Certified Fund Raising Executive (CFRE) Practice Test

Who are generally regarded as the most favorable prospects for annual gift support?

1. Corporations

2. Foundations

3. Individuals

4. Government agencies

The correct answer is: Individuals

Individuals are generally regarded as the most favorable prospects for annual gift support due to their personal connection and willingness to contribute to causes that resonate with them. Individuals tend to have the most flexibility in their giving, often making decisions based on their personal beliefs, experiences, and emotional ties to an organization or mission. They also can respond to appeals that may not be directly related to formal proposals or criteria, unlike foundations and corporations, which typically have defined giving guidelines and may prioritize larger, more strategic funding initiatives over annual donations. Furthermore, individuals can be cultivated as loyal supporters over time, leading to increased contributions through personal relationships and engagement. They often feel a sense of impact and fulfillment from their donations, which motivates ongoing and even increased support year after year. While corporations and foundations can provide significant funding, their contributions may be less frequent and more project-oriented, making individual donors critical for sustaining annual operational costs and directly funding organizational missions. Government agencies typically provide grants and funding based on compliance with specific program requirements, which are often not as flexible or directly aligned with annual gift support as individual contributions. Therefore, individuals stand out as the most consistent and reliable avenue for annual giving.