Chapter 13: Philanthropic Fundraising

Test Bank

Multiple Choice

1. Although philanthropy is common around the world, organized fund-raising and philanthropy on a massive scale are still primarily a/an ______ phenomenon.

A. British

B. French

C. American

D. Canadian

Learning Objective: 13-1: Define key terms and concepts related to fundraising and philanthropy.

Cognitive Domain: Knowledge

Answer Location: Chapter Introduction

Difficulty Level: Easy

2. The largest portion of giving by individuals is given to ______.

A. education

B. hospice care

C. religious organizations

D. environmental charities

Learning Objective: 13-1: Define key terms and concepts related to fundraising and philanthropy.

Cognitive Domain: Knowledge

Answer Location: Chapter Introduction

Difficulty Level: Easy

3. What activity below is undertaken with the goal of eliciting charitable or philanthropic giving?

A. fund-raising

B. paying taxes

C. paying back taxes

D. charging fees for service

Learning Objective: 13-1: Define key terms and concepts related to fundraising and philanthropy.

Cognitive Domain: Knowledge

Answer Location: Definitions and Distinctions

Difficulty Level: Easy

4. ______ describes corporate giving that supports a good environment in which to do business.

A. Philanthropy

B. Stewardship

C. Enlightened self-interest

D. Institutional advancement

Answer Location: 13-2: Summarize the primary motivations of corporate, foundation, and individual donors.

Cognitive Domain: Knowledge

Answer Location: Understanding Corporate Philanthropy

Difficulty Level: Easy

5. What type of giving is done in support of a corporation’s business goals?

A. gifts-in-kind

B. planned giving

C. charitable gift annuity

D. strategic philanthropy

Answer Location: 13-2: Summarize the primary motivations of corporate, foundation, and individual donors.

Cognitive Domain: Knowledge

Answer Location: Understanding Corporate Philanthropy

Difficulty Level: Easy

6. ______ are required to expend a minimum of 5% of investment value for either grants or operating expenses.

A. Corporations

B. Foundations

C. Religious entities

D. Charitable remainder trusts

Answer Location: 13-2: Summarize the primary motivations of corporate, foundation, and individual donors.

Cognitive Domain: Knowledge

Answer Location: Foundation Giving

Difficulty Level: Easy

7. What type of foundation generally does not make grants to other organizations?

A. family

B. corporate

C. operating

D. independent

Answer Location: 13-2: Summarize the primary motivations of corporate, foundation, and individual donors.

Cognitive Domain: Knowledge

Answer Location: Foundation Giving

Difficulty Level: Easy

8. The concept of ______ states individuals are driven by their nature to improve the human condition.

A. altruism

B. solicitation

C. self-directed giving

D. enlightened self-interest

Answer Location: 13-2: Summarize the primary motivations of corporate, foundation, and individual donors.

Cognitive Domain: Knowledge

Answer Location: Motivations of Individual Donors

Difficulty Level: Easy

9. The inclination to give resources based on the ability to make history is referred to as ______.

A. cultivation

B. beneficence

C. hyperagency

D. identification

Answer Location: 13-2: Summarize the primary motivations of corporate, foundation, and individual donors.

Cognitive Domain: Knowledge

Answer Location: Motivations of Individual Donors

Difficulty Level: Easy

10. What term below is used to identify potential donors?

A. cultivation

B. prospect research

C. charity philanthropy

D. philanthropic management

Learning Objective: 13-3: Explain the fundraising process.

Cognitive Domain: Comprehension

Answer Location: Identifying and Qualifying Prospects

Difficulty Level: Medium

11. Which type of giving is expected to grow substantially in the coming decades?

A. bequests

B. corporate

C. tax efficacy

D. foundation

Learning Objective: 13-5: Explain common planned giving vehicles and the types of donors to which each may be most attractive.

Cognitive Domain: Knowledge

Answer Location: Soliciting the Gift

Difficulty Level: Easy

12. When soliciting gifts, the more ______ contact, the better it is.

A. political

B. personal

C. insistent

D. guilt-evoking

Learning Objective: 13-3: Explain the fundraising process.

