CFRE MCQ 4 — Questions and Answers
Question 1: When writing a direct mail appeal letter, the 'Johnson Box' refers to:
- The return address block in the upper left corner
- A highlighted summary statement placed above the salutation to capture reader attention (Correct answer)
- The postscript at the end of the letter
- The donor recognition box included in the reply device
Correct answer: A highlighted summary statement placed above the salutation to capture reader attention
The Johnson Box is a highlighted or boxed summary statement at the top of a direct mail letter, above the salutation, designed to immediately engage the reader.
Question 2: In grant writing, a 'logic model' is used primarily to:
- Calculate the cost-benefit ratio of a program
- Visually map the relationships between a program's inputs, activities, outputs, and outcomes (Correct answer)
- Justify the organization's overhead costs to funders
- Outline the organizational chart for the grant project
Correct answer: Visually map the relationships between a program's inputs, activities, outputs, and outcomes
A logic model visually represents how a program's resources and activities are expected to lead to desired outputs and outcomes, demonstrating program theory to funders.
Question 3: A donor establishes a $100,000 endowment with a 5% annual spending policy. What is the expected annual distribution to the organization?
- $1,000
- $5,000 (Correct answer)
- $10,000
- $20,000
Correct answer: $5,000
A 5% annual spending policy on a $100,000 endowment yields $5,000 per year ($100,000 × 0.05 = $5,000).
Question 4: Which fundraising principle states that people give to people — meaning the relationship between the asker and the prospect is often more important than the organization itself?
- The case for support principle
- The peer-to-peer solicitation principle (Correct answer)
- The donor-centered fundraising principle
- The propensity-to-give principle
Correct answer: The peer-to-peer solicitation principle
Peer-to-peer solicitation is grounded in the principle that a personal ask from a trusted peer or friend is more effective than an organizational solicitation.
Question 5: Under the Donor Bill of Rights, donors have the right to:
- Receive a percentage of funds raised in their name
- Expect that all relationships with the organization will be conducted with confidentiality and respect (Correct answer)
- Direct how all organizational operating expenses are spent
- Require the organization to match their gift from general funds
Correct answer: Expect that all relationships with the organization will be conducted with confidentiality and respect
The Donor Bill of Rights guarantees that donor relationships will be conducted with confidentiality, honesty, and respect — fundamental rights to protect donor trust.
Question 6: A fundraiser discovers that a longtime donor's capacity has dramatically increased following an inheritance. What is the most appropriate next step?
- Immediately send a major gift solicitation letter
- Update the donor's prospect rating and develop a personalized cultivation strategy before soliciting (Correct answer)
- Remove the donor from the annual fund and transfer them to a major gift portfolio without notification
- Alert board members to solicit the donor at the next event
Correct answer: Update the donor's prospect rating and develop a personalized cultivation strategy before soliciting
When a donor's capacity increases, the appropriate step is to update their rating and develop a thoughtful, individualized cultivation plan before making a new ask.
Question 7: What is the primary purpose of a 'case for support' in fundraising?
- To provide a legal justification for the organization's tax-exempt status
- To articulate why the organization deserves philanthropic investment and what impact the donor's gift will achieve (Correct answer)
- To outline staff compensation and administrative budget needs
- To document the history of the organization's founding
Correct answer: To articulate why the organization deserves philanthropic investment and what impact the donor's gift will achieve
The case for support compellingly communicates the organization's mission, the urgent need it addresses, and the transformational impact donor investment will make.
CFRE MCQ 4
When writing a direct mail appeal letter, the 'Johnson Box' refers to: