Technology Tools for Grantmaking Due Diligence

1
Technology Tools for Grantmaking Due Diligence

• Henry Bromelkamp, President
• Bromelkamp Company
• www.bromelkamp.com
• publisher of Pearl Grants Management software,
  used by 130 grant makers worldwide.

Conference Board 7 Dec 2004
2
Technology Tools for Grantmaking Due
DiligenceWhat is Due Diligence?

• Research to satisfy
• Legal Requirements
• Programmatic Needs
• Quality Standards

Conference Board 7 Dec 2004
3
Technology Tools for Grantmaking Due
DiligenceLegal Requirements

• confirmation of exempt status
• compliance with anti-terrorism rules
• good stewardship

Conference Board 7 Dec 2004
4
Technology Tools for Grantmaking Due
DiligenceProgrammatic Needs

• identity verification
• program plans
• geographic/community impact

Conference Board 7 Dec 2004
5
Technology Tools for Grantmaking Due
DiligenceQuality Standards

• organization mission
• history of success and failures
• charities registration (some states)
• leadership (board, staff)

Conference Board 7 Dec 2004
6
Technology Tools for Grantmaking Due
DiligenceWhen?

• customary practice
• comprehensive check on first request
• confirm legal requirements before each payment

Conference Board 7 Dec 2004
7
Technology Tools for Grantmaking Due
DiligenceIdentity Verification
ChoicePoint and many other services (e.g.
WestLaw, Lexis, Verisign)
Conference Board 7 Dec 2004
8
Technology Tools for Grantmaking Due
DiligenceIRS.gov

• check exempt status

Conference Board 7 Dec 2004
9
Technology Tools for Grantmaking Due
DiligenceGuidestar.org

• check exempt status

Conference Board 7 Dec 2004
10
Technology Tools for Grantmaking Due
DiligenceGuidestar.org

• check antiterrorism lists for US organizations

Conference Board 7 Dec 2004
11
Technology Tools for Grantmaking Due
DiligenceGuidestar.org

• background information

Conference Board 7 Dec 2004
12
Technology Tools for Grantmaking Due
DiligenceGuidestar.org

• strengths
• comprehensive, very up-to-date
• strong searching and analysis tools
• limitations
• does not include most churches
• does not include non-US organizations
• does not check aliases or common names (you need
  to know the EIN number or search by name or
  location)
• 990s come slowly from the IRS

Conference Board 7 Dec 2004
13
Technology Tools for Grantmaking Due
DiligenceGuidestar.org

• grants management software integration
• - Gifts (from MicroEdge)
• jumps to Guidestar.org and logs in
• - Pearl (from Bromelkamp Company)
• jumps to Guidestar.org and logs in
• captures applicant name and address

Conference Board 7 Dec 2004
14
Technology Tools for Grantmaking Due
DiligenceAntiterrorism Lists

• Attus www.attustech.com
• ChoicePoint (bought Bridger Systems)
  www.bridger.com used by 80 of banks and over
  3700 other organizations
• Language Analysis Systems www.las-inc.com
• Penley www.penleyinc.com
• and other companies (Google OFAC Compliance)

Conference Board 7 Dec 2004
15
Technology Tools for Grantmaking Due
DiligenceAntiterrorism Lists

• check individuals free online bridger.com
  NameCheck
• not a complete compliance solution

Conference Board 7 Dec 2004
16
Technology Tools for Grantmaking Due
DiligenceAntiterrorism Lists

• Bank of England
• Bureau of Industry and Security (Export/Import
  sanctioned entities)
• Canadian Consolidated List (OSFI)
• DTC Debarred Parties
• European Union Terrorism List
• FBI Hijack Suspects
• FBI Most Wanted
• FBI Most Wanted Terrorists
• FBI Seeking Information
• FBI Top Ten Most Wanted
• Interpol Most Wanted
• Non-Cooperative Countries and Territories
• OFAC Blocked Countries
• OFAC SDN list
• Politically Exposed Persons
• Unauthorized Banks
• United Nations Consolidated List
• World Bank Debarred Parties

• Bridger Insight (software)
• costs 750-1000
• licensed by volume, not number of users
• process batches, not real time
• misspellings/omissions diminish accuracy
• use from multiple locations (Windows/online)
• individuals and orgs US/non-US
• can include identity verification

Conference Board 7 Dec 2004
17
Technology Tools for Grantmaking Due
DiligenceAntiterrorism Lists
Bridger Insight
Conference Board 7 Dec 2004
18
Technology Tools for Grantmaking Due
DiligenceAntiterrorism Lists

• grants management integration
• software (Gifts, Pearl) exports a data file to
  list checking software
• real time integration (to eliminate the export)
  offered by Bridger, but not yet by grants software

Conference Board 7 Dec 2004
19
Technology Tools for Grantmaking Due
DiligenceAntiterrorism Lists Catch-22s

• some organizations have several names
• transliteration names from other alphabets
  (Chinese, Russian, Arabic) can be correctly
  spelled several ways
• you cant check names unless you collect names
  board? staff? volunteers?

Conference Board 7 Dec 2004
20
Technology Tools for Grantmaking Due
DiligenceOutside Data Sources

• geographic information systems (GIS) and mapping
• Census Bureau
• Post Office National Change of Address (NCOA)

Conference Board 7 Dec 2004
21
Technology Tools for Grantmaking Due
DiligenceDocument Your Work

• When

Conference Board 7 Dec 2004
22
Technology Tools for Grantmaking Due
DiligenceDocument Your Work

• What

Conference Board 7 Dec 2004
23
Technology Tools for Grantmaking Due
DiligenceOutsourcing

• Some grant makers hire third parties to verify
  and research grantees
• small grant makers (e.g. community foundation)
• international grants (e.g. Give2Asia)
• matching gifts (e.g. JK Group)

Conference Board 7 Dec 2004
24
Technology Tools for Grantmaking Due
DiligenceConclusions

• assess your need/risk
• use technology tools to manage risk
• collect enough data to make the technology tools
  effective (review organizations only? individuals
  too?)
• document your results
• interpret results to indicate further
  consideration and research

• Thank you.
• Henry Bromelkamp, President
• Bromelkamp Company, 106 E 24 St, Minneapolis MN
  55404
• 612-870-9087 henry_at_bromelkamp.com
  http//www.bromelkamp.com

Conference Board 7 Dec 2004