CFRE Practice Flashcards
1
Q
The percentage of recipients that proceeded to make a gift or take an action as a result of a physical mailing or telephone solicitation
A
Response Rates
2
Q
Ongoing fundraising training.
A
Professional Development
3
Q
A series of activities to maintain and deepen relationships and engagement with donors, prospective donors, and volunteers.
A
Cultivation
4
Q
The future-looking declaration of the organization’s intended destination.
A
Vision statement
5
Q
The practice of advising or training a younger or less experienced colleague.
A
Professional mentoring
6
Q
A gift category that includes stocks, commodities, mutual funds, and bonds.
A
Securities
7
Q
An individual who has been evaluated based on donor research and found to have a connection to the organization, the ability to give an appropriate level, and an interest in the organization’s mission.
A
Prospect
8
Q
A commitment to give a specific amount of money monthly, quarterly, or annually for a set number of months and/or years. While typically used in capital campaigns, it is also used in major gift fundraising and in the annual fund.
A
Pledges and installments
9
Q
The investment of either cash or in-kind goods or services by a business entity in return for access and recognition at an event or cause
A
Corporate sponsorships
10
Q
The expectation of how a gift will be used and what outcomes may be expected from the use of the gift.
A
Donor intent
11
Q
The statistical data of a population, including age, income, education, political affiliation, marital and family status, etc.
A
Demographics
12
Q
The legal vehicles or agreement that define how and when a donation will be transferred and used.
A
Gift instruments
13
Q
An organization created for the benefit of the community or to meet societal needs.
A
Public Trust
14
Q
The connections a donor or prospective donor has to your organization and/or its mission. These could be in the form of experience (former alum, program participant), connections with people (friend, relative, colleagues), shared values (advocacy, stage of life), and personal history.
A
Linkage
15
Q
Any donation of real estate. Examples include homes, farmland, commercial property, and undeveloped land.
A
Gifts of property
16
Q
The creation and implementation of a system of recording and thanking givers that is accurate and timely.
A
Donor recognition
17
Q
The process of allowing the public access to information that sheds light on an organization’s stewardship of gifts, program outcomes, and daily operations.
A
Transparency
18
Q
Donations of cash, investment funds, or property to an organization for the purpose of investing the principle while using the dividends or other resulting investment income for charitable purposes
A
Endowment gifts
19
Q
The process of grouping donors and prospective donors into like categories in order to more efficiently allocate resources and target appeals.
A
Segmentation
20
Q
Accepted best practices and ethical codes of conduct of a sector.
A
Professional standards
21
Q
An expectation to adhere to legal obligations, mission, stewardship of resources, and development.
A
Board member roles and responsibilities
22
Q
A best practice that establishes what types of donations your organization is willing to accept and provides an explanation for donors on what is acceptable.
A
Gift acceptance policy
23
Q
The process of gathering, organizing, and interpreting data regarding donor and prospective donor preferences, attitudes, interests, and giving ability.
A
Market research
24
Q
The process of collecting, researching, analyzing and segmenting information about donors, prospective donors, and volunteers.
A
Data mining
25
An assessment of a nonprofit’s level of resolve, capacity, and infrastructure necessary to accept and implement a significant change or project.
Organizational readiness
26
A review of the revenue, expenditures, program results and general state of the organization for the previous 12 months.
Annual report
27
An assessment of the financial capacity, stage of life, and the liquidity of a donor's assets.
Ability
28
When a company provides dollars to a nonprofit organization in direct proportion to the number of individual purchases of the company’s product or services during a defined period of time.
Cause marketing
29
The sum total of a donor’s giving records. This includes frequency, renewal rate, appeal responses, average gift, highest gift, most recent gift, etc.
Giving history
30
An item of items of value given with a solicitation or promised as a result of a gift. After a decline in popularity with direct mail, these are making a comeback with crowdfunding campaigns and often incentivize giving.
Premium
31
The process of acclimating new people to the organization, its culture, and their roles and expectations.
Volunteer orientation (board members)
32
Maintaining secure digital records and fully disclosing any sharing of information with third party organizations upon the acceptance of an individual’s information.
