Due diligence is a vital aspect of any fundraising effort. It verifies that a person or business is who they claim they are, and also provides details regarding their past as well as their relationships, and helps investors assess your company's chances for success before making the decision to invest in your company.
Whether you're a company seeking investment or looking to sign with a charitable organization conducting thorough and transparent due diligence is key to your success. Due diligence can be conducted at an early stage to eliminate and identify bad partners.
If a donor's history has been shattered by controversies in their actions or associations or actions, this could be a deal breaker. Having the ability to conduct due diligence on potential donors earlier in the process lets you know prior to committing valuable resources to a partnership which may not be compatible with your company's values or mission.
A great due diligence procedure is quick, thorough and well-organized. It should be able take in large amounts of public data such as news websites and social networks, or even grey literature and then provide digestible reports which can be shared easily across teams. It should be able to scour through millions of documents to provide an organized and clear picture of your business that is easy to comprehend and to share.