Nonprofit Fundraising and Development 2

Question 1

What is a planned gift (legacy gift) in nonprofit fundraising?

Accepted Answer

A donation arranged as part of a donor's estate plan, such as a bequest or charitable trust

Answer

Planned gifts are charitable contributions arranged during a donor's lifetime but often realized upon death, including bequests, charitable remainder trusts, and gift annuities.

Question 2

What is a challenge grant in nonprofit fundraising?

Accepted Answer

A conditional gift where a donor pledges funds only if the organization raises a matching amount from others

Answer

A challenge grant motivates other donors to give by offering to match contributions up to a set amount, creating urgency and a sense of community investment.

Question 3

What is a giving society in nonprofit development?

Accepted Answer

A donor recognition program that acknowledges contributors at various gift levels

Answer

A giving society recognizes and cultivates donors who give at specific levels, fostering community and providing incentives for donors to increase their giving.

Question 4

What does LYBUNT stand for in fundraising analytics?

Accepted Answer

Last Year But Unfortunately Not This year — donors who gave last year but not in the current year

Answer

LYBUNT identifies lapsed donors who gave in the prior year but have not yet given this year, making them a top re-solicitation priority.

Question 5

What is the role of a Development Director in a nonprofit?

Accepted Answer

To lead and manage all fundraising and donor relations activities to secure the organization's financial support

Answer

The Development Director is the chief fundraiser responsible for designing and executing strategies to build relationships and raise contributed revenue.

Nonprofit Practice Test

Nonprofit Practice Test

Nonprofit Fundraising and Development 2