Certified Fund Raising Executive (CFRE) Practice Test

What is the initial step in developing a fundraising marketing plan?

1. Setting a budget for marketing activities

2. Analyzing internal resources, the external environment, and macro factors

3. Creating a list of potential donors

4. Developing key messages for outreach

The correct answer is: Analyzing internal resources, the external environment, and macro factors

The initial step in developing a fundraising marketing plan involves analyzing internal resources, the external environment, and macro factors. This foundational analysis allows organizations to understand their strengths, weaknesses, opportunities, and threats (SWOT analysis). It is critical to assess the current market conditions, existing resources, and potential challenges that the organization may face. Understanding internal resources entails looking at the organization's capabilities, staff, and financial resources, while evaluating the external environment requires investigating factors such as economic conditions, donor trends, and potential competitors. Macro factors might include societal trends and demographic shifts that can influence fundraising efforts. By starting with this comprehensive analysis, organizations can position their fundraising efforts more strategically, ensuring that their marketing plan aligns with their capabilities and the needs of the donor community. This informed approach creates a solid foundation that enables further steps, such as budgeting, donor identification, and message development, to be undertaken more effectively.