Due diligence research goes hand in hand with best practice major gift fundraising, but when you’re spinning lots of plates, it can take a backseat. If your due diligence and gift acceptance policies are sitting on a (metaphorical) shelf somewhere gathering dust, you might be putting your organisation’s reputation on the line. Here are four signs it’s time to update your due diligence research.
Your polices haven’t been updated in years
We speak to a lot of organisations that put their due diligence and gift acceptance policies in place years ago and never looked at them again. It happens. But it won’t protect you if you say yes to a gift you shouldn’t accept, or end up with a fine from the regulatory authorities. If your policies haven’t been updated in years, it’s time to revisit them.
Your due diligence policy should be a living, breathing document that grows with your organisation. It should contain:
- Rationale on why the policy exists
- Who the policy should be used by
- Guiding principles – laws and regulations the policy adheres to
- The types of donations accepted by your organisation
- The types of gifts that need to be risk-assessed
- Due diligence and risk assessment steps
- The decision-making process
- A timeline for policy reviews and updates
- Contact information for questions or concerns related to the policy
You’ve started a new programme and don’t have a policy in place
More organisations are launching major gift or corporate partnership programmes for the first time, and with that comes an even greater need for a straightforward due diligence and gift acceptance policy.
It’s easy to let slide if you haven’t had to think about it before. But your due diligence policy protects your organisation, your reputation, and ensures you’re adhering to fundraising regulations.
You haven’t told your supporters about your policies
Telling your supporters about the policies that help your organisation stay aligned with your vision, mission, or values is the fastest way to build trust with them.
If 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. Having a clear due diligence policy in place and sharing it with your supporters means they know you’re operating with integrity.
You’re not sure why you’re doing the due diligence research
If you don’t know what you want to achieve with due diligence research, you’re doing it wrong. When due diligence is done right, everyone in your organisation is on the same page. It empowers your team 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.
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