Data privacy
33
A donor data point that is calculated by dividing the total dollars raised by the number of gifts given.
Average gift
34
A concise record of an individual’s linkage, ability, and interest in an organization. It contains verified contact info, giving history, and wealth indicators
Donor profile
35
Mission, goals, tactics, budget, and timeline.
Elements of a fundraising plan
36
A formal arrangement between a donor and the recipient which spells out the nature of the donation, how it is to be used, and how the donation will be acknowledged.
Gift agreement
37
A value system in the recruiting process that demonstrates variety in viewpoints, ethnicity, gender, socioeconomic levels, age, etc.
Volunteer diversity (board members)
38
The most common tool used to exhibit transparency and detail stewardship.
Annual report
39
The accuracy and consistency of stored statistical information. It is typically confirmed by the absence of discrepancies between two instances or updates of a data record.
Data integrity
40
A mission statement, goals, objectives, description of programs and services, finances, governance structure, staffing and organization chart, facilities and service delivery description, planning and evaluation, and organizational history.
Elements of an effective case
41
Any function designed to attract, involve, and inform people about a cause or organization.
Special event
42
The percentage of donors who make a subsequent gift to the organization.
Renewal rates
43
An ongoing effort to learn about your donors, communicate with them, and offer shared experiences (volunteering, events, etc.).
Engagement
44
The sum total of expenses related to development efforts. These include salaries, payroll taxes and benefits, supplies, marketing and advertising, occupancy costs, and other expenses related to development.
Cost of fundraising
45
How often a donor gives, and to which repeated appeals.
Frequency
46
A brief definition of the purpose of an organization, who it serves, and how it will carry out that service.
Mission statement
47
A charitable contribution designated or intended for the purchase and/or construction of a new building or property, or the improvement and/or renovation of an existing building, property or physical space.
Capital gift
48
A legal vehicle in which one party gives a second party permission to manage assets for the benefit of an organization.
Trust
49
A system where pre-tax deductions are made from an employee’s paycheck and donated directly to a nonprofit organization
Payroll giving
50
The articulation of the purpose of an organization, including who it serves, the implied community need, and how the organization meets that need.
Mission statement
51
Donations of tangible goods and services as opposed to the funds to purchase those same goods or services.
Gifts in kind
52
The percentage of board members that remain engaged both during and after their terms end.
Volunteer retention rate
53
A calculation of the expenses related to fundraising in proportion to the revenue produced.
Cost per dollar raised
54
Physical materials such as letters, flyers, catalogs, etc. that are delivered via mail or physically given to prospects & donors.
Direct marketing
55
The process of opening oneself and the organization to scrutiny, voluntary external review, and feedback from stakeholders.
Accountability
56
The routine assessment of outcomes and results for a program or individual employee in order to evaluate their impact and effectiveness.
Performance measurement
57
The process of thanking and recognizing an individual for their donation. Timely recognition within 48 hours is a key component of donor retention and repeat giving.
Acknowledging gifts
58
An organizational framework for how gifts will be used in accordance with donor wishes and how that use will be reported back to the donor.
Stewardship plans
59
Individuals whose income and/or assets put them in a position to make substantial donations to an organization and are currently serving in some capacity.
High net worth volunteers
60
The ongoing process of assessing linkage, ability, and interest of your donors in order to match them with the right program, appeal, and amount.
Donor qualifying
61
The sum total of applying transparency, accountability, and the Donor Bill of Rights to all aspects of fundraising.
Ethical fundraising
62
When an individual personally raises money directly from their friends, network or co-workers for a specific organization or cause. The organization may control the payment platform and/or support for the messaging however, the individual controls when, where, and to whom the messages are delivered.
Peer-to-peer fundraising
63
Prevailing local and regional laws and rules that determine how gifts are solicited and used.
Legal standards
64
Amount of revenue generated for a given strategy divided by the expenses required to generate that revenue.
ROI
65
A group that provides some level of oversight and guidance to a nonprofit organization but lacks the legal fiduciary obligations of a governing body.
