November 29, 2011

Day 12: Right-size the questions you ask potential grantees. #30DayDonorChallenge #GiveSmart

By: The Bridgespan Group

We often hear from donors and grantees alike that the grantee “due diligence,” or research, process is either too burdensome or not rigorous enough. As you design your own process, be judicious with your requests. Keep in mind that responding to your requests can be a time-consuming, costly process for the nonprofit (just think of the hidden costs of multiple requests for newly-formatted information, for example).

So what is the best way to research a nonprofit organization you’re considering funding? The answer to that question depends on a number of factors, including how much you already know about the organization, the size of your grant, and its importance to the nonprofit, among other things. Check-out the video The True Cost of Running Nonprofits from GEO's SmarterGrantmaking Channel to learn more about the productive and counterproductive ways that grant makers contribute to or hinder nonprofit success.

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