Cross-Border Giving: A Legal and Practical Guide

Cross-border donors often face daunting challenges. Complex US and international regulatory frameworks apply to cross-border giving, and a lack of understanding of these rules and regulations can result in excessive exposure of donors to risks impacting both their bank accounts and their reputation. In this age of increased prevalence of money laundering, terrorist financing, and an ongoing global trend of tightening regulation of the nonprofit sector, compliance in cross-border grantmaking has never been more difficult nor more important to achieve.

Even with the noblest of intentions and goals, if donors do not ensure that their funding is going to well vetted, trustworthy recipients they could be doing more harm than good. As you will learn from the authors in this book, many issues must be addressed when US donors, be they foundations, individuals, corporations, or anyone else involved in philanthropy, choose to make cross-border donations. These span a wide range of regulatory compliance issues, such as adhering to laws blocking the use of charitable funds to finance organized crime and terrorism, preventing the cooptation of the grantmaking process for fraud or personal gain, and ensuring full compliance with applicable laws in the foreign countries that host grant beneficiaries.

 

Contents

Introduction
Understanding the 3Rs of Successful Cross-Border Giving, Ted Hart

Chapter One
The Thriving Ecosystem of International Philanthropy, Adam Pickering

Chapter Two
Unite and Conquer! Giving in the Context of the Sustainable Development Goals, Heather Grady

Chapter Three
Ethics in International Grantmaking, Patricia Rosenfield

Chapter Four
Mechanisms for International Grantmaking, Beth Kingsley

Chapter Five
Tools for Direct International Grantmaking: Expenditure Responsibility, John Bennett and David Shevlin

Chapter Six
Tools for Direct International Grantmaking: Equivalency Determination, David Shevlin and John Bennett

Chapter Seven
Vetting International Charities, Jessie Krafft

Chapter Eight
US Financial Transaction Laws and Their Impact on International Grantmaking, Kay Guinane and Nancy Herzog

Chapter Nine
Responsible Giving: The International Grantmakers’ Perspective, Jane Peebles

Chapter Ten
Monitoring and Impact Measurement, David Pritchard

Chapter Eleven
Preparing for an Audit, Victoria Bjorklund

Chapter Twelve—Part One
Donor Perspectives—High Net Worth Individuals and Families, Susan Winer and Betsy Brill

Chapter Twelve—Part Two
Donor Perspectives—Corporations as Donors, Deirdre White and Amanda McArthur

Appendix A
International Organizations Designated by Executive Order

Appendix B
Sample Affidavit for Equivalency Determination

Appendix C
Sample Grant Agreement

Appendix D
Sample Grantee Report Form

Appendix E
Timeline of Post 9/11 Anti-Terrorist Financing Laws and Evolution of Voluntary Guidelines

Appendix F
Anti-Terrorist Financing Legislation and Guidelines

Ted Hart, ACFRE, CAP ®, President and CEO, CAF America, brings over thirty years of experience in advising global philanthropy. As an internationally recognized speaker, Ted is an expert in both domestic and global philanthropic regulations and risk management. During his tenure as President and CEO, CAF America has witnessed exponential growth, significantly expanded its suite of services, and dramatically increased the number of charities funded around the world. Before joining CAF America, Ted served as President of an international consultancy firm, providing strategic solutions to major nonprofits and NGOs. He has coauthored six books published by John Wiley & Sons, including People to People Fundraising, Internet Management for Nonprofits, and Fundraising on the Internet. Ted played a critical role in the creation of the green nonprofits movement and was founder of the international ePhilanthropy Foundation. In addition to his Master in Public Administration (MPA) degree, Ted is a Chartered Advisor in Philanthropy (CAP), he holds the Advanced Certified Fundraising Executive (ACFRE) designation which is held globally by fewer than 120 people, and is certified in Anti-Money Laundering (AML/CFT) by the Society of Tax and Estate Professionals (STEP).

Kinga Ile, LL.M is a human rights lawyer with fifteen years of experience with multidisciplinary teams in the private and nonprofit sectors. Aiming to bridge the gap between these two sectors, she works with businesses and NGOs on forging partnerships and developing strategies that are sustainable, measurable and benefit both corporations and communities. At CAF America, she manages all strategic and tactical aspects of the thought leadership platform including the launch and development of the International Grantmaking Symposium. Kinga is passionate about using human rights principles to motivate the private sector in seeking to deliver social benefits. Her experience spans from assisting businesses with their expansion strategies into new markets, to representing clients in international arbitration proceedings. Within the nonprofit arena, in her role with the Open Society Foundations, Kinga worked with human rights organizations worldwide focusing on international justice and minority rights. Kinga is Adjunct Faculty of Regis University and Maastricht School of Management where she lectures on the intersection of business strategy and human rights. Kinga holds an LL.M. in European Union Law from University of Amsterdam and an LL.M. in International Human Rights from Central European University, Budapest.