Funders are often dedicated to working with new nonprofits, both in established grantmaking areas and in emerging areas of interest. Some of the most innovative and high-impact work can be done with these organizations. At the same time, grantmakers have a responsibility as stewards of the organization's resources to assess the risk entailed in making grants to startups.Grantmakers will not necessarily avoid the risk but should go into each grant relationship with open eyes. Grantmakers want to prevent unpleasant surprises but also want to build in, as appropriate, assistance to the grantee — to help ensure success and to safeguard the expenditure of grant funds. The Tool for Assessing Startup Organizations is designed for use by funders assessing a grant application from a startup nonprofit. It is intended to supplement rather than to replace the current constellation of baseline information collected and focuses on indicators of organizational — rather than programmatic —health and capacity. The tool comes into play in the proposal review process after the funder has completed the initial due diligence process and determined the organization has a mission that is closely aligned with the funder's program goals and is the right organization to take on the work. The tool is not intended to produce a report card on a potential grantee.Rather, it is intended to help program officers assess and think through the nonprofit's strengths and weaknesses.