Year End Giving
As the holiday season and New Year approach, many people look forward to being festive, spreading good cheer, and sharing gifts with others. This spirit of generosity and giving often extends to charitable organizations, and they rely upon the boon in philanthropy it brings. If you are planning to make a gift to a charitable organization before the end of 2014, your donation’s positive impact may be all the satisfaction you need. Getting satisfaction from your gift, however, does not preclude you from enjoying the tax benefits associated with charitable donations. While your gifts may be eligible for tax deductions no matter the time of year they are made, the deadline for gifts eligible to be claimed for the 2014 tax year is December 31, 2014. Now is the time to decide on a cause and plan your year end gift!
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. Unfortunately for many donors, this also limits the scope of the causes they may seek to support. Donors, especially around the end of the year, tend to overlook foreign charitable organizations for this reason. CAF America’s broad range of global grantmaking services provides you with more options when crafting your philanthropic vision. Additionally, CAF America’s industry leading due diligence ensures that your foreign charitable donations are made securely and meet the Internal Revenue Services’ stringent standards for tax deductible giving. With CAF America, the giving process is streamlined and the administrative burden is lifted, leaving you free to be satisfied with the mutual benefit of your generosity.
CAF America offers several options for making a gift to a foreign charitable organization this holiday season. Whether you are making an international donation for the first time or you already have a relationship with a foreign charity, CAF America has a service that will work for you.
Donor Advised Gift
Single gifts are a simple and cost effective solution for any individual or corporation looking to establish a connection with a foreign charitable organization. Working with CAF America’s global grantmaking experts, you can find the organization that best demonstrates your philanthropic vision. By making a Donor Advised Gift (DAG) through CAF America, you avail yourself of the following services:
• Foreign charitable organization due diligence included
• Expedited grantmaking to over 181,000 organizations
• Wire transfers for all grants
• Donors can recommend that gifts go to a specific organization, cause, country, or region
• A receipt for a tax-deductible contribution to CAF America
• 20 years of expertise in global grantmaking
• Connection to global solutions via the CAF Global Alliance
CAF Americaensures that all grants are made to legitimate charitable organizations and that funds are used for their intended purpose. More information on the fees associated with making a DAG can be found here.
Equivalency Determination
Equivalency determination is the method by which CAF America vets a foreign charitable organization to make a good faith determination as to whether or not its purpose is equivalent to that of a domestic 501(c)(3) corporation. Recent changes in American tax law allow philanthropists to rely on the expert advice of global grantmaking professionals when choosing the foreign charity that best meets their philanthropic goals. There are two options available to donors when making a gift using CAFA’s equivalency determination service.
Option 1: Equivalency Determination with CAF Grantmaking (CAF America makes the grant)
• You may recommend any charity located in any part of the world as the recipient of your grant
• CAF America provides its expertise in due diligence and the vetting process
• CAF America handles all administrative tasks associated with making the grant
• All grants are transmitted via wire service
Option 2: Issuing a Standalone Equivalency Determination Certificate (CAF America does not make the grant)
• You may recommend any charity located in any part of the world as the recipient of your grant
• CAF America provides its expertise in due diligence and the vetting process
• You retain the ability to conduct grantmaking activities
• The ED Certificate is issued to you, in your name or that of your organization
Donor Advised Fund
One additional option for donors looking to establish a more permanent presence in global giving is CAF America’s Donor Advised Fund (DAF). The DAF is designed to support ongoing charitable programs which require fund management services, including activity statements and online account access. DAFs can also be used as an effective tool for donors looking to pool their resources for a common cause or as part of a larger philanthropic schedule. Establishing a Donor Advised Fund offers the following benefits:
• Unlimited fully tax-deductible contributions of any size
• Wire transfer of all grants for secure and verifiable distribution
• Weekly grant distributions to expedite the impact of your program
• Dedicated support and personal, timely service
• Password protected online access to fund information
• Connection to global solutions via the CAF Global Alliance
The Donor Advised Fund provides you with the opportunity to give with confidence while also saving you time and money. For more information about establishing a Donor Advised Fund with CAF America, please read our brochure here.
With each of these services, , you can be sure that the professionals at CAF America will be on hand to craft a cost effective and mutually beneficial philanthropic plan for you or your organization. There is no one right way to make a gift this season, but CAF America is here to help you determine which of the tools we’ve discussed today is the best fit for you.
