Global Grantmaking

These resources are for U.S. foundations and grantmakers wishing to make grants abroad. The resources below focus on global grantmaking in general.

In-Depth Topics Under Global Grantmaking:

anti-terrorism
equivalency determination and expenditure responsibility
grantmaking rules by country

In-Depth knowledge on Global Grantmaking

While philanthropy that crosses national borders has much in common with its domestic counterpart, it also differs in significant and challenging ways. Language differences, communication across vast distances, unfamiliar cultural values and perspectives, multiple legal systems, and disparate accounting practices are a few of the factors that distinguish international from local or national philanthropy and contribute to its complexity. Moreover, international philanthropy takes place against a complex backdrop of international politics, geo-power dynamics, government stipulations, and cultural and religious traditions, with a potentially greater degree of uncertainty and unpredictability. However, with the high level of need and the cross-border nature of many of the challenges the world faces today, there is also a greater sense of responsibility and a tremendous opportunity to make a difference with even modest contributions. In view of these challenges, how can independent funders ensure that their international philanthropy is carried out in an accountable and responsible manner?

This brief provides practical advice and tips on setting strategy, ensuring an on-the-ground presence, and selecting partners for U.S.-based companies with foundations and/or giving programs that are either venturing into the international giving arena or seeking to enhance their current programs. The last section highlights the importance of maintaining legal compliance.

Legal issues arise when a private foundation makes a grant to an Initial Grantee that is not a 501(c)(3) organization or that re-grants the Foundation's funds to a Secondary Grantee that is not a 501(c)(3) organization. Most of those issues center around IRS expenditure responsibility rules: specifically, which organization—the private foundation or the Initial Grantee—is responsible for adhering to those rules, if any.

For international grants, the Pension Protection Act requires donor-advised funds to comply with certain rules imposed on private foundations. Sponsoring organizations administering international grants from advised funds have adopted various practices to comply with the new requirements. This article discusses these changes, along with a brief description of the new rules.

G L

NGOsource

NGOsource, a project of the Council on Foundations and TechSoup Global, helps U.S. grantmakers streamline their international giving through easier equivalency determinations.