Certified Fund Raising Executive (CFRE) Practice Test

To assess the progress in improving gift support, it is best to compare this year's gift income with what?

1. The previous quarter's income

2. Last year's gift income

3. The organization’s overall budget

4. Projected income for the next year

The correct answer is: Last year's gift income

Comparing this year's gift income with last year's gift income provides a meaningful perspective on the organization's fundraising performance over time. This approach allows for an analysis of growth or decline in giving, accounting for factors like inflation and changing donor behavior. By using the previous year's figures, organizations can identify trends, assess the effectiveness of their fundraising strategies, and make informed decisions for the current year's campaigns. In contrast, evaluating income against the previous quarter may not provide a comprehensive view since seasonal variations and specific campaigns can influence shorter-term results. Looking at the organization’s overall budget could dilute the focus on just gift income, as it encompasses all financial activities, not solely fundraising efforts. Estimating projected income for the next year does not reflect past performance, making it less useful for assessing progress based on established patterns. Therefore, the comparison with last year's gift income is the most effective method for evaluating current fundraising success.