How Funders Can Identify High-Impact Charities: A Due Diligence Checklist
Trust is the foundation of effective philanthropy—but how can funders be confident in their giving decisions?
Unlike the financial sector, where strict regulations ensure transparency and accountability, the charity sector is not as uniformly regulated. Many funders hesitate to give because they:
Don’t know which organisations to support.
Struggle to assess whether a charity is truly impactful.
Worry about financial sustainability, governance, or alignment with their values.
This uncertainty creates a mistrust gap between funders and charities—but it doesn’t have to.
Today, I’m sharing a Due Diligence Checklist for Funders—a structured tool to help you assess charities before investing. This checklist ensures you’re funding organisations that are:
Solving a clearly defined problem
Using an effective, evidence-based solution
Led by strong governance and leadership
Financially sustainable with diversified income streams
Measuring and learning from their impact
This tool doesn’t just help funders—it also helps charities articulate their impact, financial health, and strategic vision when seeking funding.
Download the Checklist
To make this easy to use, I’ve created a fillable template that funders can share with charities during the due diligence process.
I’ve also created a sample checklist that you can send on to a charity that you’re interested in supporting, and if you are from a charity reading this, download the checklist and see how well you’d go if you were asked to fill it out.
How to Use This Checklist
This checklist is not just an assessment tool—it’s a way to start meaningful, trust-based conversations between funders and charities. Funders can:
Send it to charities as part of their funding evaluation.
Use it as a guide in meetings with potential grantees.
Assess alignment, impact, and financial health before making a funding decision.
Let’s Talk About Trust in Philanthropy
I’d love to hear from you!
Funders: Would this checklist help you make more confident funding decisions?
Charities: What questions do you wish funders asked during due diligence and how did you go completing this checklist yourself?
Drop a comment below or share your thoughts!
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