CFRE CFRE 2

Question 1

Which fundraising method typically yields the highest average gift size?

Accepted Answer

Planned giving and bequests

Answer

Planned gifts and bequests typically yield the largest average gift because donors contribute assets such as estates, trusts, or life insurance policies.

Question 2

The 'moves management' system in major gift fundraising refers to:

Accepted Answer

A series of planned interactions to cultivate and steward donors

Answer

Moves management is a structured cultivation strategy involving intentional, planned interactions ('moves') designed to deepen a donor's relationship with the organization and increase giving.

Question 3

A gift annuity is best described as:

Accepted Answer

A contract where a donor gives assets in exchange for fixed lifetime payments

Answer

A charitable gift annuity is a planned giving vehicle in which a donor transfers assets to a nonprofit in exchange for a fixed income stream for life, with the remainder benefiting the organization.

Question 4

Under the CFRE Code of Ethical Principles, which action is expressly prohibited?

Accepted Answer

Receiving compensation based on a percentage of funds raised

Answer

Percentage-based compensation for fundraising is prohibited under AFP and CFRE ethical standards because it creates a conflict of interest and can distort fundraising priorities.

Question 5

Which metric best measures the efficiency of a fundraising program?

Accepted Answer

Cost to raise a dollar (CTRD)

Answer

Cost to raise a dollar (CTRD) divides total fundraising expenses by total funds raised, providing a standard efficiency benchmark used by nonprofits and watchdog organizations.

CFRE - Certified Fund Raising Executive Practice Test

CFRE - Certified Fund Raising Executive Practice Test

CFRE CFRE 2