Certified Fund Raising Executive (CFRE) Practice Test

Why is it important to maintain records of donations?

1. To track donor demographics

2. To measure fundraising performance

3. To ensure that donors are acknowledged properly

4. To assess volunteer contributions

The correct answer is: To ensure that donors are acknowledged properly

Maintaining records of donations is crucial for ensuring that donors are acknowledged properly. Proper acknowledgment serves multiple purposes: it demonstrates gratitude, strengthens the relationship between the organization and the donor, and encourages future contributions. When organizations keep accurate and comprehensive records, they can personalize thank-you notes, recognize recurring donors, and provide necessary tax receipts, thus enhancing the donor experience and fostering a culture of appreciation. This acknowledgment is a vital aspect of donor stewardship, which can lead to increased trust and loyalty from supporters. While tracking donor demographics, measuring fundraising performance, and assessing volunteer contributions are all important activities that contribute to an organization's overall strategy, the primary reason for maintaining donation records centers around the recognition and appreciation of individual donors. This not only impacts donor retention but can also have a significant effect on securing future donations, forming a reliable support base for the organization.