Cognitive Domain: Knowledge

Answer Location: Soliciting the Gift

Difficulty Level: Easy

13. What formal document identifies the mutual understandings of the donor and the organization?

A. gift agreement

B. donor statement

C. gift standards charter

D. bequest notifications

Learning Objective: 13-3: Explain the fundraising process.

Cognitive Domain: Knowledge

Answer Location: Stewarding the Gift and the Relationship

Difficulty Level: Easy

14. What model depicts how individuals develop their giving relationship with an organization?

A. giving life cycle

B. gift standards chart

C. fundraising pyramid

D. philanthropy flowchart

Learning Objective: 13-3: Explain the fundraising process.

Cognitive Domain: Knowledge

Answer Location: Individual Donor Life Cycles

Difficulty Level: Easy

15. According to Dunlop, what type of gifts do individuals make to meet a nonrecurring need of an organization?

A. regular

B. special

C. ultimate

D. principal

Learning Objective: 13-2: Summarize the primary motivations of corporate, foundation, and individual donors.

Cognitive Domain: Knowledge

Answer Location: Individual Donor Life Cycles

Difficulty Level: Easy

16. What is a gift given after one’s death called?

A. bequest

B. testament

C. living asset

D. ultimate donation

Learning Objective: 13-5: Explain common planned giving vehicles and the types of donors to which each may be most attractive.

Cognitive Domain: Knowledge

Answer Location: Chapter Introduction

Difficulty Level: Easy

17. Which phase is a campaign in following the kickoff?

A. quiet

B. noisy

C. public

D. planning

Learning Objective: 13-6: Describe the characteristics of campaigns.

Cognitive Domain: Knowledge

Answer Location: Campaigns

Difficulty Level: Easy

18. Which type of fund is created during a campaign’s quiet phase?

A. major

B. nucleus

C. nest egg

D. wrap-up

Learning Objective: 13-6: Describe the characteristics of campaigns.

Cognitive Domain: Knowledge

Answer Location: Campaigns

Difficulty Level: Easy

19. An important tool in planning and managing a campaign is the ______.

A. strategic plan

B. contact report

C. gift standards chart

D. fundraising scaffold

Learning Objective: 13-6: Describe the characteristics of campaigns.

Cognitive Domain: Knowledge

Answer Location: Campaigns

Difficulty Level: Easy

20. What fundraising subspecialty encompasses all the back-office operations such as gift recording and acknowledgment?

A. planning

B. stewardship

C. advancement services

D. administration

Learning Objective: 13-7: Define key terms and concepts related to management of fundraising programs.

Cognitive Domain: Comprehension

Answer Location: Advancement Services

Difficulty Level: Medium

21. An individual donor gave a gift to the American Red Cross (ARC) to provide clothing for individuals who lost their homes due to a flood. At the same time, a local foundation provided the ARC funds to develop plans for a new housing subdivision away from the flood zone. The individual donor’s gift is an example of ______, while the foundation’s gift is an example of ______.

A. charity; philanthropy

B. a grant; an annual fund

C. bequest; planned giving

D. entrepreneurship; a trust

Learning Objective: 13-1: Define key terms and concepts related to fundraising and philanthropy.

Cognitive Domain: Application

Answer Location: Definitions and Distinctions

Difficulty Level: Medium

22. Which term was originally used to describe long-term fundraising efforts to build institutions?

A. development

B. building funds

C. planned giving

D. community chest

Learning Objective: 13-1: Define key terms and concepts related to fundraising and philanthropy.

Cognitive Domain: Comprehension

Answer Location: Definitions and Distinctions

Difficulty Level: Medium

23. A business supply company gave free office supplies to a nonprofit organization. What type of gift is this?

A. trust

B. grant

C. bequest

D. gift-in-kind

Learning Objective: 13-1: Define key terms and concepts related to fundraising and philanthropy.

Cognitive Domain: Comprehension

Answer Location: Understanding Corporate Philanthropy

Difficulty Level: Medium

24. A donor made a large financial gift to the hospice that provided a family member with end-of-life care in gratitude for its service. The donor would be classified as a ______ donor.

