Certified Fund Raising Executive (CFRE) Practice Test

What is the best first step in the process of cultivating major gifts?

1. Host a fundraising event

2. Identify prospective donors

3. Send out mass appeal letters

4. Develop a new marketing strategy

The correct answer is: Identify prospective donors

The best first step in the process of cultivating major gifts is identifying prospective donors. This foundational step is crucial because understanding who your potential supporters are forms the basis for any successful fundraising strategy. By identifying prospective donors, organizations can tailor their approaches to align with the interests, motivations, and giving capacities of each individual. This process involves researching and analyzing past donation behaviors, personal connections, and philanthropic interests to create a targeted list of individuals who are most likely to contribute at a major gift level. Once prospective donors are identified, organizations can then engage in meaningful conversations and relationship-building activities that deepen connections and foster a sense of trust and commitment. In contrast, hosting a fundraising event, sending out mass appeal letters, or developing a new marketing strategy are actions that might come later in the cultivation process. Engaging with prospective donors directly is much more effective than general outreach efforts, as it allows for a personalized approach that resonates with individual donor motivations.