Certified Fund Raising Executive (CFRE) Practice Test

How should a fundraiser approach the concept of donor retention?

1. By offering competitive donor benefits

2. By focusing on acquisition over retention

3. By establishing a personalized engagement plan

4. By setting lower fundraising goals

The correct answer is: By establishing a personalized engagement plan

A fundraiser should approach donor retention by establishing a personalized engagement plan because this strategy directly addresses the individual needs and preferences of donors. Engaging donors in a meaningful and tailored manner fosters a sense of connection and loyalty, making them more likely to continue their support over time. Personalization demonstrates that the organization values each donor as an individual, not just as a source of funding. This can include customized communications, recognition of their specific contributions, and invitations to exclusive events that align with their interests. By doing so, a fundraiser reinforces the relationship with donors and enhances their commitment, ultimately leading to increased retention rates. In contrast, offering competitive donor benefits may attract new donors but does not build the deeper connection necessary for retention. Focusing on acquisition over retention can lead to a revolving door of donors, where organizations are constantly seeking new supporters rather than nurturing existing relationships. Setting lower fundraising goals might reduce pressure in the short term, but it does not actively contribute to cultivating long-term donor loyalty or engagement. Thus, a personalized engagement plan is key to sustaining donor relationships and encouraging continued contributions.