Due Diligence and Fundraising Processes
Due diligence is an essential part of any fundraising effort. It confirms that the person or business is who they say they are, as well as providing important details about their past as well as their relationships, and helps investors evaluate your company’s potential for success prior to making a decision to invest in your company.
If you’re a business seeking investment or hoping to team with a philanthropic group having the ability to conduct thorough and transparent due diligence is key to your success. The ability to run due diligence early in the process allows you to quickly identify and eliminate partners that are not good before you invest your time and energy in forming a relationship that may not be worth the effort.
For instance, if a donor is associated with controversial issues or has done something illegal in the past, it could be a problem. Being able to conduct due diligence on potential donors early in the process lets you know before you commit valuable resources to a partnership which may not be compatible with your organization’s values and goals.
A successful due diligence process is swift, thorough, and well-organized. It should be able take in large quantities of public data, such as news media websites as well as social networks or even grey literature and produce digestible reports that can be easily shared across teams. It should be able to search through millions of documents to provide an organized and clear picture of your business that is simple to read and share.