Expert advice on international grantmaking and risk management

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Expert Advice on International Grantmaking and Risk Management from CAF America, the recognized expert on tax effective, risk managed international and domestic grant making. Understand IRS regulations, learn ways to protect your reputation and become more strategic with your philanthropy.

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<ul><li> 1. CAF America:International GivingPresented by Ted HartFrom CAFAmerica.org</li></ul> <p> 2. TED HART, ACFRECEO at Charities Aid Foundation of AmericaFounder of ePhilanthropy Foundationand Green NonprofitsRadio Host- Nonprofit Coach (tedhart.com)Author: Internet ManagementPeople to People FundraisingNonprofit Guide to Going GreenNonprofit Internet StrategiesMajor DonorsFundraising on the InternetIntroduction 3. USA Donors Give to the World$15 Billion+ (USD) 4. Corporations Making A DifferenceMAKING A GLOBAL DIFFERENCEPrivate initiatives for the public good that addressthe most challenging social issues of our time andthat demand concerted action from a range ofactors around the world.Source: http://philanthropynews.alliancemagazine.org/2011/08/04/defining-%E2%80%98global-philanthropy%E2%80%99/ 5. Corporate Giving 65% of Fortune 500 companiesoffer matching gift programs.22 Double the Donation's Review of Matching Gift Programs 6. Corporate Giving 71% of companies gave to internationalend-recipients.22 CECP | GIVING IN NUMBERS: 2013 EDITION 7. Corporate Giving 71% of companies gave to internationalend-recipients.2 Corporate giving officers identifiedbusiness strategy and employeefootprint as the strongest drivers for theexpansion of international giving. 22 CECP | GIVING IN NUMBERS: 2013 EDITION 8. Making The Right MoveCAF America is the leadinginternational intermediary for: Tax effective Giving IRS Government Compliance Risk Mitigation Protecting CorporateReputation 9. Charities Aid Foundation ofAmerica (CAF America), a U.S.based 501(c)(3) nonprofitfounded in 1992.Headquartered in AlexandriaVA (Washington DC). CAF America can expeditegrants to over 181,000charities inover 83countries.The Basics 10. If done incorrectly, there can beIRS fees and penalties; If done incorrectly, possible loss ofIRS tax deduction; Possible theft of funds; Possible damage to reputation.Risks OfInternational Philanthropy 11. CAF AmericaSupport issues youremployees care about most:CAF America isissue agnostic" donorssupport the causes mostimportant to them, and weensure that funds are grantedsafely, securely and in fullaccord with IRS requirementsfor tax receipting. 12. Industry Leading Due DiligenceCertifies our vetted charities meet the higheststandards of our proprietary due diligenceprocess: 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 membersagainst 450 + global databases. Three-tier CAFAmerica reviewCAF Americas100-stepindustryleading duediligenceprocessis a combination of bothExpenditure Responsibilityand EquivalencyDetermination. 13. Risk ManagementEliminate Risk: Givingthrough CAF Americaensures that you, yourfoundation, or company isprotected, and that yourgiving meets all requiredUS regulations.CAF America takes fullrisk of all internationalgrants it makes. 14. Wire TransfersCAF America wiretransfers all grants directlyto pre-vetted charities.Other intermediaries sendchecks, these get lost,become difficult toconsolidate, get stolen. 15. International ReachOFFICE LOCATIONS: CAF America IDIS (Brazil) CAF United Kingdom CAF Bulgaria CAF Russia CAF South East Asia CAF Southern Africa CAF India CAF Australia CAF CanadaAdvisor Groups Asia Pacific AfricaWorldwide CollaborationCAF Global Alliance spans six continents, manages over $4 billion in donor andnon-profit monies, and exists to encourage philanthropy worldwide. 16. Disaster GivingVetted disaster response: Throughour network of 2000+ eligiblecharities (the largest database offully vetted international charitiesin the country), CAF America isable to identify partners on theground in times of need, andensure that badly needed fundsreach the people who need themquickly. 17. Advisory ServicesPhilanthropic Advisory Services:We offer donors the very highestlevel of confidential advisoryservices to help increase theimpact of their philanthropic effort.High-net worth individuals,foundations and corporationsbenefit from the industry leadingadvice on how to give, where togive and how to insure the grantsupport exceeds the expectationsof the donor. 18. CAF America Seal of Approval 19. Being Successful Potential IRS tax deductions Broadening your philanthropicmission Expanded impact and changeon a global scale 20. ServicesTHE SMART APPROACHTO INTERNATIONAL GIVINGLIST OF SERVICESDonor Advised GiftsEquivalency Determination/Expenditure ResponsibilityMatching Gift ProgramsCorporate Advisory ServicesShared Value Advisory ServicesFriends FundsDonor Advised FundsEmployee Payroll Deduction 21. Ways to Give Internationally?Direct Gift = No Tax BenefitsGift yourself or through a DAF = Tax-deductible contributionThank you to Caplin &amp; Drysdale, Washington DC 22. Overview of the International Giving ProcessWe take on theadministrativeburden and risk.We guarantee allIRS Guidelines arefollowed.Our 100-point vettingprocess ensures safegrantmaking.We approve the charityand assume fiduciaryresponsibility.We Cover The DetailsCAF Americaprovides IRS tax receiptA client makes agrant suggestion toCAF America.We simplify a very complex process. 