What does effective due diligence look like?

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Due diligence is a process that helps grantmakers get to know grantseekers. Typically, it’s seen strictly as a means to ensure an organization’s financial and legal compliance. However, when done well, due diligence has the potential to provide insight into such critical attributes as the role of the organization’s board, the position the nonprofit holds in its field and community, and the level of alignment between our own mission and the goals of the grantseeker. The difficult part of due diligence is in asking the right questions and in a way that makes the most of the nonprofit’s time and resources. Efficient due diligence efforts avoid overburdening nonprofit staff with excessive and difficult to navigate applications and forms that provide little value. This piece provides an overview of what it takes to carry out an effective due diligence process.

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