As discussed in a previous post, a nonprofit organization that is organized and operated exclusively for charitable purposes may be deemed a public charity (and not a private foundation) under section 501(c)(3) of the Internal Revenue Code (IRC) in one of three principal ways.
A year ago we published an article describing the nondiscrimination requirements that apply to all non-U.S. schools that undergo Equivalency Determinations. Such requirements are intended to ensure that no charitable, tax-exempt school would treat its students inequitably by virtue of their race, ethnicity, or national origin.
In this latest installment of "ExpertEASE," Merrill Sovner, Barry Gaberman, and William Moody answer questions about pooled funds and their implications for international giving.
The Doctrine of Cy Pres (“Cy Pres” or “the doctrine” for short) is derived from French, meaning "as near as possible" (aussi pres que possible, in modern French). The doctrine, as it relates to charitable giving, is particularly applicable in trusts and estates law.
NGOsource will be featuring a new blog series called "ExpertEASE," intended to complement our existing LegalEASE blog. These periodic articles will feature the expertise of a member of the international grantmaking community to help shed light on issues of interest to our community. For this first issue, we've asked Crown Agents Bank to provide a background on what it means to be a "correspondent bank," as well as some of the key obstacles that charities face in the delivery of grants abroad.
Many of our NGOs and grantmaker members ask about the Form W-8. In this post we’ll explain the purpose of this form as well as the meaning of “withholding” for U.S. tax purposes. Generally, all non-U.S. residents and entities that receive payments from sources in the U.S. are subject to U.S. tax. This standard tax rate is set at 30 percent of income received. Income items that are subject to this tax include dividends on U.S. securities as well as grants or payments for services from U.S. entities, including businesses and foundations.
As part of the equivalency determination (ED) process, NGOsource requests an organization's formation date. Among other things, this helps us establish whether it is a new organization that requires a heightened level of analysis with respect to its anticipated public support.
As many of our readers are aware, the European Union (EU) General Data Protection Regulation (GDPR) went into effect on May 25, 2018. Although GDPR is an EU regulation, its impact is global. This is because GDPR protects the information of EU residents, no matter who is processing that information, or from where.
As we bring another year to a close at NGOsource, we invite private foundations and donor advised funds (“grantmakers”) to think about how to maximize equivalency determination (ED) validity periods. The ED validity period, which is dictated by U.S. tax law, indicates when a grantmaker can rely on the written advice provided in the ED. The validity period of an ED is based on an organization’s fiscal year.