CAF America:International Giving Presented by Ted Hart
From CAFAmerica.org
TED HART, ACFRECEO 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
USA Donors Give to the World
$15 Billion+ (USD)
Corporations Making A 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.”
MAKING A GLOBAL DIFFERENCE…
Source: http://philanthropynews.alliancemagazine.org/2011/08/04/defining-%E2%80%98global-philanthropy%E2%80%99/
Corporate Giving
• 65% of Fortune 500 companies offer matching gift programs.2
2 Double the Donation's Review of Matching Gift Programs
Corporate Giving
• 71% of companies gave to international end-recipients.2
2 CECP | GIVING IN NUMBERS: 2013 EDITION
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
Making The Right Move
CAF America is the leading international intermediary for:
• Tax effective Giving• IRS Government Compliance• Risk Mitigation• Protecting Corporate
Reputation
• 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
• 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
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.
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.
Industry Leading Due Diligence
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.
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.
International Reach
CAF Global Alliance spans six continents, manages over $4 billion in donor and non-profit monies, and exists to encourage philanthropy worldwide.
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
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.
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.
CAF America Seal of Approval
• Potential IRS tax deductions
• Broadening your philanthropic mission
• Expanded impact and change
on a global scale
Being Successful
Services
THE SMART APPROACH TO INTERNATIONAL GIVING
LIST OF SERVICESDonor Advised GiftsEquivalency Determination/Expenditure ResponsibilityMatching Gift ProgramsCorporate Advisory ServicesShared Value Advisory ServicesFriends FundsDonor Advised FundsEmployee Payroll Deduction
Direct Gift = No Tax Benefits
Gift yourself or through a DAF = Tax-deductible contribution
Thank you to Caplin & Drysdale, Washington DC
Ways to Give Internationally?
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.
CAF America provides IRS tax receipt
We Cover The Details
We simplify a very complex process.
A client makes a grant suggestion to CAF America.
Overview of the International Giving Process
About CAF America
THE SMART APPROACH TO INTERNATIONAL GIVING
LIST OF SERVICESDONOR ADVISED GIFTSEquivalency Determination/Expenditure ResponsibilityMatching Gift ProgramsCorporate Advisory ServicesShared Value Advisory ServicesFriends FundsDonor Advised FundsEmployee Payroll Deduction
• 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.
Donor Advised Fund (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
Benefits of A DAF
About CAF America
THE SMART APPROACH TO INTERNATIONAL GIVING
LIST OF SERVICESDonor Advised GiftsEQUIVALENCY DETERMINATION/EXPENDITURE RESPONSIBILITYMatching Gift ProgramsCorporate Advisory ServicesShared Value Advisory ServicesFriends FundsDonor Advised FundsEmployee Payroll Deduction
• 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.
As the leader in global giving, CAFAmerica is the first organization in the field to take advantage of these new proposed changes.
Equivalency Determination (ED)
• 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
Expenditure Responsibility
IRS Requirements and Penalty
Thank you to Caplin & Drysdale, Washington DC
About CAF America
THE SMART APPROACH TO INTERNATIONAL GIVING
LIST OF SERVICESDonor Advised GiftsEquivalency Determination/Expenditure ResponsibilityMATCHING GIFT PROGRAMSCorporate Advisory ServicesShared Value Advisory ServicesFriends FundsDonor Advised FundsEmployee Payroll Deduction
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.
Matching Donor Advised Fund - 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
Benefits of a MDAF
Collaboration on a Global Scale
THE SMART APPROACH TO INTERNATIONAL GIVING
LIST OF SERVICESDonor Advised GiftsEquivalency Determination/Expenditure ResponsibilityMatching Gift ProgramsCorporate Advisory ServicesShared Value Advisory ServicesFriends FundsDonor Advised FundsEMPLOYEE PAYROLL DEDUCTION Thanks to our new partnership with TRUiST
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
Expanded Possibilities
The world’s largest collection of charities available for employee matching gifts.
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.
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
Expanded Possibilities
You can now give your employees the ability to change the whole world.
CAF America1800 Diagonal Road, Suite 150Alexandria, VA 22314
www.CAFAmerica.org
Ted Hart, ACFREChief Executive Officer
T: +1 (703) 549-8931 • F: +1 (703) 549-8934
Serving Corporations, Foundations, Families and Individuals
CONTACT US
