Practice Test Geeks(CNC) Certified Nonprofit Consultant Practice Test
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Fundraising & Resource Development Flashcards

7 cards from real CNC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Fundraising & Resource Development flashcards as text

  1. A donor-advised fund (DAF) is best described as which of the following?

    Answer: A philanthropic vehicle where donors make irrevocable contributions and recommend grants over time

    A DAF allows donors to make a tax-deductible contribution immediately, while retaining advisory privileges to recommend grants to charities over time.

  2. What is the 'Rule of Thirds' commonly applied to in capital campaign planning?

    Answer: Expecting one-third of the goal from the top 10 gifts, one-third from the next 100 gifts, and one-third from all remaining donors

    The Rule of Thirds describes the typical gift distribution in capital campaigns, underscoring how dependent success is on a small number of major donors.

  3. Which of the following is the MOST effective strategy for improving donor retention rates?

    Answer: Implementing a personalized stewardship program that reports impact to donors

    Personalized impact reporting makes donors feel their gifts matter, which is the leading driver of renewed giving and long-term loyalty.

  4. Which IRS form must a nonprofit file to substantiate non-cash charitable contributions valued over $500 by the donor?

    Answer: Form 8283

    IRS Form 8283 (Noncash Charitable Contributions) must be attached to the donor's tax return for non-cash gifts exceeding $500.

  5. What is 'RFM analysis' used for in nonprofit fundraising?

    Answer: Segmenting donors by Recency, Frequency, and Monetary value of their giving history

    RFM analysis segments donors based on how recently they gave, how often they give, and how much they give, enabling targeted and cost-effective outreach.

  6. Under the Fundraising Efficiency standard, what is the AFP benchmark for acceptable fundraising costs as a percentage of funds raised?

    Answer: No more than 35%

    The Better Business Bureau Wise Giving Alliance and AFP generally consider fundraising costs above 35% of total fundraising revenue to be a red flag for inefficiency.

  7. A nonprofit receives a $50,000 gift designated specifically for youth programming. How should this gift be classified?

    Answer: Net assets with donor restrictions

    Under ASC 958, gifts with donor-imposed conditions or restrictions are classified as net assets with donor restrictions until the restriction is met.