pilot tool
From Talk to Action: A New Financial Tool for Locally-led Development
Imagine having to prepare multiple different audit reports every time you need to apply for funding. If you’re an NGO, you don’t have to imagine that reality – you live it.
If you’re a funder, you live the reality of trying to turn multiple due diligence reports into a coherent narrative to show good use of donor funds.
What if donors would accept one standard for financial due diligence?
That’s why seven members of the Charter for Change (C4C) coalition were interested in exploring alternatives. Humentum facilitated the development of the new Due Diligence Passporting Toolkit, together with the compliance leaders of the pilot organizations.
Key Benefits of Passporting Due Diligence
- Efficient and Streamlined Processes: Reduces duplication of efforts and improves efficiency by allowing for the transfer of due diligence assessments across different organizations to streamline the process of vetting and verifying partners.
- Time and Cost Savings: Whether you’re a grantor or a grantee, you save time and money by not having to conduct or review multiple separate due diligence assessments.
- Enhanced Collaboration and more Equitable Partnership: Organizations can leverage existing due diligence assessments or certifications to establish partnerships more quickly and efficiently.
- Improved Risk Management: By relying on recognized due diligence assessments, organizations can make more informed decisions and minimize risks in partnerships.
- Standardization and Quality Assurance: Using standardized due diligence criteria and methodologies creates consistent evaluation processes and improves quality control.
- Reputation and Credibility: Using recognized due diligence certifications can instil confidence in donors, stakeholders, and partners.
- Compliance with Regulatory Requirements: By relying on recognized assessments, organizations can demonstrate their compliance with due diligence requirements, reducing the administrative burden associated with individual compliance assessments.