Nonprofit Validation

Nonprofit validation is a foundational step in responsible philanthropy, ensuring that charitable resources are deployed effectively, ethically, and in alignment with donor intent.

This service provides a structured due diligence process to verify that an organization claiming nonprofit status is legally recognized under the laws of its country. It goes beyond a basic check, offering a verification of legal registration, entity type, public benefit status, and a review of organizational mission, based solely on publicly available information. This is a no-touch service, meaning Paragon does not contact or engage directly with the organization being validated.

Core validation steps include reviewing official documentation such as registration certificates, registry listings, and proof of current activity to confirm that the organization is legitimate, publicly registered, and aligned with charitable, educational, humanitarian, or cultural objectives. Validation may also draw upon publicly available governance information or details extracted from governance documents appearing on registry sites.

For grantmakers, companies, foundations, and social investors, especially those operating from the U.S., EU, Canada, Australia, or Switzerland, validation minimizes reputational and operational risk. It ensures funding and support are directed to credible, qualifying organizations while deterring fraud and enhancing compliance.

In cross-border contexts, where nonprofit regulation varies widely, validation helps uphold transparency, accountability, and ethical standards. It also supports alignment with voluntary best practices for governance and anti-terrorist financing safeguards.

Related service: The Rapid Validation & Screening (RVS) service incorporates these nonprofit validation steps as its foundational component and expands upon them by integrating additional risk-based screening measures, including sanctions, adverse media, and politically exposed person checks.