Fundraising & Resource Development Flashcards
7 cards from real CNC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Fundraising & Resource Development flashcards as text
In a capital campaign, what is the 'quiet phase' typically characterized by?
Answer: Soliciting lead and major gifts before public announcement
The quiet phase focuses on securing 50–70% of the campaign goal from top donors before announcing the campaign publicly to build momentum and credibility.
What does 'LYBUNT' mean in nonprofit donor database terminology?
Answer: Last Year But Unfortunately Not This year
LYBUNT identifies donors who gave last year but have not yet given this year, making them a priority re-engagement segment.
A nonprofit hosting a fundraising gala charges $200 per ticket, and each ticket costs $75 to fulfill. A donor pays $200. What is the tax-deductible portion of their ticket purchase?
Answer: $125
The deductible portion is the amount paid minus the fair market value of goods/services received; $200 – $75 = $125.
Which type of corporate giving involves a company donating a percentage of product sales to a nonprofit partner?
Answer: Cause-related marketing
Cause-related marketing ties corporate revenue from sales directly to charitable donations, benefiting both the company's brand and the nonprofit.
What is the primary ethical concern with 'commission-based' fundraising compensation?
Answer: It can incentivize aggressive tactics that compromise donor relationships and integrity
AFP's Code of Ethical Standards prohibits commission-based compensation because it can pressure fundraisers to prioritize short-term revenue over donor-centered relationships.
An endowment is best described as which of the following?
Answer: A permanently restricted fund whose principal is invested and only income is spent
Endowments preserve the principal in perpetuity while allowing the organization to spend only the investment income, providing long-term financial stability.
Which prospect research tool is used to estimate a donor's capacity to give based on real estate holdings, SEC filings, and business affiliations?
Answer: Wealth screening
Wealth screening uses publicly available data sources to estimate a prospect's financial capacity, helping prioritize major gift cultivation.