Certified Fund Raising Executive (CFRE) Practice Test

What is the primary reason for establishing giving levels in fundraising?

1. Encourage larger gifts

2. Increase donor engagement

3. Enhance marketing strategies

4. Minimize administrative costs

The correct answer is: Encourage larger gifts

Establishing giving levels in fundraising primarily serves to encourage larger gifts. By defining specific tiers or levels of giving, organizations create a framework that helps donors understand the impact of their contributions while also suggesting a pathway for escalating their support. These tiers can motivate donors to give at higher levels, as they often articulate what each level of contribution can achieve, making the act of giving feel more meaningful and impactful. For example, when donors see a tier that specifies how their contribution can fund a specific project or initiative, it can evoke a sense of urgency and encourage them to consider giving more to reach a higher impact tier. Additionally, this structured approach not only recognizes and appreciates donors' contributions at each level but also fosters a culture of philanthropy where donors feel inspired to advance to the next level in their giving, thereby enhancing the overall fundraising efforts of the organization. While increasing donor engagement, enhancing marketing strategies, and minimizing administrative costs can also be beneficial outcomes, they are secondary to the primary purpose of motivating donors to give more significantly.