Charities: due diligence, monitoring and verifying the end use of charitable funds

Trustees must carry out due diligence checks on donors, beneficiaries and local partners and can also monitor end use of funds.

Applies to England and Wales


Chapter 2 Tool 3: PESTLE analysis

Chapter 2 Tool 4: Risk matrix


The public and those donating to charity should have confidence that money donated is used for legitimate purposes and is reaching its intended beneficiaries.

Chapter 2 of the Charity Commission’s Compliance toolkit, this guidance:

  • makes all trustees aware of their legal duties and responsibilities in carrying out appropriate due diligence checks on those individuals and organisations that give money to, receive money from or work closely with their charity
  • explains how to to identify and manage any associated risks
  • gives trustees practical advice on carrying out proper monitoring and verification of the end use of funds where charities give money to local partners and beneficiaries

Updates to this page

Published 3 January 2011

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