Certified Fund Raising Executive (CFRE) Practice Test

Question: 1 / 400

What is the primary reason for a charity to conduct its operations ethically?

To attract new donors

To ensure compliance with legal standards

To maintain the public trust

Maintaining public trust is fundamental for any charity's long-term success. Ethical operations foster transparency and integrity in the charity's activities, which in turn builds confidence among donors, beneficiaries, and the community. When a charity acts ethically, it reassures stakeholders that funds are being used appropriately and that the organization is committed to its mission. This trust not only encourages continued support from existing donors but also draws in new supporters who are increasingly mindful of ethical considerations in their giving decisions.

While attracting new donors, ensuring compliance with legal standards, and enhancing the charity's reputation are important aspects of a charity's operational strategy, they often depend on the underlying trust established through ethical practices. Without public trust, a charity may struggle to achieve its goals, as potential and current supporters are less likely to engage with or support an entity they do not trust. Hence, maintaining public trust is the cornerstone upon which successful fundraising and charitable work is built.

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To enhance the charity's reputation

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