23. About CAF AmericaTHE SMART APPROACHTO INTERNATIONAL GIVINGLIST OF SERVICESDONOR ADVISED GIFTSEquivalency Determination/Expenditure ResponsibilityMatching Gift ProgramsCorporate Advisory ServicesShared Value Advisory ServicesFriends FundsDonor Advised FundsEmployee Payroll Deduction 24. Donor Advised Fund (DAF) Corporation, Foundation or Individual gives to a recognized public charity thatmanages 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. 25. Benefits of A DAF Donor can get a tax deduction now and give later Private foundations can make grants withoutexercising normal oversight Donor Advised Fund handles due diligence process 26. About CAF AmericaTHE SMART APPROACHTO INTERNATIONAL GIVINGLIST OF SERVICESDonor Advised GiftsEQUIVALENCY DETERMINATION/EXPENDITURE RESPONSIBILITYMatching Gift ProgramsCorporate Advisory ServicesShared Value Advisory ServicesFriends FundsDonor Advised FundsEmployee Payroll Deduction 27. Equivalency Determination (ED)As the leader in global giving, CAFAmerica is the first organization in the field totake advantage of these new proposed changes. Equivalency determination is the method by which a private foundation collects detailedinformation on a foreign charitable organization in order to determine whether or not it is theequivalent 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 charitydatabase 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 duediligence and grantmaking.2. ED Certificate Issuing: This option is for donors who want to do their owngrantmaking but want CAFAmerica to do the due diligence first. After the researchis completed, CAFAmerica can issue an ED certificate. 28. Expenditure ResponsibilityIRS Requirements and Penalty Pre-grant inquiry: reasonable assurance thatthe expenditure is charitable Grant agreement restricts use of funds tospecific charitable projects Financial &amp; narrative reports at least annually&amp; final cumulative report Reporting to IRS: Coming soon? 20% tax on amount of the grant if you get it wrongThank you to Caplin &amp; Drysdale, Washington DC 29. About CAF AmericaTHE SMART APPROACHTO INTERNATIONAL GIVINGLIST OF SERVICESDonor Advised GiftsEquivalency Determination/Expenditure ResponsibilityMATCHING GIFT PROGRAMSCorporate Advisory ServicesShared Value Advisory ServicesFriends FundsDonor Advised FundsEmployee Payroll Deduction 30. Matching Donor Advised Fund - MDAFMatched giving programs enable a company to support a large number ofcauses while at the same time strengthening its corporate image amongemployees and the broader public.Matching Donor Advised Funds (MDAFs) provide the flexibility to manage aprogram of any type or size. It simultaneously ensures that employees areempowered to invest in the philanthropic causes closest to them, with theconfidence of full support from their employer. Companies benefit fromthe program by demonstrating the importance of employee giving andvolunteering.MDAFs let corporations tax-effectively support the philanthropic goals oftheir employees, matching employee contributions and/or volunteer time. 31. Benefits of a MDAF Unlimited, tax-deductible contributions at any time Multiple suggestions to a single organization arecombined into a single grant to reduce costs Flexibility to make grants according to programguidelines Tailor funds to fit a Corporate CommunityInvolvement program in terms of weekly, monthly, orquarterly matches 32. Collaboration on a Global ScaleTHE SMART APPROACHTO INTERNATIONAL GIVINGLIST 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 33. Expanded Possibilities1.5 million+ =85,000+ =181,000+ =Number of Charities inUnited States DatabaseNumber of Charities inCanada DatabaseNumber of Charities inGlobal DatabaseThe worlds largest collection of charitiesavailable for employee matching gifts. 34. How it Works TRUiST will set up an MDAF with CAF America and handle allcommunication 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 andAU charity database. If a TRUiST client would like to proceed with a charity on one of CAFAmericas list there is no extra fee. If a TRUiST client would like to give toa charity not on the list, TRUiST will invoice them for the vetting fee andthen CAF America will invoice TRUiST. CAF America will have no directcommunication with the client. TRUiST has the right to add a buffer to the fees CAF America charges foran MDAF if they choose to. 35. Special PricingInternational Program$125 Flat Fee per grantIncludes full feed of 181,000+ approved charitiesOptional Fees:$500 per international charity with grant suggestion$750 Pre-vetting* Note: TRUiST pays annual $5000 program account fee 36. Expanded PossibilitiesYou can now give your employees the abilityto change the whole world. 37. Serving Corporations, Foundations, Families and IndividualsTed Hart, ACFREChief Executive Officertedhart@cafamerica.orgT: +1 (703) 549-8931 F: +1 (703) 549-8934CAF America1800 Diagonal Road, Suite 150Alexandria, VA 22314www.CAFAmerica.orgCONTACT US </p>