Certified Fund Raising Executive (CFRE) Practice Test

Which aspect is crucial for considering a donor's potential to give?

1. Their personal connections to other donors

2. Their previous charitable contributions

3. Their wealth indicators and capacity

4. Their interest in the organization’s mission

The correct answer is: Their wealth indicators and capacity

Understanding a donor's potential to give largely hinges on their wealth indicators and capacity. This is because wealth indicators provide insight into the financial resources a donor may have at their disposal for philanthropy. Factors such as income level, assets, property ownership, and overall financial health are considered to assess how much a donor can realistically contribute over time. While previous charitable contributions and personal connections to other donors can provide context about past behavior and network influences, they do not directly reflect the donor’s current capacity for giving. Similarly, interest in the organization’s mission is essential for ensuring the donor is aligned with the cause, but it does not guarantee that they have the financial ability to contribute at a significant level. Therefore, evaluating wealth indicators is a fundamental component in estimating a donor's potential and ensuring that fundraising strategies are effectively tailored to match their giving capacity.