{"id":866,"date":"2025-06-17T14:19:40","date_gmt":"2025-06-17T18:19:40","guid":{"rendered":"https:\/\/blackbaud-replatforming.local\/?post_type=resource&#038;p=866"},"modified":"2025-09-17T04:02:54","modified_gmt":"2025-09-17T08:02:54","slug":"grantmaker-due-diligence-questionnaire","status":"publish","type":"resource","link":"https:\/\/www.blackbaud.com\/industry-insights\/resources\/foundations\/grantmaker-due-diligence-questionnaire","title":{"rendered":"Grantmaker Due Diligence Questionnaire"},"content":{"rendered":"\n<section class=\"hero hero--textual hero--textual-powder-blue\">\n    <div class=\"container\">\n        <div class=\"row\">\n            <div class=\"col-9 col-lg\">\n                <ul class=\"breadcrumbs list-unstyled\">\n    <li><a href=\"https:\/\/www.blackbaud.com\"><i class=\"fa fa-home\"><\/i><\/a><\/li>\n            <li><a href=\"\/industry-insights\">Industry Insights<\/a><\/li>\n        <li><a href=\"\/industry-insights\/resources\">Resources<\/a><\/li>\n        <li>Grantmaker Due Diligence Questionnaire<\/li>\n            <\/ul>            <\/div>\n        <\/div>\n        <div class=\"row\">\n            <div class=\"col-12 col-lg-7\">\n                <div class=\"hero--textual__content\">\n                                    <h1>Grantmaker Due Diligence Questionnaire<\/h1>\n                                <\/div>\n            <\/div>\n            <div class=\"col-12 col-lg-5\">\n                <div class=\"acf-innerblocks-container\">\n\n<div class=\"hero-resource-download\" id=\"hero-resource-download-block_e57a708402921391957c5ea1a5edfa01\">\n        <div class=\"hero-resource-download__wrapper\">\n                    <div class=\"hero-resource-download__wrapper-icon\">\n                <img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.blackbaud.com\/wp-content\/uploads\/2023\/06\/education.png\" alt=\"\" width=\"40\" height=\"40\">\n            <\/div>\n                            <div class=\"hero-resource-download__wrapper-type\">\n                <h6>Tip Sheet<\/h6>\n            <\/div>\n                            <div class=\"hero-resource-download__wrapper-button\">\n                <a href=\"https:\/\/www.blackbaud.com\/wp-content\/uploads\/2022\/05\/Due-Diligence-Questionnaire_2025-Update.pdf\" class=\"btn btn-primary btn-no-arrow\" download=\"\">Download Now<\/a>\n            <\/div>\n            <\/div>\n    <\/div>\n\n<\/div>            <\/div>\n        <\/div>\n    <\/div>\n<\/section>\n\n\n<section class=\"wysiwyg wysiwyg-white white-bg\" id=\"wysiwyg-block_e1865a97c62b30b9206dc21897b2fa27\">\n            <div class=\"container\">\n            <div class=\"row\">\n                <div class=\"col-12\">\n                    <p><em class=\"dark-blue-green-em\">BY ELIZABETH GOUSSE BALLOTTE, Principal at PKF O\u2019Connor Davies<\/em><\/p>\n<p class=\"body-large\">Your foundation has a strong mission, and the programs you fund are a reflection of your priorities and values. By completing some basic due diligence, you can gain valuable insight into the level of alignment between your grantmaking organization\u2019s mission and your potential grantees\u2019 objectives. Here are 15 questions to ask when evaluating a potential grantee.<\/p>\n<hr \/>\n<p>&nbsp;<\/p>\n<h4>1. Has your foundation supported this organization in the past?<\/h4>\n<p class=\"body-medium\">If you have worked with this grantee and had a good experience, your due diligence will be easier. If you haven\u2019t worked with this organization before, visit their website to see if they list their funders and use sam.gov to see if they\u2019ve received federal funds.<\/p>\n<p>&nbsp;<\/p>\n<h4>2. Does their program portfolio include similar-sized projects?<\/h4>\n<p class=\"body-medium\">Does the organization have a track record of managing programs with similar resources to what they plan to undertake with this funding? Or is this a logical growth step? If the answer is not obvious on their website or social feeds, talk with the organization\u2019s leadership.<\/p>\n<p>&nbsp;<\/p>\n<h4>3. Does the organization match your grantmaking priorities?