CED CED Fundraising & Development 1 — Questions and Answers
Question 1: What is a 'case for support' in nonprofit fundraising?
- A legal document for tax exemption
- A document articulating why donors should give to an organization (Correct answer)
- A report on past fundraising outcomes
- A grant application template
Correct answer: A document articulating why donors should give to an organization
A case for support is a compelling narrative that explains an organization's mission, need, and impact to motivate donor giving.
Question 2: Which fundraising approach involves asking donors to make unrestricted gifts that can be used for any organizational need?
- Capital campaign
- Endowment fund
- Annual fund (Correct answer)
- Restricted grant
Correct answer: Annual fund
Annual fund solicitations typically seek unrestricted gifts to support general operating expenses and programs.
Question 3: A planned gift most commonly refers to:
- A multi-year pledge
- A bequest included in a donor's will (Correct answer)
- A matching gift from an employer
- A corporate sponsorship
Correct answer: A bequest included in a donor's will
Planned giving (also called legacy giving) most often involves bequests designated in a donor's estate planning documents.
Question 4: What is a 'matching gift' program?
- A government grant matching program
- A corporate benefit where employers match employee charitable donations (Correct answer)
- A donor challenge where two donors split a gift equally
- A foundation grant requiring a local match
Correct answer: A corporate benefit where employers match employee charitable donations
Corporate matching gift programs double or more the impact of employee donations by having the employer contribute an equal or proportional amount.
Question 5: In major gift fundraising, what does 'moves management' refer to?
- Relocating donor records to a new database
- A systematic process of cultivating and stewarding donors toward a major gift (Correct answer)
- Managing volunteer transportation logistics
- Shifting donors from online to offline giving
Correct answer: A systematic process of cultivating and stewarding donors toward a major gift
Moves management tracks intentional relationship-building steps taken to advance a prospect from identification to solicitation and stewardship.
Question 6: What is the purpose of a donor prospect research tool like WealthEngine or DonorSearch?
- To process online donations securely
- To identify and rank potential major donors based on wealth and philanthropic history (Correct answer)
- To manage grant applications
- To track volunteer hours
Correct answer: To identify and rank potential major donors based on wealth and philanthropic history
Prospect research tools help development teams prioritize outreach by screening for indicators of wealth and previous charitable giving.
CED CED Fundraising & Development 1
What is a 'case for support' in nonprofit fundraising?