Due diligence is a vital aspect of any fundraising campaign. Due diligence validates the identity of a business or individual, provides information about their past and relationships, and allows investors to review your business before deciding whether to invest in you.
It is possible to achieve success by conducting thorough due diligence, regardless of whether you are a company looking for investment or a philanthropic organisation. Due diligence can be done early on in the process to identify and eliminate poor partners.
For instance If a donor has been associated with a controversial cause or has taken a risk in the past, this might be a deciding factor. Being able to conduct due diligence on prospective donors early in the process allows you to know prior to committing valuable resources to a relationship that isn’t in line with your organization’s values and mission.
A great due diligence is quick, thorough and well-organized. It should be able to take in large quantities of public data like news websites and social networks, or even the grey literature and then provide digestible reports that can be easily shared across teams. It is also expected to automatically scan millions of documents and present a clear, structured overview of your business that’s easy to read and share.