The legal team at NGOsource works hard to certify as many non-U.S. NGOs as possible in order to streamline and increase international giving. Our equivalency determination (ED) process has certified over 700 NGOs in 96 countries to date as equivalent to 501(c)(3) organizations in the United States, allowing them to receive funding from U.S. grantmakers. One of the primary requirements for most international NGOs seeking equivalency is that they satisfy one of two public support tests.
On May 15, 2015, a staff member at a rural development organization in India registered with TechSoup. NGOs around the world register every day to receive support from TechSoup's many technology-based services, but this registration was significant because the staff member was the millionth to sign up.
As our central ED repository grows, grantmakers have a greater chance of finding that the ED they want to request has already been certified by us. EDs are delivered within one business day for $250. This sharp reduction in cost makes it much easier for U.S.-based donors of all sizes to provide funding to NGOs around the world, in amounts large and small. This shared system allows all our grantmaker members to save thousands of dollars and precious hours of staff time. Get the numbers on the repository’s rapid growth and learn what that means for international philanthropy.
Kyle Reis spoke with Douglas Rutzen, president and CEO of the International Center for Not-for-Profit Law (ICNL) and author of “Aid Barriers and the Rise of Philanthropic Protectionism.” With governments in 50 countries since 2012 restricting their NGOs’ funding from “foreign” sources, organizational lifecycle, and civic freedoms (freedom of expression, peaceful assembly, and the like), this challenges the fundamental value and role of civil society and philanthropy. We must all come together to respond collectively. Read about the issue and what you can do.
The IRS and Treasury department issued final rules on equivalency determinations (EDs) on September 25, 2015. These regulations are a direct result of years of advocacy by the Council on Foundations, TechSoup Global, and leading foundations to reduce barriers to global grantmaking through an ED repository that allows for economies of scale and simplifies international giving — to make it more cost effective for foundations, donor advised funds (DAFs), and charities to give to non-U.S. NGOs.
Relief Efforts Respond to 7.0 Earthquake
Already one of the poorest, most struggling countries in the world, Haiti was struck by a 7.0 earthquake in January 2010. The devastation left 316,000 lives lost and 1.3 million people displaced, unemployed, and homeless. The natural disaster put the country in dire need of the relief aid and workers that responded.
An NGO that has been through the ED process with NGOsource once gains an advantage from already having an ED in our repository because multiple grantmakers can affordably request an ED from us for the same NGO using the current information in our repository. This saves time and expense for both the grantmaker and NGO, and avoids the duplication of efforts when multiple grantmakers need an ED for the same NGO.
When our general manager, Ken Tsunoda, was contacted recently by an executive at a leading foundation regarding our capabilities, both of them experienced the benefit of NGOsource’s growing repository of equivalency determinations (EDs).
The foundation was interested in joining NGOsource. But they needed an ED quickly. They asked if we could expedite the request and complete it in four weeks.