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Due Diligence Passporting

A streamlined approach to nonprofit due diligence

How much time and effort does it take your nonprofit organization to fill out each different assessment for each different funder?

How many times have you wished funders could all use the same data?

We underwent twelve separate due diligence assessments, and every year since we have had four to five assessments annually, all of which asked very similar questions. This absorbed time from our teams that could have been better spent on humanitarian and development work. – Ahmed Ibrahim, CEO of Arid Lands Development Focus, Kenya

Introducing the free Due Diligence Passporting tool

Most organizations, whether NGOs, INGOs, or local partners, struggle with the time and resources it takes to comply with separate grantmaker requirements. Due Diligence Passporting offers a time-saving solution: one comprehensive assessment that multiple funders accept.

  • No more redundant processes.
  • No more starting from scratch with each different system and process.
  • No more time wasted on busy-work.

A group of seven INGOs came together in what’s called the Charter for Change (CAFOD, Christian Aid, CRS, Kerk in Actie, SCIAF, Trócaire, and Tearfund) to develop a harmonized due diligence tool. Called a “passporting tool,” it’s documentation that different agencies agree to honor.

The Due Diligence Passporting process

This effort took into account prior work around improved due diligence, including CHS Alliance, HQAI, and the Start Network.

Working in collaboration with Humentum, this group of INGOs engaged in a year-long process to develop the tool, make sure it went through rigorous review, and then incorporate the feedback.

You can now use the outcome of that work, designed to meet the needs of various agencies while still being agile and simple to use.

 

How to use the Passporting tool

  • 1. The Passporting Organization carries out due diligence on the Partner Organization.

  • 2. The Passporting Organization or the Partner Organization provides a completed Passporting Tool (which summarizes the key outcomes of the due diligence assessment) to the Receiving Organization.

  • 3. The Receiving Organization carries out reduced additional due diligence on the Partner Organization IF it sees any areas that need more review or assurance.

Due Diligence Passporting Tool

Download the free, practical resource for nonprofits and funders who want a more streamlined, standardized due diligence process.

Click here to download the tool

*The file will automatically download.

For more background, read about the development and pilot, done with Charter for Change.

The issue isn’t the due diligence itself; it’s that everyone is doing it! And that’s a major burden for local actors. Imagine having to answer the same question on dozens of different templates, each one phrased slightly differently and showing up in different places. – Michael Solis, Trócaire

 

 

Reach out

If you have questions about the tool, or you know you’ll need some guidance, let us know.

Reach out to Humentum