Due Diligence: Home

Illinois Nonprofit Principles and Best Practices was first published in 2004 as part of the Preserving the Public Trust Initiative. The 29 member task force, representing the best of Illinois' nonprofit sector, devised ten principles to help all nonprofit organizations adhere to high ethical standards and strong governance.

Chapter 8, Due Diligence: Vetting and Evaluating Organizations
Once you have compiled a list of potential organizations to fund, you’ll want to conduct a due diligence process to vet them for effectiveness. Due diligence involves assessing a nonprofit’s goals,
strategies, and capabilities to determine whether the organization is worth your support.
This chapter addresses two essential questions:
• What is due diligence, and why does it matter to my philanthropy?
• How do I conduct the due diligence process—what tools and resources should I use?

This resource is intended to fill a gap in available source material to provide a useful overview for grantmakers of all sizes and types. It outlines the general steps of the grantmaking process while highlighting areas where due diligence components can be incorporated.

This guide provides insight on what it really means to do the homework and outlines action steps funders can take to meaningfully incorporate this practice in their organizational structure, culture, and relationships.