Organizations that have been validated by CAF International have completed an extensive application and due diligence process with one of the CAF International’s Global Offices. The CAF International Validated Organization Badge is awarded to organizations that are structured and operated as nonprofit entities. This is confirmed by a validation process that goes far beyond a simple reliance on a foreign government database.
The CAF International validating process includes a review of an organization’s key operational elements such as their governance structure, registration status, annual financial statements, online and media presence, and their board members and senior staff. This validating process ensures that all funds sent to the organization will be used charitably, and it allows the CAF International and their donors to mitigate the risk of fraud, money laundering, and other criminal activities.
CAF International relies on a proprietary risk-based approach to organization validating, which enables us to adapt our application requirements and manage our grantmaking based on the risk indicators identified throughout the due diligence process. The risk-based approach is recommended by and built into the policies of The Fourth EU Anti-Money Laundering Directive, FATF, and other regulatory bodies. Risk indicators include factors such as:
- Country in which the organization is located, using CAF’s proprietary country risk index
- Length of operation
- Financial sustainability and presence of financial controls and oversight
- Whether its mission and operations can be independently verified through external sources
- Outcomes of adverse media review and background checks on board members and senior staff, etc.
Charity Application Process
If you are a charity and are interested in receiving the CAF International Validated Organization Badge to place on your website and to be eligible to receive grants from the CAF International, your organization must submit a complete, signed eligibility application form, known as the Grant Eligibility Application (GEA). In addition to the general application, an organization will be asked to sign a grant agreement and submit supporting documentation, including:
- Governing documents
- Financial statements
- List of current directors and/or trustees and senior staff
- Proof of charitable or not-for-profit status
Once CAF International receives your completed, signed GEA and supporting documents, our grants team begins an extensive review of the organization and will follow up with any additional questions. CAF International will automatically reach out to you to collect this application if we are working with a donor who would like to make a grant to your organization. If you want to begin this process proactively, please email us at email@example.com.
CAF International Validated Organization Badge | What Does This Mean for Our Donors?
As you are considering advising a grant, if you see an organization that displays this badge on their website, you can be assured the organization has completed our extensive due diligence process as described above. The CAF International Validated Organization badge is a digital seal distributed and protected via the Accredible system, with which CAF International has partnered to deliver and manage badges for its vetted organizations.
It is important to be aware that the presence of a badge on an organization’s website is not a general license to give, and it’s important to understand the regulatory requirements for cross-border giving, depending on your country of residence as the donor. Organizations that possess the CAF International Validated Badge are able to receive grants from International. Donors who want to give directly to these organizations, without working with CAF International, will need to ensure that they are following the legal requirements in their country.