[Editor’s Note: On Sept. 18 & 19 BCLC will host its annual Global Corporate Citizenship Conference at the U.S. Chamber headquarters. The conference and its corresponding report, "Development 2.0: Changing the Way Globalization Works," will focus on solving problems that affect global development. The following article, an excerpt from the report, is an example of problem-solving.]
Although international philanthropic giving from U.S. corporations is growing rapidly, the overall environment for international giving remains challenging.
With global corporations responding in larger measure to international disasters, the need for ease of doing business is essential to philanthropy. U.S. tax regulations for private foundations, including corporate foundations, require a level of due diligence concerning prospective grantees that exacts a high toll in terms of staff, time, and patience — and not just on the corporation but also on the non-governmental organizations (NGOs).
It is a measure of the commitment of corporate grantmakers that they are figuring out what they need to do and finding ways to do it responsively and responsibly.
Currently, grantmakers may take advantage of the IRS "equivalency determination" option to make direct grants to non-U.S. based NGOs that do not have IRS 501(c)(3) status.
That is, a private foundation may determine that an organization is the equivalent of a U.S. public charity. Obtaining information to meet the equivalency determination rule is both time-consuming and expensive.
Grantmakers spend an average $30,000 to $50,000 annually and use hundreds of hours of often very limited staff time to make equivalency determinations.
A centralized repository of information on non-U.S. based NGOs could save millions of dollars.
Continue reading ""Good Faith" Information Will Speed Aid" »