A. devout

B. repayer

C. socialite

D. invested

Learning Objective: 13-2: Summarize the primary motivations of corporate, foundation, and individual donors.

Cognitive Domain: Application

Answer Location: Motivations of Individual Donors

Difficulty Level: Medium

25. An advancement officer is compiling a list of the organization’s alumni. Which step of the fund-raising process is the officer performing?

A. sorting

B. soliciting

C. stewarding

D. prospecting

Learning Objective: 13-3: Explain the fundraising process.

Cognitive Domain: Comprehension

Answer Location: Identifying and Qualifying Prospects

Difficulty Level: Medium

26. A tool to evaluate the efficiency of a fund-raising effort is a ______.

A. bar chart

B. linear equation

C. covariate relationship

D. cost-per-dollar-raised ratio

Learning Objective: 13-3: Explain the fundraising process.

Cognitive Domain: Knowledge

Answer Location: Fundraising Efficiency and Effectiveness

Difficulty Level: Easy

27. According to the financial pyramid, what are financial gifts of $1 million or more called?

A. special

B. regular

C. ultimate

D. principal

Learning Objective: 13-1: Define key terms and concepts related to fundraising and philanthropy.

Cognitive Domain: Knowledge

Answer Location: The Fundraising Process

Difficulty Level: Easy

28. A nonprofit organization used social media to develop a large network of donors. What type of fund-raising effort did the nonprofit use?

A. direct email

B. telemarketing

C. crowdfunding

D. personal solicitation

Learning Objective: 13-3: Explain the fundraising process.

Cognitive Domain: Comprehension

Answer Location: Soliciting the Gift

Difficulty Level: Medium

29. A nonprofit mailed each of its donors an annual report. This action is an example of which step of the fund-raising process?

A. qualifying prospects

B. efficiency and effectiveness

C. identifying organizational goals

D. stewarding the gift and the relationship

Learning Objective: 13-3: Explain the fundraising process.

Cognitive Domain: Comprehension

Answer Location: Stewarding the Gift and the Relationship

Difficulty Level: Medium

30. A married couple invested in an insurance policy with their college alumni association being the beneficiary. This action is an example of which type of giving?

A. regular

B. efficient

C. deferred

D. expectancy

Learning Objective: 13-5: Explain common planned giving vehicles and the types of donors to which each may be most attractive.

Cognitive Domain: Application

Answer Location: Planned Giving

Difficulty Level: Medium

True/False

1. Human service organizations are highly reliant on individual giving.

Learning Objective: 13-4: Identify the advantages and disadvantages of various solicitation methods.

Answer Location: Chapter Introduction

Cognitive Domain: Knowledge

Difficulty Level: Easy

2. Private gifts cannot be used for organizational capacity building.

Learning Objective: 13-5: Explain common planned giving vehicles and the types of donors to which each may be most attractive.

Cognitive Domain: Knowledge

Answer Location: Chapter Introduction

Difficulty Level: Easy

3. The largest source of gifts comes from private individuals.

Learning Objective: 13-4: Identify the advantages and disadvantages of various solicitation methods.

Cognitive Domain: Knowledge

Answer Location: Chapter Introduction

Difficulty Level: Easy

4. Development is attention to the long-term growth of an organization.

Learning Objective: 13-1: Define key terms and concepts related to fundraising and philanthropy.

Cognitive Domain: Knowledge

Answer Location: Definitions and Distinctions

Difficulty Level: Easy

5. The motivations of individual donors are more complex than the motives of corporations.

Learning Objective: 13-2: Summarize the primary motivations of corporate, foundation, and individual donors.

Cognitive Domain: Knowledge

Answer Location: Chapter Introduction

Difficulty Level: Easy

6. It is more important to identify prospects before identifying fund-raising priorities.

Learning Objective: 13-3: Explain the fundraising process.

Cognitive Domain: Knowledge

Answer Location: The Fundraising Process

Difficulty Level: Easy

7. A campaign involves two phases: the quiet phase and the public phase.

Learning Objective: 13-6: Describe the characteristics of campaigns.

