CFRE Speak

Question 1

Volunteer

Answer 1

Any individual who works without compensation on behalf of an organization or cause, whether temporarily or on a relatively continuous basis

Question 2

Ability

Answer 2

An assessment of the financial capacity, stage of life, and the liquidy of a donor’s assets

Question 3

Annual Report

Answer 3

A review of the revenue, expenditures, program results and general state of the organization over the previous 12 months

Question 4

Bequest

Answer 4

a provision made in a donor’s will, thorugh which a organization recieves cash and/or other assets at the time of the donor’s death

Question 5

Campaign

Answer 5

A fundraising structure that has a focus on an organization’s needs, targets all constituencies, uses an intensive time frame, extensive promotion and ultimately seeks monetary success

Question 6

Capital Campaign

Answer 6

A campaign to raise substantial funds for a nonprofit organization to finance major building projects, to supplement endowment funds and to meet other needs demanding extensive outlays of capital.

Question 7

Case

Answer 7

The combination of reasons advanced by an institution or agency in justifying its appeals for support, with emphasis on its past, present and potential services. One of the three basic pedestals upon which fundraising success must rest. The others are leadership and fields of support

Question 8

Case Statement (formal definition)

Answer 8

A written version of the case for a specific constituency or campaign, derived from the organization’s overall case

Question 9

Case Statment (informal defintion)

Answer 9

A persuasive tool often used in fundraising

Question 10

Cause Marketing

Answer 10

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 peroid of time

Question 11

Charitable gift annuity

Answer 11

a legal contract between the donor and the org, though which the donor exchanges cash, stocks, or other assets for an agreed-upon income for life

Question 12

Charitable lead trust

Answer 12

Established by a donor transferring assets to a trust that provides income to a nonprofit org for an individual’s life or for a peroid of years or combo, at the end of that peroid, the trust assets revert either to the donor (grantor) or to someone the donor designates (non-grantor)

Question 13

Charitable Remainder Trust

Answer 13

used by donors to transfer assets to a trust, which then goes to the org after the death of the last beneficiary or the end of the term of years. The donor retains a fixed or variable income for life or for a term of years

Question 14

Communication

Answer 14

A two-way transmission of information, thought, or feeling so that is is satisfactorily received and understood

Question 15

Donor Intent

Answer 15

The expectation of how a gift will be used and what outcomes may be expected from the use of the gift

Question 16

Donor Rating

Answer 16

The financial range of gifts that a donor will reasonably consider

Question 17

Endowment Gifts

Answer 17

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

Question 18

Interest

Answer 18

The combination of concern, excitement, motivation, and engagement an individual has for your organization’s mission

Question 19

Life estate contract

Answer 19

an agreement established by donors transferring a deed of real property to an org while reserving for themselves and/or someone else the right to live on or use the property for life. Must be either personal residence or farm to be deductible.

Question 20

Life Insurance

Answer 20

A contract between an individual and an insurance company, providing a payment to the individual estate or to named beneficiaries at the individuals death. A charity can be a named beneficiary.

Question 21

Linkage

Answer 21

The connections a donor or prospect has to your organization and/or its mission. Ex: experience (former alum, program participant), connections with people (friend, relative, colleaguge), shared values (advocacy, stage of life) and personal history.

Question 22

Longevity

Answer 22

The number of years a donor has been giving

Question 23

Market Research (formal definition)

Answer 23

The process of gathering, recording, and analyzing information pertaining to the marketing of goods and services

Question 24

Market research (informal definition)

Answer 24

The process of finding out the wants and needs of current and potential markets

Question 25

Marketing

Answer 25

A process designed to bring about the voluntary exchange of values between a nonprofit organization and its target market, such as the transfer of a donation in exchange for addressing a social need, recognition, or a feeling of goodwill.

Question 26

Mission Statement

Answer 26

The articulation of the purpose of an organization, including who it serves, the implied community need, and how the organization meets that need

Question 27

Naming Rights

Answer 27

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

Question 28

Payroll giving

Answer 28

A system where pretax deductions are made from an employees paycheck and donated directly to a nonprofit

Question 29

Pooled income fund

Answer 29

A common trust to which many donors make contributions and retain for themselves a pro-rata share of the fund’s earnings each year. As each beneficiary dies, the value of the fund attributable to that death is severed and paid to the organization. (similar to a mutual fund)

Question 30

Positioning Statement

Answer 30

Describes, in a few concise words, how the oranizatoin is uniue, making its mission simple and compelling

Question 31

Premium

Answer 31

An item or items of value given with a solicitaion or promised as the result of a gift

Question 32

Prior Year Budget

Answer 32

A budget that uses projected and actual figures from the previous fiscal year as a starting point to project what will be spend in the coming year.

Question 33

Prospect

Answer 33

A possible source of support whose philanthropic interests appear to be a match with your organization, whose ability to give, interests, and linkages have not been qualified via research

Question 34

Prospect Rating

Answer 34

A procedure for evaluating giving potential, usually involving staff research followed by a peer review process, often in small group settings

Question 35

Prospecting

Answer 35

The systematic acquisition and recording of data that forms the basis for establishing, maintaining, and expanding the long-term gift relationship, with the ultimate goal of converting donors into major gift donors

Question 36

Public Trust

Answer 36

An organization created for the benefit of the community or to meet societal needs

Question 37

Qualification

Answer 37

The ongoing process of assessing linkage, ability and interst of your donors in order to match them with the right program, appeal and amount

Question 38

Qualified Prospect

Answer 38

A prospect who continues to qualify as a logical source of support for the organization throughout a research, evaluation, and cultivation process

Question 39

Retirement funds (IRA Rollover provision)

Answer 39

A permanent tax code that allows people 70.5 and older to make a Qualified Charitable Distribution of up to $100,000 annually from their IRA to a qualified charity.

Question 40

ROI

Answer 40

Amount of revenue generated for a given strategy divided by the expenses required to generate the revenue

Question 41

Sequential Giving

Answer 41

A cardinal principle of fundraising advisors who counsel that gifts in a campaign should be sought from the top down, i.e., that the largest gifts in a gift range table should be sought at the outset of a campaign, followed sequentially by the search for smaller gifts

Question 42

Sight-Raising

Answer 42

Calculated attempts to induce previous donors to raise their levels of giving, and persuade undecided prospects to do the same

Question 43

Special Events

Answer 43

Any function designed to attract, involve and inform people about a cause or organization

Question 44

Stewardship

Answer 44

The tracking and recording of contributions to ensure they are used exactly as the donor intended

Question 45

Trusts

Answer 45

A legal vehicle in which one party gives a second party permission to manage assets for the benefit of an organization

Question 46

Values

Answer 46

Enduring beliefs that specific modes of conduct are personally or socially preferrable to others

Question 47

Zero Based Budget

Answer 47

A budget that starts with zero dollars and then builds expense and income budgets that match the development plan during the coming year.

Question 48

Integrated Fundraising

Answer 48

An approach where cases are matched with constituencies and goals are set for each segment and each case or constituency.