CFRE CFRE 3

Question 1

The 'pyramid of giving' model suggests that an organization should:

Accepted Answer

Build a broad base of small donors and cultivate them toward larger gifts over time

Answer

The donor pyramid illustrates that organizations need a large base of annual fund donors from which to identify, cultivate, and upgrade prospects to major and planned gifts.

Question 2

Which type of foundation is established by an individual or family and funded primarily from a single source?

Accepted Answer

Private foundation

Answer

A private foundation is typically established and controlled by an individual, family, or corporation and is funded primarily from a single source rather than public contributions.

Question 3

The IRS requires nonprofits to provide a written acknowledgment for any single cash donation of:

Accepted Answer

$250 or more

Answer

Under IRS regulations, nonprofits must provide written acknowledgment (a receipt) for any single cash contribution of $250 or more so the donor can claim a charitable deduction.

Question 4

A 'challenge grant' in fundraising is designed to:

Accepted Answer

Motivate additional giving by matching new gifts up to a set amount

Answer

A challenge grant motivates donors to give by having a lead donor or foundation agree to match new contributions dollar-for-dollar (or at another ratio) up to a specified total.

Question 5

Donor retention rate is calculated by dividing:

Accepted Answer

Number of donors who gave last year who also gave this year by total donors from last year

Answer

Retention rate = (donors retained from prior year ÷ total donors in prior year) × 100, measuring how well an organization keeps its existing donors year over year.

CFRE - Certified Fund Raising Executive Practice Test

CFRE - Certified Fund Raising Executive Practice Test

CFRE CFRE 3