What if I told you that philanthropic due diligence isn’t actually about saying “no” to donations? That it’s not all about playing detective trying to catch bad actors? In this Prospect Research #ChatBytes episode, Courtney Cutler, Director of Philanthropic Due Diligence at Massachusetts Institute of Technology, reveals the surprising truth about this misunderstood field.
When most people hear “due diligence,” they imagine investigators digging up dirt to reject gifts. But as Courtney explains, that’s one of the biggest misconceptions in fundraising. The real goal? Moving gifts forward strategically while being aware of risks.
“The goal of due diligence is to be aware of risk and then use that information to help inform prospect strategy to keep moving gifts forward,” Courtney shares. It’s a complete reframe that transforms due diligence from a roadblock into a strategic accelerator.
The Leadership Challenge
Perhaps the most eye-opening part of this episode addresses a reality many researchers face: trying to build due diligence programs without organizational support. Courtney’s advice? Start socializing the concept throughout your organization, working your way up to leadership.
“You really need buy-in from your leadership or else it’s going to be an uphill battle at every turn,” she explains. And then she offers practical tips on how to get that buy-in.
Why This Matters Now
In our current political climate, due diligence is very important — and complex. Organizations need professionals who can navigate these nuanced waters while keeping philanthropic relationships moving forward.
Are you ready to dive deeper into the surprising world of philanthropic due diligence? Listen to our full 15-minute conversation with Courtney, where she shares practical tips for building sustainable due diligence programs, setting crucial boundaries, and why this field might be the perfect fit for researchers who love staying engaged with global affairs.
[Listen to the full episode of Chat Bytes here]
Additional Resources
- Connect with Courtney Cutler! LinkedIn
- Due Diligence: The Time is Now | blog post | Elisa Shoenberger | Aspire Research Group | 2021
- Upskill your Development Team with Research – Without Breaking the Budget! | blog post | Jennifer Filla | 2024
- Why Donor Due Diligence Is Crucial For Your Nonprofit’s Success | blog post | Lexis Nexis | 2023
- Tufts University and Xapien: A guide to donor due diligence | blog post | Xapien | Undated
- Due Diligence and Risk Mitigation in Donor Prospect Research | PDF download | Wealth-X | 2022
- Apra Due Diligence Toolkit [behind membership login]| Apra | Undated