CFRE Questions and Correct Answers | Latest Update
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Module
CFRE
Institution
CFRE
Explain growth of the Nonprofit Sector
~~>1) Philanthropy and nonprofit organizations have always played a
significant role in US society
2) They play an even more significant role today
3) The nonprofit sector has grown to be a larger part of the US
economy
Explain philanthropy in US...
✓ ~~>1) NPOs have adopted entrepreneurial models sometimes forming
for profit subsidiaries to earn income that is used to support the NPO
2) NPOs earn income in different ways & compensate staff on a commission
basis based on marketing and business income
Fundraisers challenge:
✓ ~~>Commission is ethical for market based income but is unethical
based on philanthropic funds raised. (bonus is ok on # donors or on
cumulative revenue but not on an individual basis).
Donor behaviors
✓ ~~>1) are different from each other and from the previous generation
2) are interested in pursuing very distinctive projects
3) accumulated wealth quickly in the 1990s are interested in pursuing
philanthropy at a younger age
4) have developed a venture philanthropy approach (projects)
5) with a good project v. NP was a good cause (merging the two are
challenging)
Master01 | September, 2024/2025 | Latest update
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