Due diligence for major gifts might sound unnecessary, but we can assure you it’s not! A robust due diligence policy will empower your team and organisation to make consistent, confident decisions about accepting or declining donations. It means you’re saying yes to the right gifts and not putting your organisation at risk. Getting due diligence right for major gifts protects your reputation, complies with regulations and is a key part of best-practice fundraising.
Protect your reputation
Due diligence protects your organisation’s reputation by ensuring you’re not aligning with donors or corporate sponsors with ties to areas that could harm your charity’s credibility or be in conflict with your charitable objectives. A partnership that conflicts with your vision, values or mission can damage public trust and alienate your supporters.
If the worst happens and a scandal breaks, it’s not just your reputation that’s at stake. It can also damage staff and volunteer morale and limit future funding opportunities. Doing the legwork upfront flags any potential risks and looks good to your other donors.
Comply with regulations
Charities are expected to check the source of their donations and ensure they’re not linked to financial crime or unethical practices. Failure to carry out due diligence checks can lead to investigations and fines, and erode public trust in your organisation. Some of the regulations and codes you might need to refer to when putting together your due diligence policy include:
- The Charities Act
- Data Protection Act and GDPR
- Freedom of Information Act
- The Bribery Act 2010
- Finance Act 2011
- Proceeds of Crime Act 2002
- Counter Terrorism Act 2008
- The Charities and Trustee Investment (Scotland) Act 2005
- The Charities Act (NI) 2008
- Fundraising Code of Practice
Best-practice fundraising
Adhering to best practice fundraising principles can help your organisation stand out from the crowd. Protecting your charity’s integrity as much as its bottom line means your donors know they are supporting an organisation with good governance and integrity.
By demonstrating a commitment to due diligence, you’ll build trust with your supporters and encourage long-term relationships.
Want to learn more about due diligence and gift acceptance for major gifts?
Join our free webinar on Thursday, 27th November. We’ll cover:
- The role of due diligence in fundraising
- The fundamentals of gift acceptance and due diligence
- Regulations and codes
- Due Diligence research frameworks
- Research resources for Due Diligence research
- Tips and tools for conducting due diligence research