Nonprofit Fundraising and Development 1 — Questions and Answers
Question 1: What is a case for support in nonprofit fundraising?
- A compelling document explaining why donors should give to the organization (Correct answer)
- A legal brief submitted when applying for grants
- A financial audit report shared with major donors
- A government registration form for charitable solicitation
Correct answer: A compelling document explaining why donors should give to the organization
The case for support articulates the organization's mission, impact, and urgent need in a way that motivates donors to give.
Question 2: What is a major gift in nonprofit fundraising?
- A significant donation, typically the largest gifts in an organization's portfolio, often starting at $1,000 or higher (Correct answer)
- Any donation made by a foundation
- A recurring monthly gift set up online
- A gift that includes a bequest in the donor's will
Correct answer: A significant donation, typically the largest gifts in an organization's portfolio, often starting at $1,000 or higher
Major gifts are large donations that represent the top tier of an organization's giving pyramid and typically require personal cultivation and solicitation.
Question 3: What is the purpose of a gift acknowledgment letter?
- To thank donors and provide IRS-required documentation of their contribution (Correct answer)
- To report donation totals to the state
- To request additional gifts from lapsed donors
- To disclose the organization's program expenses to donors
Correct answer: To thank donors and provide IRS-required documentation of their contribution
Gift acknowledgment letters fulfill the legal requirement to document donations while also expressing gratitude to strengthen donor relationships.
Question 4: What is prospect research in development?
- The process of gathering information about potential donors to assess their giving capacity and interest (Correct answer)
- Researching grant opportunities from foundations
- Evaluating the effectiveness of fundraising campaigns
- Analyzing donor retention data
Correct answer: The process of gathering information about potential donors to assess their giving capacity and interest
Prospect research uses publicly available information to identify and qualify potential donors, helping fundraisers prioritize cultivation efforts.
Question 5: What is donor stewardship?
- The ongoing process of building and nurturing relationships with donors after a gift is made (Correct answer)
- The legal management of restricted gift funds
- The process of recruiting new board members from the donor pool
- The financial oversight of grant expenditures
Correct answer: The ongoing process of building and nurturing relationships with donors after a gift is made
Donor stewardship encompasses all efforts to thank, engage, and report back to donors to retain their support and encourage future giving.
Question 6: What is an annual fund?
- A yearly fundraising effort targeting broad donor participation to support operating expenses (Correct answer)
- A savings account for end-of-year budget surpluses
- The total revenue raised in a single fiscal year
- A grant fund renewed annually by a foundation
Correct answer: A yearly fundraising effort targeting broad donor participation to support operating expenses
The annual fund is the backbone of most nonprofit fundraising, soliciting regular gifts that sustain day-to-day operations each year.
Nonprofit Fundraising and Development 1
What is a case for support in nonprofit fundraising?