Certified Nonprofit Professional Practice Exam

Fund development should be considered a:

1. Primary operation of the organization

2. Separate activity independent of operations

3. Minor aspect of overall strategy

4. Responsibility limited to the board

The correct answer is: Separate activity independent of operations

Fund development is an essential component of a nonprofit organization's overall strategy and should not be seen as a separate activity that operates independently from other functions. In fact, considering it a distinct operation can lead to disconnection from the organization’s mission, programs, and overall goals. Effective fund development is integrated with the mission and vision of the organization, ensuring that all fundraising efforts align with the broader objectives. Viewing fund development as a separate activity fails to acknowledge that fundraising is inherently tied to the organization’s operations, programs, and the community it serves. It is vital for securing the resources necessary to sustain and grow these efforts. A more appropriate view is that fund development should be treated as a primary operation of the organization, embedded in all activities and strategic planning. Moreover, recognizing fund development as a minor aspect of overall strategy or limiting it to the board diminishes its significance, as it is a collective responsibility that involves staff, volunteers, and community stakeholders. Understanding fund development in its rightful context is essential for achieving financial sustainability and long-term impact.