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CFRE EXAM LATEST UPDATED 2024-2025accountability - ANSWER It is the donee organization's responsibility to keep a
donor informed about the usage of the donor's donation and the cost of raising it.
Acknowledgement - A written expression of appreciation for a gift or service.
Acknowledgement letter - ANSWER A letter addressed by a donee, or on behalf of
a donee, to the donor expressing gratitude for a gift and describing the intended use
of the gift. An acknowledgement letter might be a form letter, but it is typically
personalized.
Acquisition mailing (also known as prospect mailing) - A mailing sent to
prospective members or donors.
ANSWER Advance gifts are gifts given or committed before to a campaign's
official announcement. Advance donations are solicited before a campaign is
revealed since the magnitude of the advance gifts can determine whether a
campaign succeeds or fails.
An advisory board is a group of influential individuals who support a development
program's goals and objectives.
analysis - ANSWER The component of a research that deals with the factors
necessary for success in a fundraising program, primarily the case for support,
leadership potential, and fields of support.
Annual giving - ANSWER Annually repeating donation programs; requesting
funds on an annual or recurrent basis from the same constituency; income is
typically utilized to finance the operations budget.
,Annual reports are prepared by an organization's management to summarize
financial and organizational situations.
An anonymous contribution is one where the donor's name is not included in the
announcement, as per their wishes.
ANSWER Gifts of appreciated real estate or securities, when kept long term, are
deductible for federal income tax purposes at the full fair market value with no
capital gain on appreciation. However, the appreciation is a tax preference item,
and professional advice should be sought to determine whether this would result in
alternative minimum tax consequences.
associates - ANSWER A phrase used to indicate a group of people who may assist
an institution by making regular contributions, participating on a special advisory
board, or sponsoring unique institutional events.
Audits are internal evaluations of development practices by non-profit institutions
or agencies, typically undertaken by professional fundraising counsel.
ANSWER A bargain sale is the sale of property for less than its fair market value.
Frequently, a person will sell property to a 501(c)(3) organization or institution at a
"bargain" price (for example, the individual's cost rather than market value). The
transaction is divided into two parts: gift and sale.
The term "benefactor" refers to a person who makes a significant gift to an
institution or agency. It can also refer to a group of contributors whose gifts exceed
a specific threshold, to encourage others to follow suit.
Benefit events are a type of fundraising that involves organizing and staging a
special event for charitable causes. Any revenues beyond expenditures are donated
to the charitable institution.
, Benevolence is defined as a willingness to do good; an act of kindness; or a
generous gift.
A bequest is a will-based transfer of personal property such as cash, securities, or
other tangible property.
BIG presents - ANSWER A broad word used to refer to presents in the upper
levels, with specific restrictions varied each institution. Their value is underlined in
all fundraising efforts.
A board of directors is a group of individuals chosen by other directors or members
to develop policies and oversee an organization's operation, as outlined in the
bylaws.
book value - ANSWER The amount of an asset indicated in a company's books, but
necessarily the amount it may sell for on the open market.
Bricks and mortar - ANSWER A common term used to refer to an institution's
physical plant demands as well as efforts aiming to raise the necessary finances. A
"bricks and mortar campaign" raises funding for building projects.
A budget is a precise description of projected income and expenses for a
development program that is created ahead of time. Budgets include cost categories
such as people, printed materials, equipment purchases and rentals, office expenses,
headquarters, postage charges, and event costs.
Campaign: A coordinated effort to raise donations for a non-profit organization.
Campaign expenditures are expenses that are judged necessary for the planning and
execution of a campaign and are directly tied to campaign budget forecasts.
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