DUE DILIGENCE OVERVIEW
Give2Asia offers unrivaled due diligence capabilities that take every step possible to ensure grant funds are used wisely and as intended. With local staff who speak the local language and understand the local context, Give2Asia identifies world-class organizations, groups with a demonstrated record of success, and organizations with innovative approaches to the challenges faced by Asian communities.
WHY DUE DILIGENCE IS IMPORTANT
If a donor recommends an organization that has not already been approved by Give2Asia, we will conduct a due diligence review to establish the recommended organization’s eligibility. This required process has become both more important and complex as government guidelines for funding overseas entities have changed to ensure proper accountability. Give2Asia is committed to ensuring that any grants made to on-the-ground partners are not used to support any form of violent political activity or terrorist organizations. In addition to Give2Asia’s own review of management polices, the due diligence review ensures that the recommended organization complies with Executive Order 13224, the USA Patriot Act, the U.S. Treasury Department Voluntary Guidelines on anti-terrorist financing, and prudent and best practices for funding overseas. We monitor the U.S. Government’s regulations and guidelines regarding anti-terrorist financing and international grantmaking to ensure we are in full compliance with the most recent laws and best practices.
Give2Asia’s due diligence procedures include a pre-grant Eligibility Application for prospective grantees, as well as thorough grant administration, monitoring, and reporting. The due diligence process is described below. However, please note that these are general due diligence steps; Give2Asia reserves the right to flexibly determine qualified grantees, taking into account an organization’s development and management. While Give2Asia is extremely careful about due diligence, the procedure should not overly burden grantees or prevent grants to qualified organizations.
ORGANIZATIONAL DUE DILIGENCE
Give2Asia’s due diligence process includes the following steps:
- Review of prospective grantees’ articles of incorporation, by-laws, and other documentation to ensure the organization’s charitable purpose and that it has an appropriate governance structure
- Confirmation of legal registration
- Check of the organization, Board members, and key staff against watch lists of ineligible recipients published by the U.S. Treasury Department and other federal and international agencies
- Review of annual reports and other program reports to determine organizational experience, capabilities and track record
- Assessment of organizational reputation in-country
- Review of financial information, including:
- Current and past budgets showing sources and uses of revenue
- Internal or independent financial reviews and audits, depending on size of grant
- Periodic reports on operations and use of foundation-granted funds
- Accounting practices and systems used by the organization
PROJECT DUE DILIGENCE
Give2Asia also takes the following steps to exercise proper due diligence on each grant:
- Review of grant proposal and budget submitted
- A written grant agreement with specific provisions setting forth mutual responsibilities, signed by both parties
- Confirmation of the receipt of funds
- Periodic written reports from the grantee are required describing the grant’s impact and expenditures – reports which are passed on to the donor at the end of a grant period
- Review of reports and financial statements from the grantee to ensure that the funds are used as agreed and that the project was well managed and implemented