Best Practices in Grantee Screening
International grantmaking entails an increased risk of diversion of charitable funds by terrorist organizations and their support networks. When making cross-border grants it is important to adopt specific practices that lessen these risks. Grantmakers that fail to take appropriate counterterrorism measures can face significant penalties if funds are diverted and U.S. OFAC regulations are violated.
Paragon's watch list screening service allows your private foundation, DAF, or grantmaking public charity to implement best practices in anti-terrorist financing screening, giving you peace of mind while reducing your cost and time spent complying with the provisions of the USA Patriot Act related to combating terrorist financing.
The U.S. Office of Foreign Assets Control (OFAC) takes a risk-based approach to compliance with counterterrorism regulations, and has published specific Voluntary Best Practices for US-Based Charities that grantmakers are encouraged to adopt. The U.S. Treasury Department has also published a Risk Matrix for the Charitable Sector to assist grantmakers. In response to these guidelines, Paragon offers two vetting packages to accommodate a grantmaker’s level of perceived risk. We recommend Silver Vetting as a minimum for any international disbursements.
Read Paragon's article in PEAK Grantmaking: Cross-Border Philanthropy and Counterterrorism Regulations: Guidance for U.S. Grantmakers
The San Francisco Foundation
Douglas B. Marshall, Jr. Family Foundation
Rodan + Fields Prescription for Change Foundation
Greater Kansas City Community Foundation
Seattle International Foundation
Communities Foundation of Texas
Marin Community Foundation