b'OUR FRAMEWORK FOR GRANTEE DUE DILIGENCEGuided by CAF Americas 3Rs of International Grantmaking 1) Taking a Risk-Based Approachregulatory compliance, risk mitigation, and reputationCAF America takes a risk-based approach to charity protectionour services ensure safe and effectivevalidation and grantmaking. This allows us to manage international giving.risks rather than avoiding them altogether, and leads to more flexible, innovative, and ultimately accessible grantmaking. Our team leans on our 30+ years of experience to evaluate each of our grantees individually and determine how we can approve their support.2) Support for Grassroots OrganizationsOur Board of Directors and Staff strongly feel that it is important and necessary to support local, grassroots organizations where possible, and in many of cases where these types of organizations are either not registered as charities in their countries or cannot fulfill all documentation requirements, such as having audited financial statements. Our review process will flag these differences as potential risk indicators and will work with both the donor and the grantee to mitigate those risks through a variety of tools, but we do not immediately dismiss them as viable grantees when such indicatorsare identified. 3) Enhanced Expenditure ResponsibilityCAF Americas Enhanced Expenditure Responsibility service provides unparalleled assurance that your gifts are used for their intended purposes. We go above and beyond the IRS requirements of Expenditure Responsibility (ER), which is one of two tools the IRS provides for cross-border giving. ER enables U.S. grantmakers to grant funds to charitable projects or organizations not recognized as 501(c)(3) public charities.10 CHARITIES AID FOUNDATION AMERICA | APPROACH TO BENEFICARY DUE DILIGENCE'