Expert Advice on International Grantmaking and Risk Management from CAF America, the recognized expert on tax effective, risk managed international and domestic grant making. Understand IRS regulations, learn ways to protect your reputation and become more strategic with your philanthropy.
2. TED HART, ACFRE
CEO at Charities Aid Foundation of America
Founder of ePhilanthropy Foundation
and Green Nonprofits
Radio Host- Nonprofit Coach (tedhart.com)
Author: Internet Management
People to People Fundraising
Nonprofit Guide to Going Green
Nonprofit Internet Strategies
Major Donors
Fundraising on the Internet
Introduction
4. Corporations Making A Difference
MAKING A GLOBAL DIFFERENCE…
“Private initiatives for the public good that address
the most challenging social issues of our time and
that demand concerted action from a range of
actors around the world.”
Source: http://philanthropynews.alliancemagazine.org/2011/08/04/defining-%E2%80%98global-philanthropy%E2%80%99/
5. Corporate Giving
• 65% of Fortune 500 companies
offer matching gift programs.2
2 Double the Donation's Review of Matching Gift Programs
6. Corporate Giving
• 71% of companies gave to international
end-recipients.2
2 CECP | GIVING IN NUMBERS: 2013 EDITION
7. Corporate Giving
• 71% of companies gave to international
end-recipients.2
• Corporate giving officers identified
business strategy and employee
footprint as the strongest drivers for the
expansion of international giving. 2
2 CECP | GIVING IN NUMBERS: 2013 EDITION
8. Making The Right Move
CAF America is the leading
international intermediary for:
• Tax effective Giving
• IRS Government Compliance
• Risk Mitigation
• Protecting Corporate
Reputation
9. • Charities Aid Foundation of
America (CAF America), a U.S.
based 501(c)(3) nonprofit
founded in 1992.
Headquartered in Alexandria
VA (Washington DC).
• CAF America can expedite
grants to over 181,000
charities in
over 83
countries.
The Basics
10. • If done incorrectly, there can be
IRS fees and penalties;
• If done incorrectly, possible loss of
IRS tax deduction;
• Possible theft of funds;
• Possible damage to reputation.
Risks Of
International Philanthropy
11. CAF America
Support issues your
employees care about most:
CAF America is
“issue agnostic" – donors
support the causes most
important to them, and we
ensure that funds are granted
safely, securely and in full
accord with IRS requirements
for tax receipting.
12. Industry Leading Due Diligence
Certifies our vetted charities meet the highest
standards of our proprietary due diligence
process:
• Organization Identification and Contact
• Document Collection:
Grant Eligibility Application (GEA)
Financials
Governing Documents
Board and Executive Staff rosters
Proof of Charitable status
Country-specific relevant documentation
• Ongoing weekly watch list scanning
Scan the nonprofit, key staff and board members
against 450 + global databases.
• Three-tier CAFAmerica review
CAF America’s
100-step
industry
leading due
diligence
process
is a combination of both
Expenditure Responsibility
and Equivalency
Determination.
13. Risk Management
Eliminate Risk: Giving
through CAF America
ensures that you, your
foundation, or company is
protected, and that your
giving meets all required
US regulations.
CAF America takes full
risk of all international
grants it makes.
14. Wire Transfers
CAF America wire
transfers all grants directly
to pre-vetted charities.
Other intermediaries send
checks, these get lost,
become difficult to
consolidate, get stolen.
15. International Reach
OFFICE LOCATIONS:
• CAF America
• IDIS (Brazil)
• CAF United Kingdom
• CAF Bulgaria
• CAF Russia
• CAF South East Asia
• CAF Southern Africa
• CAF India
• CAF Australia
• CAF Canada
Advisor Groups
• Asia Pacific
• Africa
Worldwide Collaboration
CAF Global Alliance spans six continents, manages over $4 billion in donor and
non-profit monies, and exists to encourage philanthropy worldwide.
16. Disaster Giving
Vetted disaster response: Through
our network of 2000+ eligible
charities (the largest database of
fully vetted international charities
in the country), CAF America is
able to identify partners on the
ground in times of need, and
ensure that badly needed funds
reach the people who need them
quickly.
17. Advisory Services
Philanthropic Advisory Services:
We offer donors the very highest
level of confidential advisory
services to help increase the
impact of their philanthropic effort.
High-net worth individuals,
foundations and corporations
benefit from the industry leading
advice on how to give, where to
give and how to insure the grant
support exceeds the expectations
of the donor.
19. Being Successful
• Potential IRS tax deductions
• Broadening your philanthropic
mission
• Expanded impact and change
on a global scale
20. Services
THE SMART APPROACH
TO INTERNATIONAL GIVING
LIST OF SERVICES
Donor Advised Gifts
Equivalency Determination/
Expenditure Responsibility
Matching Gift Programs
Corporate Advisory Services
Shared Value Advisory Services
Friends Funds
Donor Advised Funds
Employee Payroll Deduction
21. Ways to Give Internationally?
Direct Gift = No Tax Benefits
Gift yourself or through a DAF = Tax-deductible contribution
Thank you to Caplin & Drysdale, Washington DC
22. Overview of the International Giving Process
We take on the
administrative
burden and risk.
We guarantee all
IRS Guidelines are
followed.
Our 100-point vetting
process ensures safe
grantmaking.
We approve the charity
and assume fiduciary
responsibility.
