Conducting nonprofit due diligence on a potential grantee is a unique process for each situation. Your process for deciding whether to invest in a nonprofit will likely depend on your answers to these questions:
• How large and/or critical to your strategy would this grant be?
• Do you believe that your potential support is very important for this nonprofit?
• Is this grant potentially controversial in any way?
• How familiar are you with the organization?
Deciding the level of nonprofit research your grant warrants will help you focus on the most important questions and be efficient with your time (and the potential grantee’s). Below are a list of documents that focus on varying degrees of research. Choose to start with the "Light-Touch Approach" (below) for grants that are smaller or less critical, then move to a more intensive approach as your grant warrants.