Certified Fund Raising Executive (CFRE) Practice Test

Which fundraising technique is likely the most cost-effective for an annual campaign?

1. A mass marketing approach

2. A fundraising event

3. Personal visit from a volunteer

4. Direct mail solicitations

The correct answer is: Personal visit from a volunteer

A personal visit from a volunteer is often the most cost-effective fundraising technique for an annual campaign due to its high potential for engagement and relationship building. Personal interactions can create a strong emotional connection between the donor and the organization, leading to higher levels of giving compared to more impersonal approaches. This method leverages the trust and support of volunteers who can effectively communicate the mission and impact of the organization, which can inspire donors to contribute at a higher level. Additionally, the personal touch of a volunteer visit can foster long-term donor relationships, resulting in repeat contributions and further involvement, which is ultimately more valuable than the initial financial support received. While it may require a time investment from the volunteer, the overall costs typically remain lower than organizing large fundraising events or executing a mass marketing campaign, which often involves significant promotional expenses and administrative overhead. In contrast, mass marketing approaches and fundraising events can incur substantial costs in terms of materials, venue, catering, and staff time, making them less cost-effective. Similarly, direct mail solicitations can be costly due to printing and postage, and they frequently yield lower response rates compared to personal interactions.