Scenario:
Hypothetical Due Diligence on a Multi-Year Ramadan Fundraising Campaign
Due Diligence Exercise
Let’s call this example “The Campaign”. Over several years, it has multiple publicly visible fundraising entries on platforms such as LaunchGood, JustGiving, and GoFundMe.
This scenario is meant to show how a volunteer fundraiser can apply due diligence in a real-world crowdfunding context.
1. Start with the Basics — What a Donor Asks
Q: Has the organisation provided clear reporting of how donations were spent?
Many crowdfunding pages show totals raised, but often there is no itemised expenditure report for each year.
Reflection: A thoughtful donor might reasonably ask for such reports before giving again.
Q: Is there a breakdown by project or initiative?
Campaign pages often list multiple goals or programmes but usually do not show exact allocation per project.
Reflection: Without a project-by-project breakdown, it’s hard to know which initiatives are fully funded.
Q: Are cumulative totals over multiple years documented and verifiable in one place?
Public pages display yearly totals scattered across platforms, no single consolidated overview exists.
Reflection: Donors may want a multi-year summary to understand the full fundraising picture.
2. Governance & Oversight — Structural Questions
Q: Who is responsible for financial decisions, an independent board, trustees, or founder-led leadership?
Some organisations list boards; others highlight founder control without clear separation.
Reflection: Donors may ask for clarity on governance structures to ensure independent oversight of funds.
Q: Are financial statements publicly accessible or available to donors on request?
Crowdfunding platforms do not automatically provide audited accounts.
Reflection: Volunteers might request annual reports or independent audits before promoting the campaign.
3. Operational Transparency — Income Streams & Accounting
Q: Does the organisation run paid courses or other revenue-generating activities alongside donation-funded work?
Paid classes, subscriptions, or memberships exist alongside donations.
Reflection: Donors may ask how income from paid services is separated from donation funds.
Q: Are these revenue streams formally reported and distinguished from donations?
Public campaign pages rarely show detailed accounting for each revenue type.
Reflection: Clear reporting protects the amānah and ensures donors know how funds are used.
Q: If infrastructure (e.g., a building) is funded by donors, are rental/subletting revenues tracked separately?
Public pages do not usually show this level of detail.
Reflection: Donors concerned about transparency might ask for full facility-related revenue reporting.
Q: Has the organisation disclosed sponsorship or support that relates to founder time/labour (even if framed as selfless service)?
Crowdfunding pages seldom provide this information.
Reflection: Donors may inquire about whether founder income or stipends are paid from donation funds.
Q: Are parallel donations, grants, or recurring memberships fully visible?
Some campaigns mention Patreon or repeat donations; others do not summarise them.
Reflection: Full visibility of all income streams allows donors to see the total fundraising picture.
4. Support for Volunteers & Beneficiaries
Q: Are volunteers and paid staff supported transparently?
Campaign pages rarely detail volunteer reimbursements or staff funding.
Reflection: Donors may want to understand how labor costs fit into the budget.
Q: Are free or subsidised beneficiary services tracked separately?
Public campaign pages seldom include usage stats or beneficiary numbers.
Reflection: Clear reporting allows donors to see the impact of their contribution.
5. Outcomes & Impact — What Happens with the Money?
Most crowdfunding pages provide qualitative descriptions, not independent metrics.
Reflection: Donors may request verification or documented impact to assess effectiveness.
Q: Is the mission and financial use aligned?
Without detailed reporting, alignment is hard to judge.
Reflection: Transparency and measurable reporting build confidence in the campaign’s integrity.
6. Ethical Reflection & Opportunity Cost
Q: Am I confident my donation will be used as intended, rather than being diverted due to unclear accounting or mixed revenue sources?
Reflection: Thoughtful donors often compare giving choices. When reporting is clear, volunteers can promote campaigns responsibly. When it is unclear, pausing or asking questions protects both donor trust and personal accountability.
Key Takeaways for Volunteers
- Crowdfunding is a tool, not a guarantee of accountability.
- Your role is amānah-conscious promotion. Donors rely on your diligence.
- Ask questions and request documentation when transparency is missing.
- Encourage multi-year reporting to show the full financial picture.
- Ensure income streams and expenses are clearly separated from personal or founder benefit.
- Document impact and outcomes to support ethical fundraising.