Purpose of Due Diligence
Due diligence is an objective and systematic process that verifies an applicant organisation is setup, governed, and run in a way that ensures grant awards are used effectively and for their intended purposes. This process should be risk-appropriate (i.e. tailored to the funder’s risk appetite) and proportionate (i.e. to the size of the grant).
Our Due Diligence process considers:
- Eligibility: Verifying applicant’s mission, vision and services align with the grant’s purpose.
- Compliance: Ensuring applicant adheres to relevant legal and regulatory standards, including the Charities SORP (FRS 102) and other financial reporting requirements.
- Delivery: Confirm applicant is set-up to successfully deliver services to beneficiaries consistent with funders expectations
ActionFunder takes a ‘positive & proactive’ approach to Due Diligence, supporting applicants through the process, rather than a more ‘stand-back’ manner, identifying reasons for potential rejection.
Assessment Framework
Profile & Governance – Ensure organisations’ status, purpose and governance comply with legal requirements and Funder eligibility.
Regulatory Filings – Ensure organisation is properly registered with relevant regulator(s) and in good standing with all filings and submissions (as relevant)
Annual Report & Accounts – Ensure organisation is financially stable, uses funds responsibly, and complies with legal requirements (i.e. SORP) and funder eligibility
Online Presence & Adverse Media – Ensure organisation has website and social-media with up-to-date content relevant to the application, and no sanctions or adverse media flags on organisation, trustees and key staff
Our ‘Core’ Checks
Profile & Governance
- Not-for-profit status confirmed
- Objects do not conflict with eligibility
- Governing document signed, dated and consistent across touchpoints
- Bank KYC/KYB/AML checks
Regulatory Filings
- Charity / Company number matches application
- Organisation operates in required location
- Number of Trustees / Directors meets governing document requirement, not more than 50% related
- Required documents not regularly overdue
Annual Report & Accounts
- Signed accounts from most recent financial year
- Income within limits defined by funder
- Material fluctuations in I&E adequately explained
- Independently examined / audited with no material concerns raised
Online Presence & Adverse Media
- Website and social media unambiguously relate to applicant organisation and are kept up-to-date with content relevant to the potential grant award
- Reference to organisation in other reputable media
- No sanctions list or adverse media flags on organisation, trustees / directors or senior staff
Need help?
If you have questions about due diligence, your Customer Success Manager is here to support you. You can also contact us at customersuccess@actionfunder.org.