Expenditure responsibility is the federally mandated procedure that a private foundation—and some public charities—must follow for any grant made to an organization that is not a public charity. This chapter of Mastering Foundation Law: The Council on Foundations Compendium of Legal Resources focuses on the steps of expenditure responsibility when granting to non 501(c)(3) organizations.
U.S. funders may encounter a situation where the desired grantee is not a registered U.S. 501(c)(3) nonprofit. For funders making grants overseas, this is an extremely likely occurrence. In these instances, there are a number of legal routes to successfully funding the organization. Two of the most prevalent are equivalency determination and expenditure responsibility.
These resources will help U.S. foundations and grantmakers understand equivalency determination, expenditure responsibility, and the requirements for funding non-U.S. 501(c)(3) organizations.
In-Depth knowledge on Equivalency Determination & Expenditure Responsibility
Frequently asked questions about legal basics and anti-terrorism.