<\/h4>\n<p class=\"body-medium\">If you have requirements around the leadership reflecting the demographics served, climate impact, community involvement, or other priorities, does the potential grantee meet those goals? In addition to asking about these initiatives on your application, make sure to verify through interviews and research.<\/p>\n<p>&nbsp;<\/p>\n<h4>4. Did they complete the application in full and on time?<\/h4>\n<p class=\"body-medium\">An incomplete or late application may not be a reason to reject a potential grantee on its own, but it can give insight into staffing or bandwidth issues, or simply a lack of organization.<\/p>\n<p>&nbsp;<\/p>\n<h4>5. Is the grantee verified by the IRS?<\/h4>\n<p class=\"body-medium\">If you require your grantees to be a 501(3)(c), ask the potential grantee to supply this letter directly so you can verify that the organization is recognized by the IRS. As the organization continues through the grantmaking process, also use the IRS Tax Exempt Organization Search to double-check.<\/p>\n<p>&nbsp;<\/p>\n<h4>6. Is the grantee compliant with IRS requirements?<\/h4>\n<p class=\"body-medium\">By receiving the organization\u2019s Form 990, 990-EZ, 990-N, or 990-PF, you can easily verify that the potential grantee is current and compliant with its required IRS filings. If you don\u2019t require your grantees to be tax-exempt, you can ask for their business tax return to make sure they are current with their taxes.<\/p>\n<p>&nbsp;<\/p>\n<h4>7. Have their financial statements been reviewed by an independent CPA?<\/h4>\n<p class=\"body-medium\">With an audit by an independent CPA, you can be confident that the statements are an accurate picture of the grantee\u2019s financial health. Smaller organizations that aren\u2019t required to get a full financial audit might still benefit from a less-expensive <a href=\"https:\/\/blog.blackbaud.com\/financial-reviews-vs-financial-audits\/\">financial review<\/a>. If the financial statements have not been audited by an independent CPA, or if the audit uncovered issues, be sure to ask about their next steps. If you require your grantees to undergo a full financial audit, include that on your application documents or eligibility quiz.<\/p>\n<p>&nbsp;<\/p>\n<h4>8. Is their current budget realistic?<\/h4>\n<p class=\"body-medium\">By reviewing the organization\u2019s budget for the fiscal year, you can see whether it is practical, if the sources of revenue are reliable, and if they have reasonable estimates of future expenses.<\/p>\n<p>&nbsp;<\/p>\n<h4>9. How would the grantee respond to any unexpected revenue changes?<\/h4>\n<p class=\"body-medium\">See if the potential grantee has a plan in place if outside forces affect the budget in a significant way, either positively or negatively. Internal Control Resources for Your Grantees If the organization you\u2019re evaluating is a good fit for your grantmaking program but might not have the great internal controls in place, provide them with resources to help shore up their processes and procedures. You can start with our Internal Controls Toolkit specifically designed for nonprofit organizations.<\/p>\n<p>&nbsp;<\/p>\n<h4>10. What is the organizational structure?<\/h4>\n<p class=\"body-medium\">Request an organizational chart to see the potential grantee\u2019s reporting structure and if they have staff to effectively manage the different roles for internal controls.<\/p>\n<p>&nbsp;<\/p>\n<h4>11. Who are the board members, including their occupations and titles?<\/h4>\n<p class=\"body-medium\">Look for any obvious conflicts of interest and get a feel for who at the organization has governance responsibilities. Are there defined roles and committees for the board? With a few quick searches, you can also verify whether the board includes members of the community they are serving.<\/p>\n<p>&nbsp;<\/p>\n<h4>12. What information is shared with the board and how often?