Certified Fund Raising Executive (CFRE) Practice Test

What would be the best resource management strategy for a chief fundraising professional if 90% of gifts come from 10% of donors?

1. Implementing cultivation and fundraising strategies targeted to the top donors and prospects

2. Expanding outreach to all potential donors equally

3. Focusing primarily on increasing online donations

4. Enhancing marketing efforts to the general public

The correct answer is: Implementing cultivation and fundraising strategies targeted to the top donors and prospects

The best resource management strategy for a chief fundraising professional in a situation where 90% of gifts come from just 10% of donors is to implement cultivation and fundraising strategies targeted to the top donors and prospects. This approach acknowledges the significant impact that a small group of donors has on the overall fundraising success. By focusing efforts on these key individuals, the professional can tailor engagement strategies that deepen relationships, increase donor loyalty, and potentially secure larger gifts. This targeted approach allows for the efficient allocation of limited resources, maximizing the return on investment by concentrating time and effort on the donors who contribute the most. Effective cultivation may include personalized communication, exclusive events, or opportunities for these donors to become more involved with the organization’s mission. By understanding their motivations and preferences, the fundraiser can create a more compelling case for support that resonates with these key contributors. In contrast, expanding outreach to all potential donors equally may dilute efforts and spread resources too thin, potentially overlooking the critical needs and preferences of high-value donors. Similarly, focusing primarily on increasing online donations or enhancing marketing efforts to the general public might not directly address the specific strategies required to engage the top-tier donors who are already providing the majority of the funding. These broader strategies could bring in new donors, but they