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Fundraising for Nonprofit Final Exam Review

Terms in this set (43)

In the textbook and lectures, charity is defined as giving intended to meet current human needs such as aiding victims of a natural disaster (T/F)
True
In the textbook and lectures, philanthropy is defined as investment in infrastructure in society (T/F)
True
A distinction between a fundraiser and a development officer is that a fundraiser is skillful and soliciting gifts, while a development officer needs to also be a strategist and manager of the entire development process (T/F)
true
While marketing and public relations include activities in which businesses, nonprofits, and government agencies all engage, fundraising is an organizational function that is exclusive to nonprofit organizations (T/F)
True
The mission statement is so central to all nonprofit organizations that they are said to be mission driven
True
One overriding characteristic of nonprofit organizations is that they are prohibited from making a profit (T/F)
False
Nonprofit organizations are primarily closed systems (T/F)
False
The non distribution constraint means that a NPO cannot give net earnings to board members, staff, or directors (T/F)
True
The tax deductibility of gifts made charitable nonprofits should not be viewed as a tax "loophole" because it was unintentionally provided as an incentive to giving
False
Organizations that are exempt under section _______ of the tax code are "social welfare organizations" encompassing what we would generally call advocacy organizations
501(c)(4)
All nonprofit organizations are tax exempt - that is they are not required to pay federal taxes on their income, but only those classified under section ______ are also eligible to receive gifts that are tax deductible for the donors
501(c)(3)
Organizations classified under _______ have limitations on the amount they can spend while ______ organizations can spend money on lobbying without limitation
501(c)(3) ; 501(c)(4)
________ are public charities that receive support from a relatively large number of donors or from government, while ________ usually have only one or a few donors
Public charities; private foundations
Donations which are earmarked for specific purpose are considered to be unrestricted (T/F)
False
In the context of failure theories , nonprofit organizations are _____ since they provide goods and services government and for profit organizations do not
gap filler
One significant risk of resource dependency is _________ - actions taken by the NPO to alter its activities to satisfy the contributor of funds
Goal displacement
Private foundations are required to spend at least 5% of the value of their invested assets each year
True
The motivations for corporate philanthropy relate primarily to business goals (T/F)
True
_______________ is where a corporation gives to a NPO according to a plan that related to the corporations philanthropy to its overall strategic and business goals
Strategic philanthropy
No donor ever gains financially from making a gift (T/F)
True
The cajoling model or scolding model is the most effective way to communicate with wealthy donors (T/F)
False
Female headed households are more likely to donate then male (T/F)
True
Gifts that are relatively small, usually less than $1,000; often repeated on a regular basis are generally called __________
Annual gifts
Restricted gifts can be used at the discretion of the organization, often used to support the current year operating budget
False
In the lectures and text, the Pareto Principle is used to describe the fact that often:
80% of an organization generally comes from 20% of its donors
As a result of the Pareto Principle, NPOs should focus the majority of their efforts on high-end donors (T/F)
False
Proportionate giving means that people give in proportion to their financial capacity (T/F)
True
NPOs should follow the strategy of _________ where the organization begins by soliciting gifts from the top down, and inside out, soliciting larger gifts before smaller gifts and from those closest to organization before those whose connections were less strong
sequential fundraising
The fundraising process ends with 'the ask' or solicitation (T/F)
False
an organizations vision statement defines the organizations objectives and its approach to reach these objectives. It answers who, what, why (T/F)
False
One benefit of strategic is that it can help an organization avoid goal displacement by making them focus on the mission (T/F)
True
A SWOT analysis is a process where members of an organization identify _________ strengths and _________ opportunities and threats
Internal; external
The principle criteria for determining whether someone is a prospect worth pursuing for a donation is:
Linkage, Ability, interest
The three primary objectives of an "annual giving program" are to acquire new donors and renew support (T/F)
True
Acquiring new donors is called "converting" (T/F)
True
First-time donors are most likely to be found outside the organization's constituency (T/F)
False
________________ is the process of developing descriptions of a typical donor of your organization, and then soliciting others with similar profiles
Profiling and targeting
Utilizing "cold lists" is a useful strategy
False
If the cost of acquiring the new donor exceeds the amount of the donors first gift, then thats a fundraising failure (T/F)
False
The _________ technique to telephone solicitation involves starting with small request and working up to something more
Foot in the door
The theory behind ________ is that people will respond more favorable when first asked how they feel
Foot in the mouth
The door in the face technique involves starting with a high request and then then asking for something less when denied (T/F)
True
According to a 2003 study, most donors report that their name listed by gift level will cause them to give more than they otherwise would (T/F)
False
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