While charities are required to carry out due diligence checks before accepting gifts from funders and significant donors, the excitement of receiving a large or unexpected gift can sometimes leave due diligence on the back foot. Here are six things to consider when designing or updating your due diligence policy.
Do you already have a policy in place?
Charities should have a gift acceptance policy in place before accepting gifts from philanthropic partners and major donors. Having the right policy and procedures around gift acceptance is essential to successful and effective major gift fundraising. Publishing your policy on your website is good practice and shows you are open with your potential donors about the research you may be carrying out.
When was the last time you reviewed your policy?
The policy you developed a decade ago may not stand up to scrutiny today. Things are changing fast. Organisations that you might once have been happy to be affiliated with may no longer be aligned with your charity’s vision.
Is your research up to date?
You may have a policy in place, but are you relying on out of date research for your assessments of existing donors? Keep your research current and up to date on your major supporters. Doing the research in advance of accepting gifts will make sure you avoid any issues down the road, allowing you to focus on building rewarding relationships with your philanthropic partners.
Due diligence goes two ways
Individuals and organisations that are thinking about supporting your charity, will also be doing their research before committing to fund or approaching you. This way they can ensure you are a sound and viable partner.
Do you have the in-house skills to review or develop your diligence policies and procedures?
If not, Prospecting for Gold can work with you to get your due diligence and gift acceptance policy in place. We’ll also help to make sure that your procedures deliver the research you need to assess your potential supporters.
And finally, do you have the capacity to do the research you need for your assessments?
At Prospecting for Gold, we’ve developed a framework for researching prospects for due diligence. This incorporates the key information most organisations need to assess a donor against their gift acceptance requirements. This can be for individual corporate or trust prospects and focuses on reviewing key areas of risk. Using a checklist of reputable sources, we produce a briefing on each prospect, looking at their key characteristics and identifying risks for your organisation.
Whether it be for gifts from individuals, trusts, companies, or sponsorship and other partnership opportunities, knowing that the donor meets your ethical standards is a critical part of the decision-making process. For more information on how we can help with your due diligence policies and procedures get in touch with us today by emailing info@prospectingforgold.co.uk or calling us on 01491 577311.