Compliance is often seen as a necessary evil in the fundraising world. It’s something we all have to do, but everyone fears it’s just slowing down fundraising. If that’s your organisation’s attitude, you’ve got compliance all wrong. By treating compliance like it’s a tick-box exercise, you’re missing its biggest benefit. It is really a way of enabling you to do your fundraising in the best way possible.
When we think about prospect research compliance process, from a legitimate interest assessment (LIA) to your gift acceptance policy, it is an opportunity for researchers and fundraisers to ask better questions. Do we need this data? Why are we doing things this way? How can we create a better experience for our supporters?
With those questions, researchers and fundraisers can focus on the information they really need, use it to make better decisions and build better relationships.
Compliance leads to better prospect research
Adhering to compliance processes means that organisations are forced to consider what information they actually need. It encourages purposeful, relevant research rather than collecting data for the sake of it.
When fundraisers have truly relevant information to work with, they can build better relationships and, in turn, create opportunities for appropriate asks that benefit both the donor and the charity.
Data minimisation means cleaner databases
By putting data minimisation at the heart of your research, you only collect information that supports your fundraising decisions. Having guidelines on how long you hold donor information means you remove outdated or unnecessary records and your database increases in quality and usability.
This reduces your organisation’s compliance risk and makes research more efficient and successful.
Gift acceptance policies mean consistency
By establishing clear principles before difficult decisions arise, everyone is on the same page when it comes to assessing major gifts. This removes any personal opinions from decision-making, documents the rationale behind decisions, and provides clear guidance on when decisions need to be escalated to senior management and/or trustees.
This approach makes it easier to evidence that risks have been considered and protects your organisation if circumstances change in the future.
Due diligence protects your relationships and your reputation
Making your due diligence policies accessible to your supporters communicates your professionalism. High-level supporters expect this kind of research to be carried out before you accept a major gift, as it protects your organisation’s reputation as well as that of your donors by association.
Don’t forget, your donors will also be researching you, so due diligence is not something you need to hide.
Documentation is evidence, not just a tick-box exercise
Undertaking a LIA (Legitimate Interest Assessment) and DPIA (data protection impact assessment) demonstrates thoughtful decision-making that protects everyone involved in the major gift process. It shows that decisions were well considered and provides an audit trail if something is called into question later.
Compliance isn’t separate from research and fundraising; it’s a key part of best-practice fundraising and should form part of your strategy.
Organisations that embed compliance into their fundraising processes build stronger donor relationships, make better decisions and give trustees the confidence to pursue ambitious opportunities.
We know that one size doesn’t fit all
What’s right for one charity might not be right for you. That’s why we tailor our due diligence support to your needs, carefully considering the way you work, your mission, vision, values and objectives. We also think about external factors like the impact a gift could have on your brand and image.
Do you have the time and methods to carry out due diligence checks? If not, we can help. Find out about our due diligence research.