Nonprofit Fundraising and Development 2 — Questions and Answers
Question 1: What is a planned gift (legacy gift) in nonprofit fundraising?
- A donation arranged as part of a donor's estate plan, such as a bequest or charitable trust (Correct answer)
- A gift pledge paid over multiple years
- A corporate matching gift arranged in advance
- A donation made via recurring monthly payments
Correct answer: A donation arranged as part of a donor's estate plan, such as a bequest or charitable trust
Planned gifts are charitable contributions arranged during a donor's lifetime but often realized upon death, including bequests, charitable remainder trusts, and gift annuities.
Question 2: What is a challenge grant in nonprofit fundraising?
- A conditional gift where a donor pledges funds only if the organization raises a matching amount from others (Correct answer)
- A competitive grant awarded to the most innovative nonprofit proposal
- A government grant with strict compliance requirements
- A grant that must be spent within 90 days of receipt
Correct answer: A conditional gift where a donor pledges funds only if the organization raises a matching amount from others
A challenge grant motivates other donors to give by offering to match contributions up to a set amount, creating urgency and a sense of community investment.
Question 3: What is a giving society in nonprofit development?
- A donor recognition program that acknowledges contributors at various gift levels (Correct answer)
- A cooperative of nonprofits sharing fundraising resources
- A state-regulated donor association
- A planned giving society specifically for estate gifts
Correct answer: A donor recognition program that acknowledges contributors at various gift levels
A giving society recognizes and cultivates donors who give at specific levels, fostering community and providing incentives for donors to increase their giving.
Question 4: What does LYBUNT stand for in fundraising analytics?
- Last Year But Unfortunately Not This year — donors who gave last year but not in the current year (Correct answer)
- Largest Year-Based Unrestricted Net Total
- List of Your Best Upcoming New Targets
- Long-term Year-Based Unrestricted Nonprofit Transfer
Correct answer: Last Year But Unfortunately Not This year — donors who gave last year but not in the current year
LYBUNT identifies lapsed donors who gave in the prior year but have not yet given this year, making them a top re-solicitation priority.
Question 5: What is the role of a Development Director in a nonprofit?
- To lead and manage all fundraising and donor relations activities to secure the organization's financial support (Correct answer)
- To oversee program delivery and evaluation
- To manage the organization's investment portfolio
- To serve as the primary liaison to the board of directors
Correct answer: To lead and manage all fundraising and donor relations activities to secure the organization's financial support
The Development Director is the chief fundraiser responsible for designing and executing strategies to build relationships and raise contributed revenue.
Question 6: What is a fundraising feasibility study?
- Research conducted to assess donor readiness and potential before launching a major campaign (Correct answer)
- An audit of past fundraising campaigns for efficiency
- A government-required study for charity registration
- A financial analysis of the organization's earned income potential
Correct answer: Research conducted to assess donor readiness and potential before launching a major campaign
A feasibility study involves confidential interviews with prospective donors and stakeholders to gauge support and realistic capacity before a major campaign launch.
Nonprofit Fundraising and Development 2
What is a planned gift (legacy gift) in nonprofit fundraising?