CFRE Practice Exam Vocabulary

Essential vocabulary terms, acronyms, and fundraising definitions derived directly from CFRE exam practice materials.

SWOT Analysis

A marketing and strategic framework that evaluates an organization's internal Strengths and Weaknesses alongside external Opportunities and Threats.

LAI

A prospect rating and research acronym that stands for Linkage, Ability, and Interest.

Hidden Costs in a Capital Project

Unanticipated or understated campaign expenditures, specifically identified as fundraising expenses, donor attrition, and inflation.

Donor Rating

The evaluation process of determining a prospective donor's potential capacity and establishing the financial range of gifts they will reasonably consider.

Integrated Approach to Fundraising

A comprehensive strategy characterized by matching organizational cases with specific constituencies and establishing clear goals for each segment and campaign.

Commemorative Gifts

Naming or recognition gift opportunities offered to both large and small donors within a capital campaign program.

Cause-Related Marketing

A joint corporate-nonprofit promotional initiative whose immediate corporate objective is to enhance the corporate image.

Proxy Statement

A publicly traded corporation's official regulatory filing that serves as an indicator of an executive prospective donor's compensation and ability to make a gift.

Letter of Intent / Pledge

A non-binding agreement in major gift fundraising outlining a donor's planned gift or bequest intentions and the associated payment terms.

Annual Report

A regularly published organizational publication summarizing the financial results and programmatic status of an institution.

Case Statement

A persuasive fundraising document used in ongoing programs and campaigns whose logical foundation rests upon the organization's plans for the future.

Values

An enduring belief that specific modes of conduct are personally or socially preferable to others.

Statement of Income and Expenditure

A primary financial statement that reports the financial results of an organization's operations over a specific accounting period.

Recognition Society

A formal donor acknowledgement group established for the purpose of bonding the organization and its contributors together.

Cultivation

The systematic relationship-building process involving actions such as arranging prospective donor meetings with leaders, writing personal notes, and conducting facility tours.

LYBUNT

An annual giving terminology acronym designating a donor who gave Last Year But Unfortunately Not This year.

Prospect Research

The formal practice of collecting and analyzing financial, demographic, and biographical data on individuals or entities with the ability and interest to support a charitable cause.

Gift Acceptance Policy

An essential, board-approved institutional guideline that formally reserves the organization's legal and ethical right to accept or decline proposed contributions.

Campaign-Oriented Structure

A fundraising structure focused primarily on organizational needs that targets all constituencies using intensive timetables, aggressive promotion, and monetary targets.

Market Segmentation

The strategic division of an organization's broader public audience into distinct, identifiable submarkets or constituent segments.

Board-Designated Funds

Institutional assets subjected solely to an internal restriction created by the governing board, which can be modified or repurposed by future board actions.