Free CFRE Practice Test
1. Why is it necessary for those within an organization to continue analyzing the characteristics of current donors?
a. To ensure that the current donors are making or have made their promised contributions
b. To review giving habits and see which donors need to be targeted for specific programs
c. To see which donors need to be reminded about their donation promise
d. To remove donors who fail to meet their donation promises from the list
2. What is the primary value of a ratings program within an organization's data management system?
a. To allow the system to reduce or remove donors who have limited potential
b. To categorize donors by demographics, socioeconomics, and giving habits
c. To establish a statistical analysis of potential donors and increase donations
d. To organize donors, both current and potential, for ongoing solicitation
3. Nonprofit organizations that utilize direct mailings frequently allow other organizations to make use of their mailing lists. To fulfill the requirements of privacy legislation, the organization must include which of the following in their own direct mailings to current and potential donors?
a. Statement of purpose
b. Mailing address for removal
c. Return mailing envelope
d. Disclosure statement
4. Donors are motivated by various reasons to give to an organization. Which of the following is considered the least likely reason people donate?
a. Satisfaction of ego
b. Public image of organization
c. Sense of common purpose
d. Empathy for those in need
5. Why is the so-called "circle of friends" -that is, friends of those who are already donors-not considered a viable long-term plan for acquiring donations?
a. The friends have probably already heard of the organization and made a decision about whether or not to donate.
b. It is unethical, as well as illegal, to utilize the friendships of current donors for potential donations to the organization.
c. Historically, donors tend to be disinclined to solicit their friends for potential donations to nonprofit organizations.
d. The circle of friends is not a permanent source of potential donors, because that circle will eventually run out.
Answers & Explanations
1. B: An analysis of current donors allows the organization to target donors for specific programs. In other words, if the organization has a project planned and knows that certain donors are inclined to give to similar projects, those donors are the ones to target first. No doubt it is good to know that donors are making their promised contributions (answer choice A), but reminding donors of their donation promises (answer choice C) is a delicate area and needs to be handled carefully. More to the point, though, keeping track of donation promises is not the primary purpose of an ongoing analysis of current donors. Similarly, the purpose of this analysis is not necessarily to clear the list of donors who fail to meet their donation promises.
2. D: The purpose of the ratings program within the data management system is simply to organize donors-whether current or potential-for ongoing solicitation. The other answer choices represent good options, but none of them correctly indicates the stated purpose of the ratings system. The ratings system is simply to organize donors according to potential donations to ensure that the most likely donors are rated highest. In this, the organization focuses on spending its solicitation money wisely and targeting those who are most likely to donate to the organization.
3. D: If the organization plans to share its mailing list with other organizations, it needs to include a disclosure statement letting recipients know. The statement of purpose, mailing address for removal, and return mailing envelope are helpful, but none of these are required to fulfill privacy legislation.
4. D: Surprisingly, studies have shown that the donors' empathy for those in need is often the least likely motivating factor in making a donation. Donors are far more likely to be motivated by the satisfaction of their own egos, the public image of the organization, and a sense of common purpose with the organization.
5. D: The simplest answer is often the best, as in this case: a circle of friends only goes so far as the circle extends, and there is a good chance the organization will simply run out of potential donors too quickly. There is no reason to assume the friends have already heard of the organization (A); there is as likely a chance that they have not, as there is a chance that they have. There is no legal or ethical hindrance to tapping into the friendships of donors (B), assuming the connection is made in an above-board manner. Finally, there is no evidence that donors tend to dislike sharing information about an organization with friends (C); in fact, the opposite is more likely to be true.
Last Updated: 12/14/2017