purpose

Ethical and legal stewardship requires the organization to contact the donor and seek their guidance on redirecting a restricted gift when the original designated purpose no longer exists.