CFRE Annual Giving and Direct Mail 3

Question 1

What is 'donor lifetime value' (LTV) and why is it important in annual giving programs?

Accepted Answer

The projected total revenue a donor will contribute over their entire relationship with the organization

Answer

The total assets a donor has available for charitable giving

Answer

The number of years a donor has been on the mailing list

Answer

The maximum gift amount a donor has ever made

Question 2

Which of the following is considered a best practice for direct mail copy in a fundraising appeal?

Accepted Answer

Writing in a personal, conversational tone with a clear, specific ask

Answer

Using complex vocabulary to convey organizational expertise

Answer

Focusing primarily on organizational history and mission statistics

Answer

Keeping the letter to a single paragraph for modern readers

Question 3

What is the purpose of list segmentation in a direct mail annual fund program?

Accepted Answer

To tailor messages and ask amounts to different groups based on their giving history

Answer

To reduce the total number of donors receiving mail

Answer

To separate restricted gifts from unrestricted gifts in accounting

Answer

To identify donors eligible for planned giving only

Question 4

A nonprofit's annual fund raised $200,000 from 1,000 donors last year. This year it raised $210,000 from 950 donors. What is the most accurate assessment?

Accepted Answer

The program has a concerning donor retention problem despite revenue growth

Answer

The program is growing because total revenue increased

Answer

The program is declining because donor count fell

Answer

The program is stable and no changes are needed

Question 5

What does the term 'upgrade' refer to in annual fund fundraising?

Accepted Answer

Asking a current donor to give more than their previous gift amount

Answer

Switching a donor from paper mail to electronic communications

Answer

Moving a donor from annual giving to a planned gift

Answer

Improving the quality of the direct mail package design

Question 6

Which of the following is a key advantage of email solicitation compared to direct mail in an annual fund program?

Accepted Answer

Email has lower cost per contact and allows rapid deployment and testing

Answer

Email achieves higher response rates than direct mail

Answer

Email donors give significantly larger gifts than direct mail donors

Answer

Email is more effective for acquiring first-time donors

Question 7

What is a 'matching gift' program and how does it benefit annual giving?

Accepted Answer

A corporate program where employer matches employee charitable donations, effectively doubling the impact

Answer

An event where donors are matched with volunteer opportunities

Answer

A challenge grant restricted to capital campaigns only

Answer

A process where donors exchange gifts with each other