CFRE Annual Giving and Direct Mail 2 — Questions and Answers
Question 1: Which strategy is most effective for upgrading mid-level annual fund donors to a higher giving level?
- Sending them the same mass appeal as all other donors
- Making a personal phone call with a tailored ask amount (Correct answer)
- Removing them from the direct mail program entirely
- Asking them to volunteer instead of donate
Correct answer: Making a personal phone call with a tailored ask amount
Personalized outreach such as a phone call with a specific ask amount tailored to the donor's capacity is the most effective upgrade strategy for mid-level donors.
Question 2: What is a 'control package' in direct mail fundraising?
- A mailing sent only to board members for internal review
- The proven appeal that currently outperforms all alternatives and serves as a benchmark (Correct answer)
- A package that controls postal costs through bulk rate
- A restricted use gift acknowledgment form
Correct answer: The proven appeal that currently outperforms all alternatives and serves as a benchmark
A control package is the current best-performing mail package against which all new test packages are measured.
Question 3: In an A/B split test for a direct mail appeal, what is the most important rule to follow?
- Change as many variables as possible to generate data quickly
- Test only one variable at a time to isolate its effect (Correct answer)
- Always test on a small random sample of the full list
- Use different ask amounts for each group tested
Correct answer: Test only one variable at a time to isolate its effect
Testing one variable at a time is the cardinal rule of A/B testing, ensuring that any difference in response can be attributed to the single changed element.
Question 4: What does a 'sustainer' or 'recurring donor' program offer a nonprofit organization?
- One-time large gifts that fund capital projects
- Predictable, steady revenue through automatically recurring gifts (Correct answer)
- Volunteer labor to support program activities
- Increased estate gift commitments
Correct answer: Predictable, steady revenue through automatically recurring gifts
Monthly or recurring donor programs provide predictable, sustainable revenue that reduces fundraising costs and improves donor retention rates.
Question 5: Which of the following best describes 'telefundraising' as a component of annual giving?
- Fundraising conducted exclusively through social media platforms
- Soliciting donors or prospects by telephone to secure or renew gifts (Correct answer)
- An automated email series triggered by donor actions
- Using text messages to send giving receipts
Correct answer: Soliciting donors or prospects by telephone to secure or renew gifts
Telefundraising involves trained callers contacting donors or prospects by phone to solicit, renew, or upgrade gifts, often used in conjunction with direct mail.
Question 6: What is the purpose of a 'gift acknowledgment' letter sent within 48 hours of receiving a donation?
- To request an additional gift immediately
- To thank the donor promptly and reinforce their positive decision to give (Correct answer)
- To provide a tax receipt only — no personal content is needed
- To inform the donor of upcoming events
Correct answer: To thank the donor promptly and reinforce their positive decision to give
Prompt acknowledgment reinforces the donor's giving decision, builds loyalty, and is a best practice in stewardship that supports future retention.
Question 7: What is the most common reason donors lapse (stop giving) to an organization?
- They switched to a competing nonprofit
- They were never properly thanked or felt unappreciated (Correct answer)
- They moved to a different geographic area
- They reduced their personal charitable budgets
Correct answer: They were never properly thanked or felt unappreciated
Studies consistently show that donors lapse most often because they felt unappreciated or undervalued — poor stewardship is the top driver of attrition.
CFRE Annual Giving and Direct Mail 2
Which strategy is most effective for upgrading mid-level annual fund donors to a higher giving level?