Our Approach to Intentional Risk Management
Our Work and Purpose
Responsible philanthropy is realized through shared standards, informed judgment, and trust between funders and civil society organizations. As a public charity, our goal is to create a shared understanding of risk and accountability in philanthropy, particularly in complex or cross-border contexts.
We do this by combining applied due diligence support with research and learning to benefit the wider sector.
This page explains how we think about due diligence, how our assurance levels are structured, and what it means when an organization has completed an evaluation with us.
Risk-Based and Proportionate Frameworks
Not all grants, organizations, or operating environments carry the same level of risk. For this reason, we use a graduated diligence framework that aligns the depth of review with the nature of the activity, the regulatory context, and the potential risks involved.
To implement this graduated diligence framework, we avoid one-size-fits-all models and are sensitive to organizational capacity and operating context. We also partner with local experts to inform both our processes and the organizations we assess.
Our Assurance Levels
Core
A Core evaluation focuses on establishing basic eligibility and legal standing and confirms that no immediate legal or reputational barriers to funding are present. This level typically includes:
- Verification of legal existence and registration status
- Confirmation of mission-aligned purpose
- Sanctions and reputational screening
- Confirmation the organization has a bank account in its name
- Confirmation of organization’s ability to accept foreign funds under applicable local law
Standard
A Standard evaluation examines how an organization governs and manages its work and the systems it has in place to manage funds and protect people. In addition to what is checked at the CORE level, Standard assurance typically includes:
- Governance and leadership structures
- Financial management practices and internal controls
- Safeguarding and protection policies
- Legal compliance and regulatory considerations
Enhanced
An Enhanced evaluation is used where operating environments, scale, or complexity require deeper assurance. In addition to the Core and Standard levels, this level typically includes:
- Risk management and accountability systems and policies
- Anti-fraud, integrity, and whistleblowing practices
- Partner or intermediary due diligence
- Monitoring, evaluation and learning practices
- If desired, site visits may be undertaken
Equivalency Determination on Record
Organizations that have successfully undergone the equivalency determination (“ED”) process may display a badge indicating that an ED that is in compliance with U.S. Treasury Regulations and Revenue Procedure 2017-53 has been completed and recorded.
This badge reflects a specific regulatory determination that was made at a given point in time. It is not an indication that funders can rely on such a determination indefinitely. To inquire about an organization’s current ED status, or to request an ED on behalf of your organization, please contact us at team@latitudeglobal.org.
In addition to EDs, we offer Expenditure Responsibility and Program Related Investment due diligence services for U.S-based funders, as further described below.
Due Diligence Assurance Badges
Organizations displaying a Latitude Global assurance badge have completed an evaluation at one of the assurance levels described above.
Our goal in offering assurance badges is to make diligence processes more transparent and proportionate — supporting equitable and sustainable partnerships rather than creating new barriers.
They do not indicate endorsement, certification, or ongoing approval, nor do they imply that a determination remains current beyond the date shown. Each review is conducted according to context and need. For example, an “Enhanced” review is reflective only of the complexity and depth of the assessment in comparison to a “Core” or “Standard” review, and not a judgment on organizational quality or capability.
Due Diligence for U.S.-Based Funders
Our team also includes attorneys and compliance experts versed in U.S. tax-exempt law requirements specific to U.S. funders. As such, we are able to support philanthropic diligence that aligns with IRS-approved mechanisms for giving domestically and internationally, e.g. equivalency determinations (“ED”), expenditure responsibility (“ER”), and program-related investments (“PRI”).
Equivalency Determination
Latitude Global conducts EDs on organizations anywhere in the world, in full compliance with U.S. Treasury Regulations and Revenue Procedure 2017-53, meeting both the “special rule” articulated by the Treasury Department, and “preferred written advice” proposed by the IRS. Both funders and civil society organizations consistently praise our timeliness, ease of process, responsiveness, and ability to simplify complex tax requirements. As part of the ED process, we also commonly work with organizations to help them bring their governing documents into compliance with 501(c)(3) standards.
Expenditure Responsibility and Program-Related Investments
As with all of our services, our ER and PRI diligence is focused on reducing risk by helping funders and their grantee partners understand applicable frameworks and streamline their compliance. Our ER and PRI diligence services incorporate, as needed, educational advice, samples, applicable memoranda to funders, and multilingual support to organizations, while also collecting key data that funders need to meet their tax obligations.
An Evolving Practice
To reflect the reality of changing due diligence standards, risk appetite, and operating contexts, we are committed to continually evolving our work based on experience, learning, and close dialogue with funders and civil society organizations.
Access AND HOw we Work
As a public charity, our work is designed to expand access to responsible, sustainable philanthropy through education and support, combined with services for charitable donors. Our programs are supported by a combination of grants and service fees.
Because due diligence varies by context, risk and organizational capacity, we focus on understanding each situation and working with funders to determine what level of support is appropriate.
If you are interested in our work or would like to explore whether our approach could be helpful to your context, we welcome a conversation.
Contact us at team@latitudeglobal.org.