What is Due Diligence?

Due Diligence is an investigative analysis of the financial, legal and operating activities of an entity. It is an essential risk management imperative before entering into a relationship with said entity. The Community Chest process focuses on aspects of Legal, Financial, Tax and Operational Due Diligence.

Why should organisations strive to meet due diligence requirements?

The non-profit sector subscribes to the standards upheld in the NPO Code which promotes best practice standards in ethics, integrity, accountability and transparency. The King IV code of governance is designed for both the private and non-profit sector. An NPO seeking funding or other donor partnerships, maximises their attractiveness as a grantee or partner when they have been vetted and are due diligence compliant, assisting in organisational sustainability.

What are the benefits of a Community Chest Due Diligence Certificate?

Community Chest only funds organisations compliant with its due diligence requirements. Meeting due diligence requirements does not, however guarantee an organisation funding by Community Chest. Periodically Community Chest issues calls for proposals and these calls are limited to organisations on our compliant due diligence database.

Community Chest also receives requests from funders to recommend projects for funding. In this case we only make recommendations from organisations on the due diligence database.

Organisations qualifying for due diligence compliance will be issued with a due diligence certificate valid for 12 months.

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