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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
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