Due diligence is an essential element of any fundraising campaign. It verifies that a company or individual is who they claim they are, as well as providing important information about their previous history and relationships, and assists investors evaluate your company’s potential for success before making a decision to invest in you.
If you’re a business seeking investment or hoping to team with a philanthropic group conducting thorough and transparent due diligence is crucial to your success. The ability to run due diligence early in the process allows you to quickly detect and eliminate partners that are not good before you commit your time in developing an alliance that may not be worth it.
If a donor’s history has been marred by controversial associations or actions or actions, this could be a deciding factor. Having the ability to conduct due diligence on prospective donors early in the process will allow you to learn prior to committing valuable resources to a partnership that might not align with your company’s values or mission.
A great due diligence program is comprehensive, quick and well-organized. It should be able to take in huge amounts of public information from various sources—such as news media websites social networks, websites, as well as grey literature. It will then produce digestible reports that are easily shared across teams. It will also be able to automatically scan millions of documents, and present an organized and clear picture of your company that is easy to comprehend and share.
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