Effective July 30, 2018, the IRS published final regulations for Substantiation and Reporting Requirements for Cash and Noncash Charitable Contribution Deductions. These updates guide individuals, partnerships, and corporations making charitable contributions on how these contributions should be substantiated and reported in order for them to be legally tax-deductible. These regulations clarify existing regulations by adding new… CONTINUE READING >>
In Brief Donors in the United States may not give directly to Indian nonprofits and receive a tax deduction in the US. By giving through CAF America, US donors can make tax effective donations to any successfully vetted foreign charitable organization. Giving to a foreign nonprofit without conducting due diligence on the organization and its… CONTINUE READING >>
From time to time, our conversations with donor clients or charity partners reveal certain misconceptions within the philanthropic sector. One issue that continues to surface is that giving to Canadian charities is easy. Alas, it isn’t so simple. This piece addresses the erroneous belief that grantmaking into Canada does not require any due diligence. While… CONTINUE READING >>
The United States is a key source of funding for charitable organizations and causes across the globe, but soliciting donations in the US can be a complex and burdensome process. To start, let’s stay within the US borders. The Internal Revenue Service (IRS) certifies the creation and oversees the activities of all charitable organizations in… CONTINUE READING >>
The IRS released an important notice regarding donor advised funds (DAFs) on December 4th, 2017 and has begun soliciting public comments on a number of issues concerning distributions from DAFs. While at this time only Section 4 has been posted by the IRS as guidance taxpayers may currently rely on, there is much to learn… CONTINUE READING >>
The China Overseas NGO Management Law, officially the “Law of the People’s Republic of China on Administration of Activities of Overseas Nongovernmental Organizations in the Mainland of China” went into effect January 1, 2017. The law requires that foreign NGOs coordinate their efforts with the Ministry of Public Security (MPS) and provides the framework within… CONTINUE READING >>
As the leader in global giving, CAF America often receives questions from both prospective donors and charities asking whether we offer fiscal sponsorship services. The existing definition of “fiscal sponsorship” leaves significant space for interpretation, however, it is a term that has been resurfacing with increased frequency. We want to take this opportunity to dig… CONTINUE READING >>
Civil society organizations (CSOs) around the world have recently recorded a victory that could be more than a small step toward regaining access to international funding. Moreover, the 25th of June, 2016, when FATF issued a string of revisions related to the implementation of its recommendations, may even mark – as highlighted by Adam Pickering,… CONTINUE READING >>
As of January 2016, the IRS proposal on gift substantiation has been withdrawn. The proposed regulation would’ve resulted in nonprofits collecting, storing and reporting donors’ Social Security numbers. The Substantiation Requirement for Certain Contributions, a voluntary reporting regime proposed by the IRS, has been one of the most recent victims of public outcry. In line… CONTINUE READING >>
Just in time for your year-end giving, Congress has passed and the President has signed, the Protecting Americans from Tax Hikes (PATH) Act of 2015. The Act has rendered the once temporary and subject to yearly renewal, IRA Charitable Rollover, permanent law. In line with the Act’s “Incentives for Charitable Giving” section, US citizens over… CONTINUE READING >>
Effective 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… CONTINUE READING >>
by JANE PEEBLES, J.D. As the world becomes increasingly globalized, international charitable giving by Americans has been steadily, and dramatically, increasing. Contributions by U.S. individuals and private foundations to fund charitable projects abroad are subject to complex tax rules. However, there are several of alternatives to effectuate international charitable giving while ensuring tax deductions… CONTINUE READING >>
Understanding the New Anti-Money Laundering Law and its Effect on Charitable Organizations Ted Hart, CEO – CAF America On September 1, 2013 a new law entitled “The Federal Law for the Prevention and Identification of Operations with Illegally Acquired Funds” went into effect in Mexico. The law was largely enacted to protect the national economy… CONTINUE READING >>
Ted Hart, CEO – CAF America In an ever-shrinking world, U.S. grantmakers are increasingly turning their attention to charitable organizations beyond our borders. Before seeking to expand one’s philanthropic vision to include foreign organizations, it is important to understand the complexities that accompany giving internationally. Between the intricate nature of the tax code and the… CONTINUE READING >>
When deciding to make a tax deductible donation, many philanthropists limit their gifts to domestic charitable organizations that are registered as 501(c)(3) non-profit corporations. International giving is an option…Learn more.
In 2005, philanthropic contributions by individuals reached an all-time high, accounting for 2.4% of disposable income. In the subsequent decade we have seen that number fluctuate due mostly to economic hardship and general financial volatility worldwide. Despite facing many of the same issues that can negatively affect American non-profit organizations, however, foreign charitable organizations have enjoyed a rapid increase in giving over the last decade.