The Asia Foundation is a nonprofit international development organization committed to improving lives across a dynamic and developing Asia. Informed by six decades of experience and deep local expertise, our programs address critical issues affecting Asia in the 21st century—governance and law, economic development, women's empowerment, environment, and regional cooperation. In addition, our Books for Asia and professional exchange programs are among the ways we encourage Asia's continued development as a peaceful, just, and thriving region of the world. Headquartered in San Francisco, The Asia Foundation works through a network of offices in 18 Asian countries and in Washington, DC. Working with public and private partners, the Foundation receives funding from a diverse group of bilateral and multilateral development agencies, foundations, corporations, and individuals.
Since its inception, the Foundation has paid close attention to the due diligence process for prospective grantees, and regularly monitors grantee programs and finances. The Foundation operates through a network of 18 offices in Asia. Through these offices, we conduct due diligence locally, with site visits to prospective grantees and extensive discussions with their principal staff throughout the life of every project.
The Asia Foundation is committed to ensuring that any grants made to on-the-ground partners are not used to support any form of violent political activity or terrorist organizations. We enforce our commitment by conducting rigorous due diligence of prospective grantees. Although The Asia Foundation is a public charity as defined by the Internal Revenue Service, our due diligence process conforms to the more rigorous expenditure responsibility rules required of private foundations. In addition, the Foundation closely monitors and is in full compliance with the U.S. Government’s recent regulations and guidelines regarding anti-terrorist financing practices.
Organizational Due Diligence
- Review of prospective grantees’ articles of incorporation, by-laws, and other documentation to ensure the organization’s charitable purpose and that it has an appropriate governance structure;
- Confirm registration with government authorities where this is required by local law;
- Automated checking of organizations and individuals against lists of ineligible recipients published by the U.S. Department of the Treasury and other federal agencies;
- Review of annual and other program reports to determine organizational experience, capabilities, and track record;
- Assess organizational reputation in-country, before local audiences;
- Review of financial information;
- Current and past budgets showing sources/uses of revenue;
- Periodic reports on operations and use of Foundation-granted funds; and
- Internal or independent financial reviews and audits depending on size of grant.
Project Due Diligence
- Pre-grant inquiries to determine the prospective grantee’s ability to comply with the terms of a grant and fulfill project objectives;
- A written grant agreement with specific provisions setting forth mutual responsibilities, signed by both parties;
- Grantees are required to maintain grant funds in a segregated bank account;
- Periodic written reports from the grantee to the Foundation are required through the life of the project, typically on a semi-annual basis; and
- Disclosure to the IRS of basic information about the grant, in the Foundation’s annual 990 submission (as well as in a separate Foundation publication).
For more information on The Asia Foundation’s due diligence capabilities and accountable grantmaking, please contact:
Assistant Director, Resource Development