CFRE Annual Giving and Direct Mail

Question 1

What is the primary purpose of an annual fund in a nonprofit organization?

Accepted Answer

To provide a broad base of unrestricted operating support from many donors

Answer

To fund only capital construction projects

Answer

To secure planned gifts from wealthy individuals

Answer

To fund endowment growth exclusively

Question 2

Which metric best measures the effectiveness of a direct mail acquisition campaign?

Accepted Answer

Cost per dollar raised (CPDR)

Answer

Average gift size

Answer

Response rate

Answer

Total gross revenue

Question 3

In direct mail fundraising, what does 'RFM' stand for?

Accepted Answer

Recency, Frequency, Monetary value

Answer

Response, Frequency, Market

Answer

Reach, Frequency, Message

Answer

Response, Fulfillment, Management

Question 4

What is the typical response rate range for a direct mail renewal letter sent to lapsed donors?

Accepted Answer

2% to 5%

Answer

0.5% to 1%

Answer

10% to 15%

Answer

20% to 30%

Question 5

Which element of a direct mail appeal package has the greatest impact on response rate?

Accepted Answer

The list and offer

Answer

The reply device design

Answer

The outer envelope teaser copy

Answer

The postage class used

Question 6

A donor who has given every year for 5 or more consecutive years is typically categorized as which type of donor?

Accepted Answer

Loyal or consecutive donor

Answer

Major donor

Answer

Lapsed donor

Answer

Prospect

Question 7

What is 'donor attrition' in the context of annual giving?

Accepted Answer

The percentage of donors who do not renew their gift in a subsequent year

Answer

The increase in average gift size year over year

Answer

The cost of acquiring new donors through direct mail

Answer

The process of moving donors to major gift portfolios