Advisory board
66
The combination of concern, excitement, motivation, and engagement an individual has for your organization’s mission.
Interest
67
The collection of information that illustrates why an organization is worthy of support.
Case for support
68
The formal process of determining both organizational readiness and potential constituency support of a capital campaign or project. These are typically performed by a third-party consultant or company that specializes in this area.
Feasibility study
69
Philanthropic donations made to an organization in honor of another person (typically deceased).
Memorial and tribute gifts
70
A record of all donation requests made by the organization whether they are successful or not. It includes both mass appeals (email, direct mail, etc.) and in-person asks of any size.
Solicitation history
71
A comprehensive framework for how messages will be delivered, who will deliver them, and how they will be crafted.
Communications plan
72
The process by which a nonprofit board provides strategic leadership through vision casting, policy setting, strategic planning, oversight, and accountability.
Governance
73
A comprehensive process that identifies future goals and objectives that will position an organization to further its mission.
Strategic planning
74
The process of accepting and managing resources that have been entrusted to the organization through philanthropy.
Stewardship
75
A specific and thoughtful strategy for meeting with and requesting a gift from an individual donor.
Solicitation plan
76
An agreement which outlines the mutual understanding between an organization and a donor or business which outlines the branding to be placed on a building, program, or event and other special considerations in exchange for a major gift.
Naming rights
77
In setting up a fundraising program focused on foundations for a new organization, the first step is to:
Research foundations that give to similar organizations and follow up.
78
The primary purpose of rating an organization's donors is to determine their
Potential to give to the organization
79
The process of establishing the financial range of gifts that a donor will reasonably consider is re to as:
Rating
80
Foundation prospects for an organization are best identified by the geographic scope of the foundation, its granting criteria, and the foundation's:
Previous giving history
81
Prospective donors for an organization are best identified by:
Links with the org, giving ability, and interest
82
Prospect research is:
Ongoing, selective, confidential, accurate, personal, relevant
83
A case answers these questions:
Who is the org?
What community need are they attempting to address?
Why is the org worthy of support?
Why is the org the best to solve this societal need?
84
Capital campaign
A structured fundraising effort outside the annual campaign to secure significant gifts and pledges during a defined timeframe for unique purposes, such as buildings, endowments or equipment
85
Nucleus gift
A major gift given in the initial stages of a campaign, typically at the start of a campaign.
86
Trust
A legal vehicle in which one party the truster gives a second party the trustee permission to manage assets for the benefit of an organization. These common variety of forms, including living (all the truster is still alive - testamentary - and acted up upon death - revocable - can be modified - and irrevocable - cannot be modified or terminated
87
Donor retention strategies
* Build a donor-focused approach to stewardship and cultivation
* Provide excellent customer/donor service
* Follow up in a timely manner
* Communicate consistently
* Provie evidence of value from the investment the donor has made
* Follow-up with lapsed donors
* Don't just ask them to give again. Give lapsed donors a platform to express their reasons for not continuing to give.
* Making giving convenient and encourage monthly giving.
88
Donor acquisition strategies
* Use your donor management system to id key segments and profile your "average" donor.
* ID unreached groups with similar characteristics
* Use a 3rd-party company to research prospective donors
* Perform targeted outreach based on those findings
89
Components of a comprehensive communication plan
* Determine a goal
* ID & profile audience
* Develop messages
* Select communications channels
* Choose activities and materials
* Implement the plan
* Evaluate and begin again
90
Types of Foundation support
* Operations (unrestricted): Support ongoing operations with no use restrictions.
* Program (restricted): Support for a specific activity or plan.
* Capital (Support for a building, facility expansion, equipment or endowment.
* Pilot: Support for a start-up program for a limited time.
* Challenge: Support designed to encourage others to give to a campaign or project by matching the generosity of individual givers.
91
Independent Foundation
A private foundation that supports tax exempt organizations through grants
92
Corporate Foundation
A foundation that functions like a private foundation, but receives its assets from the company it is associated with and prioritizes funding projects aligned with its business interests
93
Community Foundation
A foundation that both makes and receives gifts and limits its funding to a specific geographic area
94
Operating Foundation
A foundation that seldom makes gifts to other organizations, rather it is directly involved in the mission for which it was formed.
