It argues for an investment, not pleads for one. If the funder has taken the time to help an organization produce a solid plan that explains the benefits and risks clearly, then the argument to invest in it is a much easier decision to make. Quite simply, it is because of the history of failures by foundations to successfully support nonprofit businesses. We look at organizations and programs on a variety of levels. Paid staff and a volunteer grant review committee perform this function at Battlecreek.
Due diligence involves three steps.
Formal and informal research are conducted by staff. Formal research is thoroughly reading and reviewing the contents of a grant application. The third piece is carried out by the volunteer grant review committee, made up of representatives from the community. It is their role to review the information gathered by paid staff, assess whether the program and organizational mission is in line with the foundation's values and philosophy, and ultimately decide which grants will be approved or declined. The use of due diligence in grantmaking is not a science.