Grant money moves when the funder is confident about two things: that the NGO can receive the funds lawfully, and that the books will stand up to a later review. Pre-grant due diligence is the file that answers both.
At A K Sakaria & Associates we run this work for climate and development funders as well as for NGOs preparing for a grant. In one recent cycle we completed 35+ due diligence assessments in a single month; the funder sanctioned over ₹200 crore to the organisations reviewed. The volume is useful only because the checklist is the same on every file.
What the review usually covers
Legal existence and objects — trust deed or society rules, 12A / 80G, CSR-1 where relevant, and FCRA status if foreign funds are in play. Governance — trustee or board composition, related-party dealings, and whether minutes actually exist. Finance — last three years of audited statements, donor-wise utilisation, advances, and whether restricted funds have been ring-fenced. Tax — TDS on professional fees and rent, GST if the NGO has a taxable activity, and pending assessments. Operations — whether the programme budget in the proposal matches the NGO's actual capacity to spend.
Where files typically fail
Utilisation certificates that do not tie to the ledger. Corpus used as working capital. Related-party contracts without board approval. Old TDS defaults that surface only when Form 26AS is pulled. None of these are unusual. They are fatal if they are discovered after the sanction letter, not before.
A usable due-diligence report is short, referenced and honest. It states what was seen, what could not be verified, and what the funder should condition. That is the standard we apply from our Masjid East, Mumbai practice for NGOs and grant-makers across India.