create a checklist for due diligence of a nongovernmental organization / nonprofit company

Purpose of the checklist

Importance of due diligence for NGOs/nonprofit companies

Verify legal status and registration of the organization

Assess the governance structure and board composition

Review the organization's constitution, bylaws, and policies

Check compliance with relevant laws and regulations

Examine financial statements, including balance sheets and income statements

Assess the organization's financial stability and sustainability

Evaluate the effectiveness of financial controls and systems

Review auditing and reporting practices

Evaluate the organization's mission, goals, and objectives

Assess the impact and effectiveness of programs and activities

Review program planning, monitoring, and evaluation processes

Examine partnerships and collaborations with other organizations

Review staff qualifications, experience, and expertise

Verify the organization's hiring and recruitment practices

Assess staff training and development initiatives

Review the organization's policies on employee safety and well-being

Assess fundraising strategies and campaigns

Verify compliance with fundraising regulations and ethical standards

Evaluate diversification of funding sources

Review donor relationships and transparency in financial reporting

Assess the organization's monitoring and evaluation framework

Review the measurement of outcomes and impact

Evaluate the use of data for decision-making and program improvement

Verify adherence to ethical standards and data protection protocols

Review partnerships with other organizations, governments, and communities

Assess the organization's communication and engagement with stakeholders

Evaluate the organization's reputation and relationships with key stakeholders

Assess the organization's advocacy and policy influencing initiatives

Identify potential risks and vulnerabilities

Assess risk management policies and procedures

Review legal and regulatory compliance

Verify insurance coverage and risk mitigation strategies

Summarize findings and recommendations

Provide guidance on addressing identified gaps or weaknesses

Emphasize the importance of ongoing due diligence and monitoring