<\/h4>\n<p class=\"body-medium\">Review a board packet from the most recent board meeting. See what information is included. A regular cadence of oversight is good but watch for issues with too much decision-making responsibility falling on the board\u2014or not enough.<\/p>\n<p>&nbsp;<\/p>\n<h4>13. Has the organization undergone a board assessment recently?<\/h4>\n<p class=\"body-medium\">A board assessment will help identify any skills or composition gaps that need to be filled. If they have done an assessment, ask about the follow-up and how the findings will be addressed.<\/p>\n<p>&nbsp;<\/p>\n<h4>14. Is there a conflict of interest policy?<\/h4>\n<p class=\"body-medium\">Understand how issues are addressed if they arise, including between the Board and the organization. Look for a strong set of internal controls, including a <a href=\"https:\/\/blog.blackbaud.com\/conflict-of-interest-guidelines\/\">conflict of interest policy<\/a>.<\/p>\n<p>&nbsp;<\/p>\n<h4>15. Is there a healthy relationship between the Board and leadership?<\/h4>\n<p class=\"body-medium\">During your conversations with the leadership of the potential grantee, ask about the relationship between the organization and the board. Be sure to get this information from both a board representative and the CEO or Executive Director.<\/p>\n<p>&nbsp;<\/p>\n<h3>Build a Due Diligence Process<\/h3>\n<p class=\"body-large\">Due diligence is a vital part of the grantmaking process. But it can be difficult for smaller grantmakers to undertake extensive due diligence. Don\u2019t get overwhelmed with a huge checklist. Start with what your team can manage, such as reviewing an application and a handful of documents, and add from there. Create a network of CFOs and Grant Managers to share helpful best practices and ideas to make the process more streamlined.<\/p>\n                <\/div>\n            <\/div>\n        <\/div>\n    <\/section>\n\n<section class=\"interruptor interruptor-powder-blue powder-blue-bg\" id=\"interruptor-block_caf71d403a9fdcf58841e4ed8c87d187\">\n    <div class=\"interruptor__blue-diamond\"><\/div>\n    <div class=\"interruptor__green-diamond\"><\/div>\n    <div class=\"interruptor__green-blue-diamond\"><\/div>\n    <div class=\"container\">\n        <div class=\"row\">\n            <div class=\"col\">\n                <h2 style=\"text-align: center;\">Learn how Blackbaud can level up your team.<\/h2>\n<p>&nbsp;<\/p>\n<p style=\"text-align: center;\"><a class=\"btn btn-secondary\" href=\"https:\/\/www.blackbaud.com\/request-a-customized-demo\/?BBUS_TY-Page_Interrupter\">Schedule a Demo<\/a><\/p>\n            <\/div>\n        <\/div>\n    <\/div>\n<\/section>","protected":false},"excerpt":{"rendered":"<p>Basic due diligence can provide valuable insights into how well your grantmaking mission aligns with potential grantees&#8217; goals. Download this tip sheet today to create the processes to verify your grantmaking mission aligns with your potential grantees.<\/p>\n","protected":false},"author":2,"featured_media":30607,"parent":168,"menu_order":0,"comment_status":"open","ping_status":"closed","template":"singular.block.php","meta":{"_acf_changed":false,"footnotes":""},"vertical_tax":[14,19],"competency":[30],"product_tax":[59],"region":[114],"resource-type":[132],"class_list":["post-866","resource","type-resource","status-publish","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.9 (Yoast SEO v25.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Grantmaker Due Diligence Questionnaire | Blackbaud<\/title>\n<meta name=\"description\" content=\"Use these 15 questions to help you gather the information you need to be confident that the grantees you select can use the funds effectively.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.blackbaud.com\/industry-insights\/resources\/foundations\/grantmaker-due-diligence-questionnaire\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Grantmaker Due Diligence Questionnaire\" \/>\n<meta property=\"og:description\" content=\"Basic due diligence can provide valuable insights into how well your grantmaking mission aligns with potential grantees&#039; goals. 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