How to Automate Due Diligence in Grantmaking
Tips and tools for streamlining grantee due diligence checks using technology and pitfalls to avoid.
How to Automate Due Diligence in Grantmaking
Automating due diligence replaces manual file‑chasing with verifiable checks against trusted registers and documents, so decisions are faster and safer.
- UK‑ready checks: Charity Commission, Companies House and OFSI sanctions in one workflow.
- Document analysis: Read safeguarding, governance and financial policies for coverage and freshness.
- Audit trail by default: Every check is timestamped and saved to the case record.
What due diligence includes
At minimum, UK funders typically verify eligibility, governance and financial health before an award. Focus on:
- Legal status: confirm registration via the Charity Commission or Companies House, including status, trustees/directors and filing timeliness; refresh before each payment.
- Sanctions and adverse media: screen the OFSI consolidated list and reputable sources; record search terms, dates and findings at application and when circumstances change.
- Financial health: review filed accounts and verify bank details; capture income trends, reserves and liquidity indicators at application and mid‑grant for multi‑year awards.
- Governance and safeguarding: read uploaded policies to confirm key clauses, last review date and a named lead; require updates when documents expire.
A practical automation workflow
A practical automation workflow
- Applicant submits details and uploads policies and latest accounts.
- System verifies status with the Charity Commission and/or Companies House and screens sanctions via OFSI.
- Policies are read to confirm required clauses (e.g., safeguarding, conflicts, whistleblowing) and freshness.
- A concise report is generated with evidence links and risk flags for a human reviewer to approve.
Guardrails and pitfalls
- Keep people in the loop: a grants officer should approve the automated report and record professional judgement.
- Store only what you need, for as long as needed, in line with UK GDPR. Use role‑based access and encryption.
- Avoid black‑box scores; show sources and reasoning so reviewers can challenge and correct.
Why automate with Plinth
Plinth unifies UK checks – Charity Commission, Companies House and OFSI – with policy reading and financial extractions. Results are saved to the case record, and personalised feedback can be drafted for applicants when documents are missing or outdated. Start with due diligence and expand to assessment and reporting as confidence grows.
Citations and trusted sources
- Charity Commission register –
https://register-of-charities.charitycommission.gov.uk/ - Companies House –
https://find-and-update.company-information.service.gov.uk/ - OFSI Consolidated List –
https://sanctionssearchapp.ofsi.hmtreasury.gov.uk/ - Charity Governance Code –
https://www.charitygovernancecode.org/ - ICO guidance on data protection –
https://ico.org.uk/
About the author
Written by the Plinth Editorial Team – product and research specialists behind Plinth. Updated August 2025.
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Frequently asked questions
What documents should we always request?
Governing document, latest accounts, safeguarding and conflicts policies, and a bank verification document. Your context may require more.
Can automated checks replace references?
No. References and local knowledge are often crucial. Automation speeds routine verification so you have more time for judgement.
How often should we refresh checks for multi‑year grants?
At least annually and before each payment. Plinth can remind grantees to upload refreshed policies and rerun register lookups.
How do we handle applicants that are not charities?
Verify alternative legal status with Companies House or other regulators, and assess governance and safeguarding on the same principles.
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