Certified Fund Raising Executive (CFRE) Practice Test

To keep donors engaged effectively, which of the following is most important?

1. Organizing fundraising events

2. Communicating about community needs

3. Handling donor transactions

4. Providing tax benefits

The correct answer is: Communicating about community needs

Keeping donors engaged effectively is fundamentally about creating a connection between the donors and the mission of the organization. Communicating about community needs fosters that connection by ensuring donors understand the impact of their contributions. It highlights the ongoing challenges and how the organization intends to address them, which can inspire and motivate donors to continue their support. When donors feel informed and involved in the organization's mission and its relevance to the community, they are more likely to deepen their relationship and commitment to funding. This ongoing dialogue reinforces the significance of the donor's role and demonstrates the organization's transparency and accountability, enhancing trust and loyalty. While organizing fundraising events, handling donor transactions, and providing tax benefits are all important aspects of fundraising and donor management, they do not focus as directly on creating a lasting emotional and intellectual connection with the donors. Organizing events may help in networking, handling transactions ensures smooth operations, and tax benefits can be a motivating factor for some, but none of these elements addresses the core of engagement as effectively as communicating pressing community needs does. Such communication not only informs but also invites donors to be a part of a solution, making them feel integral to the organization's mission.