NGO checks and due diligence

What it is

Before you fund an organisation you need to know it is who it says it is and that you are allowed to pay it. CorpHands checks every NGO in your directory automatically each night. Every NGO is screened against the US Treasury's sanctions list (OFAC SDN). Where an official register can be read, it is checked too: the IRS list of organisations eligible for deductible gifts (Publication 78) for US NGOs, and the register of NGOs in England and Wales.

A possible sanctions match puts payments to that NGO and approvals of its requests on hold until an owner or admin reviews it and records why it is, or is not, the listed party. The checks compare names and numbers with public lists; a possible match is not a finding, and the checks don't replace your own due diligence. That is what the Due diligence scorecard is for.

What you can use it for

• See on each NGO's page whether it is clear, a possible match, reviewed or not yet checked, with the date of the list used.
• Stop payments and approvals automatically while a possible sanctions match is waiting for review.
• Spot a US NGO whose EIN is no longer in Publication 78, or an English or Welsh NGO removed from the register.
• Score an organisation 0 to 5 on legal status, governance, financial health, track record, delivery capacity and safeguarding, with a note and the date.
• Keep the assessment with the organisation, so it follows it across grants and years.

How to do it

Run and read the checks

1. Open the NGOGo to CSR workspace → NGOs and open an NGO. The Automatic checks panel shows each check, its status and when it ran.
2. Run now if neededChecks run every night. After adding an NGO or changing its number, click Run checks now.
3. Add the numbersRecord the EIN for US NGOs and the registration number for NGOs in England and Wales, so the registers can be checked.

Review a possible sanctions match (owner or admin)

1. Compare the detailsOpen the list entry shown and compare country, address and registration with your records.
2. Record the reviewWrite what you found in Review note and click Record the review. If it is not the listed party, payments and approvals are released; the note stays in the audit trail.

Score your due diligence

1. Open Due diligenceOn the NGO's page, score each criterion from 0 (not assessed) to 5, using the hints under each one.
2. SaveAdd a note, for example what is still awaited, and click Save assessment. The total shows as Strong, Adequate or Weak.

Tips and good practice

• Treat a possible match as a question to answer, not as a verdict: most are a similar name in another country.
• Re-score an organisation each year, or when its accounts or board change.
• Write your NGO policy in Settings, so everyone is assessed the same way and employees know which organisations you fund.
• The England and Wales register check needs an API key on the server; until one is added, that check shows as not checked.

Questions