CNE Major Gift & Capital Campaigns 3 — Questions and Answers
Question 1: Which ratio best indicates a healthy return on investment for a mature major gifts program?
- $1 raised for every $1 spent
- $3 raised for every $1 spent
- $10 raised for every $1 spent (Correct answer)
- $25 raised for every $1 spent
Correct answer: $10 raised for every $1 spent
A well-run major gifts program typically achieves a 10:1 return, though ratios vary by organization size and donor maturity.
Question 2: A donor offers to give $250,000 to a capital campaign but stipulates it must be matched dollar-for-dollar. This type of gift is called a:
- Pledge gift
- Challenge grant (Correct answer)
- Bridge loan
- Restricted endowment
Correct answer: Challenge grant
A challenge grant motivates other donors to give by promising to match contributions up to a set amount within a defined period.
Question 3: When a capital campaign extends beyond its original timeline, what is the most common cause?
- Insufficient marketing materials
- Underestimating the number of prospects needed in the pipeline (Correct answer)
- Over-reliance on online crowdfunding
- Board members making too many asks
Correct answer: Underestimating the number of prospects needed in the pipeline
Campaigns stall when the prospect pool is too small relative to the goal, leaving too few qualified donors to close the remaining gap.
Question 4: A nonprofit executive director makes a major gift solicitation call without a volunteer or board member present. What risk does this create?
- The ask will be too large
- The donor may feel the organization lacks broad community support (Correct answer)
- The gift cannot be legally accepted
- The pledge agreement will be unenforceable
Correct answer: The donor may feel the organization lacks broad community support
Peer-to-peer solicitation is more persuasive; staff-only asks can signal weak volunteer engagement and reduce donor confidence.
Question 5: Which document formally commits a donor to fulfilling a multi-year capital campaign gift?
- A gift acknowledgment letter
- An MOU (Memorandum of Understanding)
- A pledge card or pledge agreement (Correct answer)
- A board resolution
Correct answer: A pledge card or pledge agreement
A signed pledge card or pledge agreement documents the donor's commitment, payment schedule, and any gift restrictions.
Question 6: A capital campaign's 'case for support' should primarily communicate:
- The organization's financial deficit and urgent need for operating funds
- Why the project matters to the community and how the donor's gift makes a difference (Correct answer)
- Detailed architectural plans and construction timelines
- The biographies of all board members involved
Correct answer: Why the project matters to the community and how the donor's gift makes a difference
The case for support articulates the community need, the organization's solution, and the impact of the donor's investment.
Question 7: What is 'prospect research' primarily used for in major gift fundraising?
- Identifying prospects' political affiliations for targeted messaging
- Assessing a prospect's financial capacity, philanthropic interests, and linkage to the organization (Correct answer)
- Tracking website traffic from high-net-worth zip codes
- Benchmarking salaries of development staff against peer organizations
Correct answer: Assessing a prospect's financial capacity, philanthropic interests, and linkage to the organization
Prospect research evaluates capacity (wealth), affinity (passion for the cause), and linkage (relationship to the org) to prioritize cultivation efforts.
CNE Major Gift & Capital Campaigns 3
Which ratio best indicates a healthy return on investment for a mature major gifts program?