CNC Fundraising & Resource Development 3

Question 1

In a capital campaign, what is the 'quiet phase' typically characterized by?

Accepted Answer

Soliciting lead and major gifts before public announcement

Answer

The quiet phase focuses on securing 50–70% of the campaign goal from top donors before announcing the campaign publicly to build momentum and credibility.

Question 2

What does 'LYBUNT' mean in nonprofit donor database terminology?

Accepted Answer

Last Year But Unfortunately Not This year

Answer

LYBUNT identifies donors who gave last year but have not yet given this year, making them a priority re-engagement segment.

Question 3

A nonprofit hosting a fundraising gala charges $200 per ticket, and each ticket costs $75 to fulfill. A donor pays $200. What is the tax-deductible portion of their ticket purchase?

Accepted Answer

$125

Answer

The deductible portion is the amount paid minus the fair market value of goods/services received; $200 – $75 = $125.

Question 4

Which type of corporate giving involves a company donating a percentage of product sales to a nonprofit partner?

Accepted Answer

Cause-related marketing

Answer

Cause-related marketing ties corporate revenue from sales directly to charitable donations, benefiting both the company's brand and the nonprofit.

Question 5

What is the primary ethical concern with 'commission-based' fundraising compensation?

Accepted Answer

It can incentivize aggressive tactics that compromise donor relationships and integrity

Answer

AFP's Code of Ethical Standards prohibits commission-based compensation because it can pressure fundraisers to prioritize short-term revenue over donor-centered relationships.

(CNC) Certified Nonprofit Consultant Practice Test

(CNC) Certified Nonprofit Consultant Practice Test

CNC Fundraising & Resource Development 3