Legal and Statutory Compliance

Due diligence begins with ensuring that the NGO has met all legal registration and tax-related requirements. These documents prove the legitimacy and standing of the organization.

• Certificate of registration as trust, society, or Section 8 company
  
• PAN card in the name of the NGO and updated registration numbers
  
• Valid 12AB, 80G, and FCRA certificates where applicable
  
• Copies of trust deed, memorandum, or articles of association
  
• Latest renewal or revalidation approvals from tax authorities

Governance and Board Information

A well-structured board with transparent practices is a key indicator of responsible governance. Donors assess board functioning and oversight roles.

• List of current trustees or board members with roles and tenures
  
• Meeting minutes and resolutions from the past 12 months
  
• Conflict of interest policy and board code of conduct
  
• Evidence of regular board meetings and active engagement
  
• Defined responsibilities and decision-making procedures

Financial Documentation and Controls

Reviewing financial health and controls ensures that the NGO manages its resources effectively. It also highlights any red flags or risks.

• Audited financial statements for the last 3 years
  
• Budget for the current year and cash flow forecasts
  
• Internal control policy for financial and procurement practices
  
• Bank statements, reconciliations, and fund utilization records
  
• Details of financial software used and expense authorization procedures

Program Implementation and Monitoring

Program records help assess how effectively the NGO delivers on its mission. Implementation data supports impact evaluation and credibility.

• Project proposals, logic models, and implementation plans
  
• Baseline data, indicators, and target milestones
  
• Monthly or quarterly monitoring reports and field visit summaries
  
• Evidence of beneficiary selection and community participation
  
• Documentation of challenges and mid-course corrections

Human Resource and Administrative Policies

Due diligence includes assessing how the NGO manages its staff, volunteers, and daily operations. HR policies indicate professionalism and workplace culture.

• Staff structure and organogram with updated contact details
  
• Recruitment, leave, and performance evaluation policies
  
• Grievance redressal and harassment prevention mechanisms
  
• Volunteer management guidelines and codes of behavior
  
• Payroll records, contracts, and staff capacity-building programs

Donor Management and Fundraising

Transparency in donor engagement and fundraising practices builds external trust. NGOs must have clear documentation of fundraising ethics and communications.

• List of current and past donors with contribution details
  
• Donor communication policies, receipts, and acknowledgments
  
• Fundraising strategies and campaign reports
  
• Copies of donor agreements and terms of grant utilization
  
• Compliance with donor reporting timelines and branding guidelines