Certified Fund Raising Executive (CFRE) Practice Test

What is the main focus of a gift acknowledgment letter?

1. Fundraising cost reduction

2. Detailed project descriptions

3. Expressing gratitude to and cultivating the donor

4. Providing tax information

The correct answer is: Expressing gratitude to and cultivating the donor

A gift acknowledgment letter primarily serves to express gratitude to the donor while also cultivating the relationship for future support. Its main function is to acknowledge the gift received and show appreciation for the donor's generosity, which is essential in fostering a positive ongoing relationship between the donor and the organization. In doing so, the letter not only recognizes the donor's contribution but can also reinforce the impact of their gift on the organization's mission. This acknowledgment plays a crucial role in donor stewardship, enhancing engagement and laying the groundwork for future giving. While providing tax information is indeed a component of such letters, the overarching aim is to express gratitude and build a rapport with the donor, which makes it the most significant focus of the acknowledgment letter. Detailed project descriptions, while informative, do not take precedence over the essential act of thanking the donor. Fundraising cost reduction is not a focus of acknowledgment letters, as their intention is not to address financial aspects but rather to strengthen the donor relationship.