The future of philanthropic due diligence: New standards and technology in 2025
Philanthropic due diligence has evolved rapidly in recent years, with increasingly formalised and centralised due diligence processes, and the adoption of AI reshaping the landscape.
Read MoreResearch funding compliance with King’s College London
Andy discussed how UKRI has enhanced its approach to risk awareness, adopting a more mitigative protocol to minimise threats. This includes new principles that require more extensive due diligence, particularly when working with global partners in regions like Africa, Southern Asia, and South America. The initiative aims to protect research integrity, intellectual property, and the reputation of both the UK and institutions like King’s College London. Compliance with UKRI’s international due diligence guidelines is now essential, which includes assessing sustainable deliverables and evaluating organisations based on risk.
Read MoreWhy Dartmouth College trusts Xapien for reputational risk checks
Dartmouth College’s 200-year-old reputation was at risk when it engaged with a donor offering a substantial restricted capital gift. The donor was frequently targeted by demonstrators who would follow them around the country during engagements. Any public association with the donor risked similar demonstrations and negative publicity for the College. This led its Associate Vice President (AVP) of Development, Operations, and Performance to establish a framework for assessing reputational risk and create a process to manage it with the right tools and systems.
Read MoreCustomer story: WaterAid
Ethical and reputational due diligence is a critical component of WaterAid’s organisational strategy. Given WaterAid’s reliance on partnerships with various donors, suppliers, and collaborators, maintaining a robust process for identifying potential risks and opportunities is essential. This need has become even more pronounced with growing global attention on sustainability, financial crime, and governance issues. To address these challenges, WaterAid implemented Xapien to provide ethical checks and streamline information gathering across various departments.
Read MoreWebinar: Dartmouth College case study
Reputational risk at Dartmouth College became a significant concern around 2018-2019, following high-profile cases like the Sackler family. These incidents highlighted the need for better management of philanthropic gifts to avoid negative associations. Dartmouth sought to establish clearer guidelines for reputational risk, initially looking at what other organisations were doing. Their first major experience involved a donor who disclosed that demonstrators often followed him, raising potential publicity risks. However, at the time, tools to assess reputational risk were limited. Dartmouth hired a company that provided a lengthy, expensive dossier, but the process was inefficient. Over time, they explored other tools but continued seeking a more efficient, confidence-building solution to identify red flags and risks associated with potential donors. Then, they found Xapien which has since centralised and streamlined reputational risk management.
Read MoreUniversity of Michigan
In 2018, the University of Michigan noticed troubling behaviour from donors, which prompted the institution to build a new due diligence process. The University set a $5 million threshold for due diligence, as donations of that size are often tied to major recognition events. To prevent bias, existing major donors making a new gift also undergo renewed due diligence. The development research team led the process, collaborating closely with the legal team to ensure they weren’t solely responsible for assessing risks. They could rely on the legal team to clarify real concerns versus standard business practices.
Read MoreKing’s College London
Xapien is continuously evolving and improving its product. As the tool develops, so do the use cases. KCL’s adoption of Xapien provides a great example of how an institution can effectively leverage the AI-powered tool to support a variety of departments across the university.
Read MoreWebinar: University of Michigan case study
The University of Michigan noticed growing concerns with certain philanthropists and decided to review its due diligence process. The research team led the development of a new approach, working closely with senior leadership, legal, and compliance teams. At first, they struggled with gathering too much information, but with input from legal and DEI teams, they refined their focus on key risks. They also created a decision matrix to align with institutional values and reduce bias. In 2020, the university launched a new process using Xapien, allowing them to generate comprehensive reports in just 10 minutes. This improved efficiency and helped them identify donor risks earlier on.
Read MoreWebinar: Prospect development—preparing for a world with AI
This webinar explores the evolution of prospect research and the transition from traditional methods to modern technology. Initially, researchers relied on manual data entry. But advancements in technology, particularly search engines and AI, have transformed the efficiency and accessibility of information. Despite these changes, the core mission of prospect research—maximising fundraising potential for nonprofits—remains unchanged. AI has simply enabled researchers to provide timely insights to fundraisers. They’re evolving from just information gatherers to strategic partners, collaborating with fundraisers to develop effective engagement strategies.
Read MoreAnglia Ruskin University
Anglia Ruskin University (ARU) faced challenges in maintaining a consistent due diligence process for international partnerships, which posed potential risks for the organisation. Due diligence was carried out manually, resulting in time-consuming efforts that often got deferred until the final approval stages. As a result, the university felt compelled to carefully evaluate the relationship, given the substantial time and effort already invested.
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