Equivalency Determination vs. Expenditure Responsibility: Which Is Right for You?
How can donors with foundations make a tax-advantaged gift to a foreign NGO that is not designated as a U.S. 501(c)(3)? And how can donors be assured that their donation is used appropriately? The IRS provides U.S. grantmakers with two different options: 1. Conducting...
What Is Expenditure Responsibility?
How can U.S. foundations make a tax-advantaged gift to a foreign NGO that is not designated as exempt under Section 501(c)(3) of the Internal Revenue Code? And, how can donors be assured that their donation is used appropriately? The IRS provides U.S. grantmakers with...
Passing the Public Support Test: Challenges of Equivalency Determination
Equivalency determination (ED) is the process by which a U.S. grantmaker makes a good faith determination that a foreign grantee is considered the equivalent of a U.S. public charity under IRS Sections 501(c)(3) and 509(a)(4) of the tax code. One of these requirements...