Due Diligence & Privacy Policy

Due Diligence

The Asia Foundation is an international nonprofit organization working to solve the toughest social and economic challenges in Asia and the Pacific. Informed by more than 70 years of experience and deep local knowledge, we work with partners across more than 20 countries through 17 offices to improve lives and expand opportunities. 

Since its inception, the Foundation has paid close attention to prospective grantees’ due diligence process and regularly monitors grantee programs and finances. Through our offices, we conduct due diligence locally, with site visits to prospective grantees and extensive discussions with their principal staff throughout every project’s life.

The Asia Foundation is committed to ensuring that any grants made to on-the-ground partners are not used to support any form of violent political activity or terrorist organizations. We enforce our commitment by conducting rigorous due diligence of prospective grantees. Although The Asia Foundation is a public charity as defined by the Internal Revenue Service, our due diligence process conforms to the more rigorous expenditure responsibility rules required of private foundations. In addition, the Foundation closely monitors and is in full compliance with the U.S. Government’s recent regulations and guidelines regarding anti-terrorist financing practices.

Organizational Due Diligence

• Review of prospective grantees’ articles of incorporation, by-laws, and other documentation to ensure the organization’s charitable purpose and that it has an appropriate governance structure
• Confirm registration with government authorities where this is required by local law
• Automated checking of organizations and individuals against lists of ineligible recipients published by the U.S. Department of the Treasury and other federal agencies
• Review of annual and other program reports to determine organizational experience, capabilities, and track record
• Assess organizational reputation in-country, before local audiences
• Review of financial information
• Current and past budgets showing sources and uses of revenue
• Periodic reports on operations and use of Foundation-granted funds
• Internal or independent financial reviews and audits, depending on the size of the grant.

Project Due Diligence

• Pre-grant inquiries to determine the prospective grantee’s ability to comply with the terms of a grant and fulfill project objectives;
• A written grant agreement with specific provisions setting forth mutual responsibilities, signed by both parties
• Grantees are required to maintain grant funds in a segregated bank account
• Periodic written reports from the grantee to the Foundation are required throughout the life of the project, typically on a semiannual basis
• Disclosure to the IRS of the necessary information about the grant in the Foundation’s annual 990 submissions (as well as in a separate Foundation publication)