CFRE CFRE 5

Question 1

Which type of charitable trust pays income to the organization first, with the remainder going to heirs?

Accepted Answer

Charitable lead trust (CLT)

Answer

A charitable lead trust (CLT) distributes income to the nonprofit for a set term, after which the remaining assets pass to the donor's heirs, making it attractive for estate planning.

Question 2

An organization's 'donor bill of rights' primarily serves to:

Accepted Answer

Assure donors they will be treated with respect and their gifts used as intended

Answer

The Donor Bill of Rights, developed by AFP and CASE, articulates the rights donors have to information, transparency, and respectful treatment from charitable organizations.

Question 3

In grant writing, a logic model is used to:

Accepted Answer

Visually connect program inputs, activities, outputs, and outcomes

Answer

A logic model is a planning and evaluation tool that maps the relationships between a program's resources, activities, outputs, and intended short- and long-term outcomes for funders.

Question 4

The 'recency, frequency, monetary' (RFM) analysis in fundraising is used to:

Accepted Answer

Score and segment donors based on how recently, how often, and how much they have given

Answer

RFM scoring ranks donors by how recently they gave (recency), how often they give (frequency), and the total amount they have given (monetary value) to prioritize outreach.

Question 5

Which solicitation channel typically produces the best donor retention rates?

Accepted Answer

Personal face-to-face solicitation

Answer

Personal, face-to-face solicitation consistently produces the highest retention rates because of the relational connection it creates, though it is also the most resource-intensive channel.

CFRE - Certified Fund Raising Executive Practice Test

CFRE - Certified Fund Raising Executive Practice Test

CFRE CFRE 5