Nonprofit Fundraising and Development 3

Question 1

What is a grant proposal?

Accepted Answer

A written request to a foundation or government agency for funding to support specific programs or projects

Answer

A grant proposal is a formal document submitted to a funder that outlines the organization's needs, plans, qualifications, and expected outcomes.

Question 2

What is a corporate sponsorship in nonprofit fundraising?

Accepted Answer

A mutually beneficial arrangement where a business provides financial support in exchange for recognition and marketing benefits

Answer

Corporate sponsorships differ from charitable gifts because businesses receive tangible benefits like logo placement and event recognition in exchange for their support.

Question 3

What is a cultivation strategy in major gift fundraising?

Accepted Answer

A planned series of personalized interactions designed to build a relationship with a prospective donor before solicitation

Answer

Cultivation involves engaging prospects with meaningful experiences and information about the organization's impact before making a gift ask.

Question 4

What is a donor retention rate?

Accepted Answer

The percentage of donors who gave in the prior year who also gave in the current year

Answer

Donor retention rate measures how well an organization keeps its existing donors, which directly impacts long-term fundraising sustainability.

Question 5

What is peer-to-peer fundraising?

Accepted Answer

A model where supporters raise money on behalf of an organization by soliciting their own networks

Answer

Peer-to-peer fundraising leverages existing supporters as ambassadors who create personal fundraising pages and solicit their friends and family.

Nonprofit Practice Test

Nonprofit Practice Test

Nonprofit Fundraising and Development 3