What is Due Diligence!?

Dear Diary

Merriam Webster defines Due Diligence, in the business context, as "the research a company performs before engaging in a financial transaction."

In the context of fundraising, conducting due diligence is a duty you must perform to ensure that a prospect and/or donor has the capacity to make a donation or fulfill a pledge over a specific time period.

Due Diligence matters to Prospect Researchers because it is at the core of our work. We fact check, not for the sake of aimless searches. But to ensure that a prospect is properly rated and researched based on qualifying factors that provide an appropriate giving level. Due Diligence runs through the veins of a researcher. It is the necessary research that must be done prior to an Ask. And while conducting research, a researcher is cognizant of the source, purpose and context of the data gathered, and it’s management.

Due Diligence matters to nonprofits in the ways that nonprofits set goals based on benchmarked achievements and losses and create SWOT analyses for a new fiscal year. To conduct due diligence in this setting, is to make a list and check it twice prior to seeking a grant and building a relationship with a stakeholder. How do we know them? Is there a connection with our organization? It is the preparation before a meeting. It is the queries on donors at specific levels for an event. And it is the strategies in place to show donors love, once they make a gift.

Due Diligence matters to people in different fields because it is a call to action for research. It resurfaces in the moments that you seek preparedness, and in all contexts, it is your responsibility to assess and manage risks.

Now you tell me, what does due diligence mean to you?

Until next time, June 15th!