If you have family in other countries or philanthropic goals that cross political borders, you’ll be pleased to know that private foundations have a unique capability: Private foundation may grant directly to international charitable organizations, even when there is no IRS-recognized 501(c)(3) entity to serve as an intermediary.
There are numerous ways for foundations to grant to foreign charitable organizations. For example, some foreign charities are automatically recognized by the IRS because of their special status (e.g. the United Nations); others have set up a U.S.-based “friends of” organization that is a recognized 501(c)(3) public charity that may accept funds on their behalf. But when there’s no easy route to channel funds to a favorite organization overseas, Foundation Source can help your foundation make a grant by providing additional oversight, either by determining that the organization is “equivalent” to a U.S. public charity, or by exercising “expenditure responsibility.”
Foundation Source’s tax, legal, accounting, and philanthropic experts work together to help clients find the most expedient way to facilitate gifts to overseas organizations. They have enabled our clients to support an after-school boxing club in England, a university in Singapore, a microfinance organization in Peru, and a home for AIDS orphans in East Africa, among many others.