Cognitive Domain: Knowledge

Answer Location: Campaigns

Difficulty Level: Easy

8. The cost of a fund-raising effort is not as important as the amount of money it raised.

Learning Objective: 13-3: Explain the fundraising process.

Cognitive Domain: Knowledge

Answer Location: Fundraising Efficiency and Effectiveness

Difficulty Level: Easy

9. A restricted gift is designated by the donor for a specific purpose.

Learning Objective: 13-3: Explain the fundraising process.

Cognitive Domain: Knowledge

Answer Location: Ethics and Professional Standards

Difficulty Level: Easy

10. The return on investment in fund-raising is a better measure of effectiveness than a cost–benefit ratio.

Learning Objective: 13-7: Define key terms and concepts related to management of fundraising programs.

Cognitive Domain: Knowledge

Answer Location: Chapter Summary

Difficulty Level: Easy

Short Answer

1. Compare and contrast the two approaches to giving.

Learning Objective: 13-1: Define key terms and concepts related to fundraising and philanthropy.

Cognitive Domain: Analysis

Answer Location: Definitions and Distinctions

Difficulty Level: Hard

2. Differentiate the terms “fund-raising” and “development” and provide an example of each.

Learning Objective: 13-1: Define key terms and concepts related to fundraising and philanthropy.

Cognitive Domain: Comprehension

Answer Location: Definitions and Distinctions

Difficulty Level: Medium

3. Determine the three largest sources of gifts and provide an example of each.

Learning Objective: 13-2: Summarize the primary motivations of corporate, foundation, and individual donors.

Cognitive Domain: Application

Answer Location: Motivations for Giving

Difficulty Level: Medium

4. Name the seven categories of donors as identified by Prince and File. Give a brief description of each category.

Learning Objective: 13-2: Summarize the primary motivations of corporate, foundation, and individual donors.

Cognitive Domain: Comprehension

Answer Location: Motivations for Giving

Difficulty Level: Medium

5. Investigate and explain how tax rates affect charitable giving.

Learning Objective: 13-2: Summarize the primary motivations of corporate, foundation, and individual donors.

Cognitive Domain: Analysis

Answer Location: Motivations for Giving

Difficulty Level: Hard

6. Select a nonprofit organization that you are familiar with and explain how that organization applies the six steps of the fund-raising process.

Learning Objective: 13-3: Explain the fundraising process.

Cognitive Domain: Application

Answer Location: The Fundraising Process

Difficulty Level: Medium

7. Identify two gift solicitation methods and discuss the advantages and disadvantages of each

Learning Objective: 13-4: Identify the advantages and disadvantages of various solicitation methods.

Cognitive Domain: Comprehension

Answer Location: Soliciting the Gift

Difficulty Level: Medium

8. Analyze unethical relationships that can arise in fund-raising.

Learning Objective: 13-8: Identify ethical issues related to fundraising.

Cognitive Domain: Analysis

Answer Location: Ethics and Professional Standards

Difficulty Level: Hard

9. Justify a reason why a nonprofit organization should not accept a financial gift.

Learning Objective: 13-8: Identify ethical issues related to fundraising.

Cognitive Domain: Analysis

Answer Location: Ethics and Professional Standards

Difficulty Level: Hard

10. Outline the steps involved in organizing a fundraising activity.

Learning Objective: 13-3: Explain the fundraising process.

Answer Location: The Fundraising Process

Cognitive Domain: Knowledge

Difficulty Level: Easy

11. Compare and contrast the terms “fundraising” and “campaigns.”

Learning Objective: 13-1: Define key terms and concepts related to fundraising and philanthropy.

Cognitive Domain: Analysis

Answer Location: Chapter Introduction

Difficulty Level: Hard

12. Analyze social relationships on their influences on traditional fund-raising strategies.

Learning Objective: 13-4: Identify the advantages and disadvantages of various solicitation methods.

Cognitive Domain: Analysis

Answer Location: The Fundraising Process

Difficulty Level: Hard