Certified Fund Raising Executive (CFRE) Practice Test

To retain donors and encourage increased giving, what is most important to ensure?

1. They receive a regular newsletter

2. They are invited to special events

3. They understand how their gift will be used

4. They can meet with staff occasionally

The correct answer is: They understand how their gift will be used

To retain donors and encourage increased giving, it is vital that they understand how their gift will be used. This understanding fosters a sense of connection and empowerment among donors, allowing them to see the impact of their contributions. When donors are aware of the specific outcomes and benefits provided by their donations, they are more likely to feel valued and engaged, which enhances their loyalty to the organization. Moreover, clarity about the usage of their funds can motivate donors to continue giving at previous levels or even increase their contributions, as they feel their investments are making a tangible difference. This transparency builds trust and reinforces the relationship between the donor and the organization, creating an environment where donors feel informed and appreciated. While other options such as regular newsletters, invitations to events, and opportunities to meet staff can certainly enhance donor engagement, they do not provide the same level of impact as ensuring donors understand the direct implications and benefits of their gifts.