Beyond the checklist: Rethinking CSO due diligence in complexity

Dawit Dessie

When I was in grad school, there was a strong push to limit overhead expenses to just 10%. This movement argued that 90% of an organization’s budget should go directly into project activities. However, this perspective was primarily aimed at international non-governmental organizations (INGOs). It was often assumed that local organizations needed the same restructuring, even though they operate differently from INGOs. This assumption led to the imposition of INGO-style due diligence processes on civil society and community-based organizations, causing stress and anxiety when seeking funding opportunities.

Why does due diligence create such stress and anxiety? To answer that question, we must understand what it involves. As a requirement imposed by funders, its formats can vary widely. For example, bilateral funding sources such as USAID have stringent requirements, which may include retaining paperwork for up to seven years and the responsibility of finding storage space. Many who have experienced various forms of due diligence feel frustration and anxiety because the process is a one-way examination into the inner workings of local civil society organizations, and starts from a position of distrust.

This is an excerpt of a blog written by Dawit Dessie. To read the piece in its entirety, head to the #ShiftThePower Treehouse.