We Cover The Details
CAF America
provides IRS tax receipt
A client makes a
grant suggestion to
CAF America.
We simplify a very complex process.
23. About CAF America
THE SMART APPROACH
TO INTERNATIONAL GIVING
LIST OF SERVICES
DONOR ADVISED GIFTS
Equivalency Determination/
Expenditure Responsibility
Matching Gift Programs
Corporate Advisory Services
Shared Value Advisory Services
Friends Funds
Donor Advised Funds
Employee Payroll Deduction
24. Donor Advised Fund (DAF)
• Corporation, Foundation or Individual gives to a recognized public charity that
manages the Fund
• Those with tax obligations can receive immediate tax benefits for contribution
• The charity takes responsibility to ensure charitable use of funds.
• Donor may advise or suggest but cannot direct, instruct, control, etc.
25. Benefits of A DAF
• Donor can get a tax deduction now and give later
• Private foundations can make grants without
exercising normal oversight
• Donor Advised Fund handles due diligence process
26. About CAF America
THE SMART APPROACH
TO INTERNATIONAL GIVING
LIST OF SERVICES
Donor Advised Gifts
EQUIVALENCY DETERMINATION/
EXPENDITURE RESPONSIBILITY
Matching Gift Programs
Corporate Advisory Services
Shared Value Advisory Services
Friends Funds
Donor Advised Funds
Employee Payroll Deduction
27. Equivalency Determination (ED)
As the leader in global giving, CAFAmerica is the first organization in the field to
take advantage of these new proposed changes.
• Equivalency determination is the method by which a private foundation collects detailed
information on a foreign charitable organization in order to determine whether or not it is the
equivalent of a United States public charity described in Code section 501(c)(3).
• Our 20 years of experience vetting international charities and our already robust charity
database positions CAFAmerica as the source for Equivalency Determination.
• CAFAmerica does Equivalency Determination in two ways:
1. Internal Review: This option is for donors who want CAFAmerica to do both the due
diligence and grantmaking.
2. ED Certificate Issuing: This option is for donors who want to do their own
grantmaking but want CAFAmerica to do the due diligence first. After the research
is completed, CAFAmerica can issue an ED certificate.
28. Expenditure Responsibility
IRS Requirements and Penalty
• Pre-grant inquiry: “reasonable assurance” that
the expenditure is charitable
• Grant agreement restricts use of funds to
specific charitable projects
• Financial & narrative reports at least annually
& final cumulative report
• Reporting to IRS: Coming soon?
• 20% tax on amount of the grant if you get it wrong
Thank you to Caplin & Drysdale, Washington DC
29. About CAF America
THE SMART APPROACH
TO INTERNATIONAL GIVING
LIST OF SERVICES
Donor Advised Gifts
Equivalency Determination/
Expenditure Responsibility
MATCHING GIFT PROGRAMS
Corporate Advisory Services
Shared Value Advisory Services
Friends Funds
Donor Advised Funds
Employee Payroll Deduction
30. Matching Donor Advised Fund - MDAF
Matched giving programs enable a company to support a large number of
causes while at the same time strengthening its corporate image among
employees and the broader public.
Matching Donor Advised Funds (MDAFs) provide the flexibility to manage a
program of any type or size. It simultaneously ensures that employees are
empowered to invest in the philanthropic causes closest to them, with the
confidence of full support from their employer. Companies benefit from
the program by demonstrating the importance of employee giving and
volunteering.
MDAFs let corporations tax-effectively support the philanthropic goals of
their employees, matching employee contributions and/or volunteer time.
31. Benefits of a MDAF
• Unlimited, tax-deductible contributions at any time
• Multiple suggestions to a single organization are
combined into a single grant to reduce costs
• Flexibility to make grants according to program
guidelines
• Tailor funds to fit a Corporate Community
Involvement program in terms of weekly, monthly, or
quarterly matches
32. Collaboration on a Global Scale
THE SMART APPROACH
TO INTERNATIONAL GIVING
LIST OF SERVICES
Donor Advised Gifts
Equivalency Determination/
Expenditure Responsibility
Matching Gift Programs
Corporate Advisory Services
Shared Value Advisory Services
Friends Funds
Donor Advised Funds
EMPLOYEE PAYROLL DEDUCTION Thanks to our new partnership with TRUiST
33. Expanded Possibilities
1.5 million+ =
85,000+ =
181,000+ =
Number of Charities in
United States Database
Number of Charities in
Canada Database
Number of Charities in
Global Database
The world’s largest collection of charities
available for employee matching gifts.
34. How it Works
• TRUiST will set up an MDAF with CAF America and handle all
communication directly with the client.
• CAF America will supply a list of all of their eligible charities to TRUiST.
This includes charities they have already vetted as well as their UK and
AU charity database.
• If a TRUiST client would like to proceed with a charity on one of CAF
America’s list there is no extra fee. If a TRUiST client would like to give to
a charity not on the list, TRUiST will invoice them for the vetting fee and
then CAF America will invoice TRUiST. CAF America will have no direct
communication with the client.
• TRUiST has the right to add a buffer to the fees CAF America charges for
an MDAF if they choose to.
35. Special Pricing
International Program
$125 Flat Fee per grant
Includes full feed of 181,000+ approved charities
Optional Fees:
$500 per international charity with grant suggestion
$750 Pre-vetting
* Note: TRUiST pays annual $5000 program account fee