CAF America Connections Blog

Latest from the IRS: New Standards for Equivalency Determination

October 2, 2015

iStock_000020410226_webEffective September 25, 2015, the IRS and the Department of Treasury have published final regulations concerning the practice of Equivalency Determination (ED). The Reliance Standards for Making Good Faith Determinations is welcomed news for grantmakers, as it clarifies the standards to be applied by international grantmakers in the process of making a good faith determination that a foreign organization is the equivalent of a public charity; thus, grants made to that foreign organization may be qualifying distributions and not taxable expenditures.

Since 2012, CAF America has been conducting its activities abiding by the proposed IRS regulations that were released at that time. CAF America donors and partners can therefore expect a seamless implementation of these permanent regulations.  

The Reliance Standards for Making Good Faith Determinations clarify multiple aspects of conducting equivalency determinations (ED). Here are some of the key points:

Beyond addressing the standards applicable in ED, amendments were made to bring the final regulations into full compliance with statutory amendments made by the Deficit Reduction Act of 1984 and the Pension Protection Act of 2006. You can access the entire text of the final regulations on the IRS portal.

Want to learn more? Join us for the CAF America Radio Show!

The October 8, 2015 at 2:30 E.S.T edition of the CAF America Radio Network Show will further explore the changes and the effects of the final regulations.

Join Ted Hart, CEO of CAF America, who will be discussing the potential challenges and opportunities created by the finalized  regulations with Elizabeth Kingsley J.D., Attorney at Harmon, Curran, Spielberg + Eisenberg, LLP. The live show and subsequent podcast will be available here.



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