CED Fundraising & Development Flashcards

What does ROI mean in the context of a fundraising campaign?

Answer: Return on investment — net revenue divided by the cost of fundraising

Fundraising ROI measures the efficiency of a campaign by comparing net funds raised to total campaign costs.

What is a 'grant proposal narrative'?

Answer: The written description of a project that accompanies a formal grant application

The narrative section of a grant proposal explains the problem, solution, organizational capacity, and evaluation plan to persuade a funder to award the grant.

A 'challenge grant' is designed to:

Answer: Motivate other donors by offering matching funds only if a specific goal is met

Challenge grants leverage a donor's gift to inspire others by making the match conditional on the organization raising a specified amount within a set timeframe.

In nonprofit development, what is 'lapsed donor reactivation'?

Answer: Strategies to re-engage donors who have stopped giving

Lapsed donor campaigns target former supporters with personalized messaging to encourage them to resume their giving relationship with the organization.

Which metric best measures fundraising efficiency?

Answer: Cost to raise a dollar (CTRD)

Cost to raise a dollar (CTRD) shows how much an organization spends to generate each dollar of fundraising revenue, with lower values indicating greater efficiency.

What is the primary purpose of a 'feasibility study' before launching a capital campaign?

Answer: To assess donor readiness and capacity before committing to a campaign goal

A feasibility study involves confidential interviews with key prospects and stakeholders to gauge their interest and giving capacity before setting a public campaign goal.