CFP Annual Giving Programs & Direct Response 1 — Questions and Answers
Question 1: What does the acronym LYBUNT stand for in annual giving programs?
- Last Year But Unfortunately Not This Year (Correct answer)
- Long-Year Benefactor Utilizing New Technologies
- Loyal Yearly Benefactor Under New Terms
- Lapsed Yearly Benefactor Upgrading Nonprofit Tiers
Correct answer: Last Year But Unfortunately Not This Year
LYBUNT stands for 'Last Year But Unfortunately Not This Year,' identifying donors who gave in the prior year but not in the current fiscal year.
Question 2: Which metric best measures the health of an annual giving program over time?
- Total funds raised
- Donor retention rate (Correct answer)
- Average gift size
- Number of new donors acquired
Correct answer: Donor retention rate
Donor retention rate is the most critical health indicator of an annual giving program, as retaining existing donors is far more cost-effective than acquiring new ones.
Question 3: What is the primary purpose of an annual fund in a nonprofit organization?
- To fund major capital projects such as buildings
- To provide unrestricted, current-use operating revenue (Correct answer)
- To build a permanent endowment for long-term stability
- To fund a single designated program or initiative
Correct answer: To provide unrestricted, current-use operating revenue
The annual fund provides unrestricted, current-use operating revenue that supports the organization's day-to-day programs and operational needs.
Question 4: According to industry benchmarks, what is the average donor retention rate for most nonprofits?
- 65–70%
- 80–85%
- 40–45% (Correct answer)
- 55–60%
Correct answer: 40–45%
The average donor retention rate for most nonprofits hovers around 40–45%, meaning more than half of donors do not give again the following year.
Question 5: What does SYBUNT stand for in annual giving segmentation?
- Some Years But Unfortunately Not This Year (Correct answer)
- Single Year Benefactor Under New Terms
- Sustaining Yearly Benefactor Utilizing New Techniques
- Several Year Benefactor Using Normal Tracking
Correct answer: Some Years But Unfortunately Not This Year
SYBUNT stands for 'Some Years But Unfortunately Not This Year,' identifying donors who gave in some previous years but not in the current fiscal year.
Question 6: Which of the following is the most cost-effective annual giving strategy?
- Acquiring new donors through cold list rentals
- Upgrading existing donors to higher giving levels
- Retaining and renewing existing annual fund donors (Correct answer)
- Converting major gift prospects to annual donors
Correct answer: Retaining and renewing existing annual fund donors
Renewing existing annual fund donors is the most cost-effective strategy because the cost per dollar raised is significantly lower for renewals than for new donor acquisition.
Question 7: What is the term for a recognition society that honors donors who give $1,000 or more to the annual fund?
- Planned giving society
- Leadership annual giving society (Correct answer)
- Capital campaign club
- Endowment recognition circle
Correct answer: Leadership annual giving society
A leadership annual giving society recognizes donors who contribute at the highest levels of the annual fund, typically starting at $1,000 or more per year.
CFP Annual Giving Programs & Direct Response 1
What does the acronym LYBUNT stand for in annual giving programs?