Nonprofits (or NGOs) based outside of the U.S. are usually not eligible to receive tax-exempt status here from the IRS. These NGOs may choose to form a brand new U.S.-based §501(c)(3) or to partner with an existing U.S.-based §501(c)(3) with a similar mission in order to be able to obtain tax-deductible donations from U.S. taxpayers. But U.S.-based nonprofits risk losing their tax-exempt status if they accept donations on behalf of organizations based in other countries without meeting certain IRS requirements. This article outlines the three key factors the IRS uses to determine whether or not a U.S. §501(c)(3) can accept donations on behalf of organizations based outside the U.S.Article - Conduit Organizations
It’s your charity’s first project in a foreign country – the funds you worked so hard to raise will finally be used to help people in need overseas. You’ve already been approached by enthusiastic people to work in-country, eager to implement your first project. What could go wrong? Well, quite a bit if you aren’t careful. How do you prevent or minimize these risks while making your donors happy, giving your workers a fulfilling experience, and ultimately furthering your mission?
Don’t miss this informative webinar for an overview of:
– Identifying and managing the key risks for U.S. charities working overseas;
– Considerations for determining business form or working with a local partner;
– Labor and employment considerations;
– What laws you will have to comply with, both US and local; and
– Avoiding the pitfalls of cross-border transfers of money.
Presenter: Aaron Lewis, Habitat for Humanity
U.S. nonprofits that operate internationally and open bank accounts in foreign countries need to be aware of the federal reporting requirements for foreign bank accounts. This article explains the filing requirements of FBAR.
Article: Reporting Requirements for Nonprofits with Foreign Bank Accounts
Does your nonprofit send volunteers on international trips? Do you provide funding for projects in third-world countries? Do you have chapters in other parts of the world? This webcast helps you address the legal issues that your organization may face when operating internationally, including:
- Sending money abroad,
- Employment issues,
- Contracting with foreign individuals or corporations,
- Fundraising in foreign countries, and
- Establishing nonprofits or chapters and affiliates in foreign countries.
Linda DiSantis, General Counsel, CARE USA
Eric Johnson, CARE USA