Free CFRE Questions and Answers — Questions and Answers
Question 1: The deadline for delivering direct mail letters to a post office for mailing. <br> <br> The Answer is Book Value
- True
- False (Correct answer)
Correct answer: False
Book value refers to the value of an asset as recorded on a company's balance sheet, typically its historical cost less depreciation. This financial accounting term has no relation to the logistical deadline for delivering direct mail letters to a post office. The statement incorrectly links a financial concept to a mailing deadline, making it false.
Question 2: Expenditures that are directly tied to campaign budget forecasts and are judged necessary for the organization and planning of a campaign.
- campaign leadership
- campaign costs (Correct answer)
- circuit courts
- campaign expenses
Correct answer: campaign costs
Campaign costs are the expenditures directly associated with the planning, organization, and execution of a fundraising campaign. These costs are budgeted and deemed necessary for the campaign's efficient operation and success. They encompass various expenses, from promotional materials to administrative overhead, all aimed at achieving fundraising goals.
Question 3: Giving to charity organizations results in tax savings on income, gifts, and estates.
- foreign market opportunities
- tax benefits (Correct answer)
- donor recognition
- cash gift
Correct answer: tax benefits
Tax benefits refer to the financial advantages, such as deductions or credits, that donors receive on their income, gift, or estate taxes when contributing to qualified charitable organizations. These benefits are designed to incentivize philanthropy by reducing a donor's overall tax liability. They are a significant motivator for many charitable gifts.
Question 4: A gift that is restricted or commemorative and is intended for a certain use.
- unrestricted gift
- gift annuity
- big gifts
- designated gift (Correct answer)
Correct answer: designated gift
A designated gift, also known as a restricted gift, is a donation made with specific instructions from the donor regarding its intended use. The donor specifies the purpose, program, or project for which the funds are to be used, and the organization is legally obligated to adhere to these restrictions. This ensures the gift supports a particular area important to the donor.
Question 5: Abbreviation for "last year but not this year" donors.
- Lybunts (Correct answer)
- Support Services
- Planned Giving
- Feasibility Study
Correct answer: Lybunts
LYBUNT is a common acronym in fundraising that stands for 'Last Year But Unfortunately Not This Year.' It categorizes donors who made a contribution in the previous year but have not yet given in the current year. Identifying LYBUNT donors is crucial for targeted re-engagement strategies to encourage renewed support.
Question 6: A document that is sent to donors (together with copies going to the campaign's and organization's or institution's proper officials), either individually or as an attachment with an acknowledgement, officially thanking them for their support.
- A store credit
- Major Gifts
- Gift / present
- Gift receipt (Correct answer)
Correct answer: Gift receipt
A gift receipt is a formal document provided to donors to acknowledge their contribution and serve as proof of donation for tax purposes. It typically includes details like the donor's name, gift amount, date, and the organization's tax-exempt status. Beyond its legal function, it also acts as an important stewardship tool, expressing gratitude and reinforcing donor relations.
Question 7: Campaign forms of every kind are referred to by this general phrase, as are the supplies needed for campaign workers, fact sheets, prospect lists, and a variety of other things crucial to the efficient operation of a campaign, as well as printed materials like brochures used to advance a campaign.
- Social media
- Big gifts
- Campaign materials (Correct answer)
- Campaign costs
Correct answer: Campaign materials
Campaign materials is a comprehensive term that refers to all the resources, documents, and supplies essential for the effective planning, execution, and promotion of a fundraising campaign. This includes a wide range of items such as brochures, forms, fact sheets, prospect lists, and other printed or digital assets. These materials are crucial for informing donors, guiding staff, and ensuring the campaign's smooth operation.
Free CFRE Questions and Answers
The deadline for delivering direct mail letters to a post office for mailing.
The Answer is Book Value