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.
As we approach Thanksgiving here in the U.S. (and Native American Heritage month), NGOsource's legal team would like to extend its heartfelt thanks and appreciation to the many grantmakers and NGOs that populate, support, and enrich our ED repository. It is entirely thanks to the expertise, drive, and diversity of our grantmakers and NGOs that we have grown to over 8,000 EDs in 239 countries.
As discussed in previous posts, some countries have unique considerations when it comes to evaluating an organization for equivalency determination (ED). India is one such country. Indian laws pertaining to certain legal entities and tax exemptions contain provisions that mirror charity requirements in the U.S.
Generally speaking, a nonprofit organization is an organization whose primary purpose is to achieve an objective other than the obtaining of profits. A "charitable" organization, however, is a narrower category. The term encompasses nonprofit organizations whose operations principally benefit the general public, usually with additional restrictions around application of assets, lobbying, political activity, and individual benefits to their members.
An earlier post about 501(c)(3) schools discussed the many requirements that must be satisfied in order for a school to be recognized as a charity under section 170(b)(1)(a)(ii) of the Internal Revenue Code (the Code). In this post, we specifically explore the requirement that schools not discriminate against students on the basis of race, particularly with respect to non-U.S. schools.
As discussed in a previous post, certain countries have legal entity types and tax exemption or charity requirements in their jurisdictions that contain helpful provisions with respect to equivalency determination (ED). One such country is Israel. In this post, we will explore Israeli nonprofit and tax exemption requirements that NGOsource often relies on for ED certifications.
This month it is our privilege to feature a guest post by Noah Degu, a distinguished Ethiopian professional with a multidisciplinary background currently at the United Nations Industrial Development Organization (UNIDO), a Regional Hub embracing five African countries.
Grantmaker members and NGOs may wonder why the name of an NGO on its Equivalency Determination (ED) Certificate often differs from the name that was initially submitted for review. The reason is that an ED is a legal opinion, which must reflect the exact legal name of the entity as evidenced on its legal formation or registration documents.
As discussed in previous posts, the Internal Revenue Service (IRS) requires that a public charity in the U.S. be organized and operated exclusively for charitable purposes. It may not be organized or operated for the benefit of private interests (private benefit), and no part of its net earnings may benefit private parties (private inurement).