Risk management/Due diligence chapter (The decision-making process…
Risk management/Due diligence chapter
Due diligence: the process of gathering evidence to help you decide whether to go ahead with a potential corporate partnership
To decide the level of due diligence work necessary to do, you must judge the level of risk of the partnership
The depth/amount of checks should be proportionate to the level of risk
How to judge the level of risk
Who should complete due diligence checks?
Trustees can delegate if the right systems and processes are in place
These systems and processes allow trustees to hold people to account and ensure any arrangements agreed are in the best interests of the charity
The systems/processes then must then provide appropriate levels of guidance in writing including how to feed back information to the trustees
The due diligence process
Who are you dealing with?
Where are they?
Who owns it?
Is it registered/regulated?
Who will you be dealing with?
What do they do?
Validity of any accusations
Ethical check process
How feasible will it be to deliver in partnership?
• What’s the likely corporate partnership portfolio going to be?
• How straightforward will it be to monitor the delivery of the activities in the portfolio?
• Would the potential partner have the ability, including management and technical capabilities, to carry out its end of the partnership deal?
• Does the corporate already have other partners? Would this affect its ability to be an effective partner with your organisation?
• Has it had previous experience of such activities with other charities that demonstrate its ability to deliver them successfully?
• Is it straightforward to get hold of the corporate’s key personnel?
The decision-making process
Independent of personal or majority views/codes/morality
Ignore irrelevant factors
Should be based on evidence: will actions...
... cause unacceptable risk?
...damage your charity's reputation?
List the potential issues
Categorise the issues
Test the objections
An ethical/acceptance and refusal policy