U.S. Regulation of International Philanthropy

United States anti-terrorism and other domestic regulations have an impact on the flow of philanthropic funds both into and out of the U.S. which must be understood by funders looking to practice international philanthropy. The Council is dedicated to ensuring that barriers to cross-border philanthropy are minimized and educating members and other funders on how to properly and legally fund across borders.

These resources will help U.S. foundations and grantmakers understand and comply with U.S. regulations for cross-border philanthropy. General resources are found on this page; links to specific subtopics are below. 

In-Depth Topics Under Global Regulation of Philanthropy:

Anti-Terrorism Compliance
Equivalency Determination & Expenditure Responsibility

In-Depth knowledge on U.S. Regulation of International Philanthropy

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.