CNC Fundraising & Resource Development 2 — Questions and Answers
Question 1: Which fundraising model uses a tiered structure to categorize donors by giving level, with the smallest number of donors at the top giving the most?
- Donor pyramid (Correct answer)
- Concentric circle model
- Moves management grid
- Prospect heat map
Correct answer: Donor pyramid
The donor pyramid organizes donors in tiers from broad base (small gifts) to narrow apex (major gifts), reflecting that fewer donors give larger amounts.
Question 2: A nonprofit's 'case for support' should primarily accomplish which of the following?
- List the organization's financial statements
- Articulate the compelling reason why donors should invest in the mission (Correct answer)
- Describe the board composition and governance structure
- Outline the executive director's credentials
Correct answer: Articulate the compelling reason why donors should invest in the mission
The case for support is a persuasive document that communicates the urgency and impact of the nonprofit's work to motivate donors to give.
Question 3: In moves management, what is the primary purpose of a 'cultivation move'?
- Soliciting an immediate gift from a prospect
- Deepening the prospect's relationship with and interest in the organization (Correct answer)
- Processing a received donation through the database
- Acknowledging a gift with a thank-you letter
Correct answer: Deepening the prospect's relationship with and interest in the organization
Cultivation moves are intentional touchpoints designed to build the prospect's connection and affinity before a solicitation is made.
Question 4: Which giving vehicle allows a donor to make a charitable contribution and receive an income stream during their lifetime, with the remainder passing to the nonprofit?
- Donor-advised fund
- Charitable remainder trust (Correct answer)
- Endowment gift
- Restricted operating gift
Correct answer: Charitable remainder trust
A charitable remainder trust (CRT) provides the donor with income payments during their lifetime while irrevocably transferring the remainder to the nonprofit at death.
Question 5: What is the standard recommended timeframe for sending a donor acknowledgment letter after receiving a gift?
- Within 30 days
- Within 48 hours (Correct answer)
- Within one week
- Within two weeks
Correct answer: Within 48 hours
Best practice calls for acknowledging gifts within 48 hours to reinforce the donor's positive decision and begin the stewardship cycle.
Question 6: When a foundation requires a 'Letter of Inquiry' (LOI) before a full proposal, what is the LOI's function?
- It serves as the legal grant agreement
- It is a brief summary to gauge whether the project fits the funder's priorities (Correct answer)
- It requests an in-person meeting with program officers
- It certifies the nonprofit's 501(c)(3) status
Correct answer: It is a brief summary to gauge whether the project fits the funder's priorities
An LOI is a concise preliminary document that lets funders quickly assess alignment with their priorities before inviting a full proposal.
Question 7: Which metric best measures a fundraising program's efficiency?
- Total number of donors
- Cost to raise a dollar (CTRD) (Correct answer)
- Average gift size
- Donor age demographics
Correct answer: Cost to raise a dollar (CTRD)
Cost to raise a dollar (CTRD) measures how much the organization spends to generate each dollar raised, allowing meaningful program efficiency comparisons.
CNC Fundraising & Resource Development 2
Which fundraising model uses a tiered structure to categorize donors by giving level, with the smallest number of donors at the top giving the most?