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

The annual fund provides broad-based unrestricted operating support, allowing the organization flexibility to meet day-to-day expenses and programmatic needs.

Question 2

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

Accepted Answer

Cost per dollar raised (CPDR)

Answer

Cost per dollar raised (CPDR) measures how efficiently acquisition spending converts to revenue, making it the most comprehensive effectiveness metric.

Question 3

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

Accepted Answer

Recency, Frequency, Monetary value

Answer

RFM (Recency, Frequency, Monetary value) is a segmentation model that ranks donors based on when they last gave, how often they give, and the size of their gifts.

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

Lapsed donor reactivation mailings typically achieve 2%–5% response rates, higher than cold acquisition but lower than active donor renewal.

Question 5

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

Accepted Answer

The list and offer

Answer

Research consistently shows that the mailing list quality and the strength of the offer (the ask) have the greatest influence on response rate.

CFRE - Certified Fund Raising Executive Practice Test

CFRE - Certified Fund Raising Executive Practice Test

CFRE Annual Giving and Direct Mail