FREE CFRE Questions and Answers

Question 1

The deadline for delivering direct mail letters to a post office for mailing.

The Answer is Book Value

Accepted Answer

False

Answer

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.

Accepted Answer

campaign costs

Answer

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.

Accepted Answer

tax benefits

Answer

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.

Accepted Answer

designated gift

Answer

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.

Accepted Answer

Lybunts

Answer

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.

CFRE - Certified Fund Raising Executive Practice Test

CFRE - Certified Fund Raising Executive Practice Test

FREE CFRE Questions and Answers