Due Diligence

While nonprofit organizations are subject to a host of regulatory requirements at the federal, state and local levels in the U.S., and are regulated in almost every country in the world, they also subject themselves to a wide array of due diligence, oversight and transparency mechanism. In ensuring that nonprofit funds are only spent for nonprofit purposes, the organizations protect themselves from the possibility of terrorist abuse, fraud, theft, and other diversion of assets. Because a nonprofit organization stands to lose the most, these self-imposed measures protect the organization, its donors, programs, partners and beneficiaries. Although there is no uniform set of procedures, measures taken typically include risk assessment, screening vendors against sanctions lists, and internal policies and procedures.