CFRE EXAM QUESTIONS WITH
VERIFIED CORRECT ANSWERS ||
GRADED A+
< UPDATED VERSION>
Financial Integrity / Gift Acceptance - ANSWER Avoid affiliations
where questions may arise or when intentions of the donor are less than
philanthropic
Adopt a Gift acceptance policy
...
Financial Integrity / Gift Acceptance - ANSWER ✔ Avoid affiliations
where questions may arise or when intentions of the donor are less than
philanthropic
Adopt a Gift acceptance policy
Investment Policies - ANSWER ✔ 1. consistent with values
2. investing in ventures that further the mission and divesting from
companies whose activities undermine the mission.
Ethical Fundraising - ANSWER ✔ 1. appearance of impropriety
2. Rights of donors
3. public privacy
4. tainted money
5. compensation
6.using donations as intended
7. ethical considerations when making the ask
8. honesty and full disclosure
9. ethical decision making
Ethics as a Guiding Force - ANSWER ✔ 1. restoring public confidence
2. regulations
,3. ethics in grantmaking and grantseeking
4. ethical relationships between grantees and funders
5. ethical codes and standards
6. websites
7. Statement of values and standards
Gift Limit - ANSWER ✔ NO limit to a gift in a will. All of the gift is
deductible from the donor's taxable estate.
Anonymous donors - ANSWER ✔ 1. unknown to NPO
1. known to NPO and requested anonymity to public
Donor Record - ANSWER ✔ A donor is entitled to see their donor
record anytime they wish
Donor Bill of RIghts
What is philanthropy based on? - ANSWER ✔ Philanthropy is based on
a voluntary action for the common good
What is stewardship? - ANSWER ✔ Is the responsibility for gifts
entrusted to the NPOs care
Who is the primary regulator of fundraising administration? -
ANSWER ✔ IRS
What should NPOs do to ensure proper stewardship of charitable
contributions? - ANSWER ✔ timely reports on the use and management
of funds
What is donor intent? - ANSWER ✔ Donors have rights and NPOs
have responsibilites in handling and managing gifts. NPO must honor
the donor's restrictions on the use of funds.
,What happens if a fundraiser is named in a bequest? - ANSWER ✔
decline the gift
What should volunteer policies do wrt donor records? - ANSWER ✔
restrict access to
Quid pro quo Contribution - ANSWER ✔ A donor who makes a quid
pro quo contribution on $250 or more should receive a receipt that
informs them of the value of goods and services and charitable
deduction.
What gift amount needs a receipt? - ANSWER ✔ IRS requires an NPO
to receipt gifts of $250+ as documentation for a charitable deduction
What does carry it forward mean? - ANSWER ✔ When the full amount
of a deduction cannot be used in the first year, the deduction may be
carried forward for 5 additional years.
How is it best to value a Property? - ANSWER ✔ An independent
appraisal is the best means to value a property for gift purposes
When should the NPO record the pledge in the gift record and in the
audited financials? - ANSWER ✔ when the donor makes a pledge
payable on a specific date
What should be included in a gift in kind receipt? - ANSWER ✔ must
include a description of the gift in kind
what should senior staff be concerned about the CEO? - ANSWER ✔
integrity and honesty. bring forward to the attention of the Board Chair
, The ethical principle of confidentiality is the first priority of the NPO -
ANSWER ✔ balance between the need of an NPO to collect, analyze,
maintain information and donor's privacy
What is the Donor's Bill of RIghts? - ANSWER ✔ a set of principles
and tenets developed by the AFP, AHP, AAFRC and CASE
According to DBOR, what should donors receive after a gift? -
ANSWER ✔ acknowledgement and recognition
What are the three most important components of a gift agreement? -
ANSWER ✔ 1. donor's name
2. NPO name
3. Amount
Which of the following sectors attracts the most philanthropic support? -
ANSWER ✔ a.Social causes
b.Education*
c.The Arts
d.Healthcare
Which of the following individuals is most likely to give a major gift ? -
ANSWER ✔ 1. A current donor
2. An event attendee
3. A friend of a board member
4. A well-researched prospective donor
The most appropriate role for a volunteer in thanking donors is to: -
ANSWER ✔ 1. Write a personal note
2. Send an invitation to a recognition event
3. Send an official gift receipt
4. Report on how gifts were expended
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