Foundations often collect large amounts of money intended for community projects or other worthwhile purposes. It has been reported that the methods these organizations use for financial distribution are falling under closer scrutiny as donors are presented with more options. Foundations have to make sure money raised goes directly to the people and institutions for which it is intended.
Foundations need to be careful where they spend their money and who benefits from them. The newspaper in Muncie, Indiana, described how a new housing project will have to screen recipients to satisfy local concerns. The company wants to build housing for homeless citizens in the area, but a church next door is worried the new residents may have mental illnesses or criminal histories that could put its congregation in danger.
The company said it would perform a full background check to prevent people with a history of sexual misconduct from moving into the community. What the builder proposed as a background check is important, but it’s not the whole package.
All foundations need to be sure their money goes toward the organization’s intended purpose. This may mean obtaining criminal and civil background information on applicants applying for help. To avoid security compliance issues and to obtain as much information as possible, foundations can make use of third-party providers of background and reference checks. And, in this case, the could advise the builder of available services that will ensure the best possible use is made of the funds being provided!