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.

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.

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.