95
Corporate giving trends
* As a percentage of profits, has gone down in the past 30 years, while cause marketing and sponsorships have gone up.
* now accounts for 5% of total giving
* of total, 1/3 comes from corporate foundations
96
Companies are most interested in giving to causes that:
* Create a link between the organization and the company that is beneficial to the company socially and financially; and
* Are measurable, proactive, and focused.
97
Motivations for companies to give:
* Improve the quality of life in the community in which they do business and their employees/customers live.
* Improve the competitive environment in which they do business
* Attracting and keeping employees and customers
* Improving the quality and skills of their workforce
98
Methods of corporate funder research:
* Annual reports
* Corporate citizenship and sustainability reports
* Volunteer (board member) connections
* LinkedIn
99
Corporate Productivity Model (of corporate giving)
Giving because it will help increase profits and boost stock value for shareholders.
100
Ethical or Altruistic Model (of corporate giving)
Giving because the company has an obligation to be a good corporate citizen and exhibit social responsibility.
101
Political Model (of corporate giving)
Giving because it secures, enhances, or protects corporate power and influence with government and community leaders
102
Stakeholder Model (of corporate giving)
Giving because it is deemed the proper response to the needs of the various stakeholders who have an interest in the company. These include employees and their families, customers, the local community and organizations.
103
Donor relations
Maintaining donor interest through organized communications, personal involvement, and acknowledgement.
104
Giving Club
A segmented group of donors who give at regular intervals (monthly, annually) and receive special communications, access, and recognition based on membership
105
Matching gift research
the likelihood of a gift increases 22% when a match is offered; and the revenue per solicitation increases 19%
106
107
Major gift fundraising guidelines
* MGO should manage a portfolio of no more than 150 prospects
* MGO is expected to make 30 solicitations per year, resulting in 15-20 gifts
* MGO is expected to qualify 15-25 new prospects per year.
108
Key elements of a successful capital campaign
* Feasibility study
* Commitment of time and support from all key stakeholders
* A strategic plan
* A clearly articulated case for support
* A donor base that is willing and able to commit to substantial lead gifts before the public phase of the campaign
* Competent staff and/or the help of outside counsel
* An adequate budget for campaign expenses
109
Donor motivations
* Awareness of the need and a desire to help the recipients
* A sense of duty
* Tax benefits
* Routine giving is mostly impacted by a personal connection to the cause or organization
* The top motivator for unexpected giving is a personal connection or crisis
* The number two motivator for online giving: social media influencers, celebrities, and politicians
110
Questions a feasibility study should answer for the organization
* Is the capital campaign the correct strategy?
* Is the timing of the campaign optimal?
* Does the org have the infrastructure needed?
* Who will lead the campaign?
* What is the constituent base's capacity and willingness to give?
* Is the constituent base ready and willing to support the campaign beyond financial gifts?
111
Key elements of volunteer retention
* engagement
* feedback
* gratitude
* acknowledgement
* clear understanding of mission
* a sense of purpose
112
Trends in volunteerism
* 80% give financially
* 36% of volunteers spend their time fundraising - it is the #1 volunteer activity
* 20-50% of campaign $ total comes from board, foundations, and companies they control
* volunteers give at 2x the rate of non-volunteers
113
Volunteer best practices
* keep volunteers engaged
* state their roles clearly
* explain the benefits and outcomes of their roles and service
* don't waste their time
* always thank them for their time
* include volunteers in the planning process
* train volunteers in both their roles and the fundraising process
114
What is the most critical factor in determining the likelihood of campaign success?
The commitment and quality of board leadership
115
Fundraising expense evaluation standards
* for a capital campaign with a goal of < $10M = 10-12% of goal
* for a campaign with a goal of >$25M = 4% of goal
* At a minimum, the rate of return should be > amount spent raising
* ideal rate of return $1 spent to $10-$20 raised
