Certified Fund Raising Executive (CFRE) Practice Test

What is the final step in expanding a fundraising operation?

1. Developing a marketing strategy

2. Establishing a planned giving program

3. Recruiting additional volunteers

4. Launching a fundraising event

The correct answer is: Establishing a planned giving program

The final step in expanding a fundraising operation is establishing a planned giving program. This is because a planned giving program allows for long-term financial sustainability by encouraging donors to leave a legacy through bequests and other forms of deferred giving. It facilitates the cultivation of relationships with major donors and can significantly stabilize future funding streams, thereby enabling an organization to effectively plan for growth. While developing a marketing strategy, recruiting additional volunteers, and launching a fundraising event are all essential components in the fundraising process, they typically occur at earlier stages of expansion. A marketing strategy is critical for awareness and outreach, volunteers help in the execution of various fundraising activities, and events can serve as both engagement and fundraising opportunities. However, establishing a planned giving program is a strategic, forward-thinking initiative that supports ongoing financial health and future growth, making it the culmination of current fundraising efforts.