Why Work With the International Community Foundation?

The International Community Foundation is more than a mechanism for giving. The foundation works as a partner and strategic advisor for donors, helping to identify where donations can have the greatest impact, guiding donors through each complex step involved in international philanthropy. The International Community Foundation makes the process easy for donors, while implementing due diligence to ensure that grants are distributed effectively and have maximum impact, all the while staying in strict compliance with U.S. laws and regulations governing charitable giving internationally.

International Expertise
The International Community Foundation’s team consists of international development and nonprofit professionals who are leaders in the field. The foundation’s staff members are multilingual and have lived and traveled throughout the countries where the foundation is active. This experience translates into a staff that is able to utilize their unique cultural insight, sensitivity and first-hand knowledge to the benefit of donors, and the projects and programs they support. Where specific subject matter experience is not available in-house, the International Community Foundation has proven success in tapping its extensive network of expert academic advisors from top universities throughout the U.S. These advisors assist in finding practical solutions that included costal land conservation, urban planning, chronic disease management and improvement to literacy.

Extensive Due Diligence
The International Community Foundation's due diligence process ensures that potential grantees are properly constituted, programmatically effective, financially stable, and have effective organizational leadership. The International Community Foundation also ensures that projects and programs are well thought through and will have measurable outcomes and deliverables. Throughout the life of the grant, the foundation continues its due diligence with follow-up phone interviews, e-mail correspondence and site visits. The International Community Foundation takes very seriously its responsibility to ensure that donor’s wishes are carried out in accordance with the law as well as adhering to "best practices" in international grantmaking. To further ensure a donor’s goals are met, the foundation has the following steps in place once staff has vetted a grant for potential funding:

• All grant distributions are first approved by the International Community Foundation’s Board of Governors to ensure oversight at the highest level.
• All financial and grant making procedures are transparent. All grants are posted on the International Community Foundation’s Web site and the foundation participates in a yearly independent audit.
• Donors are encouraged to ask questions and make comments.

Tax Deductibility
The International Community Foundation is a fully tax exempt 501(c)(3) public charity in the U.S. with its core mission focused on international grantmaking. Because of the due diligence undertaken by the International Community Foundation for all grants made to charities abroad, donor gifts enjoy the same tax benefits as gifts made to U.S. charities. Additionally, the International Community Foundation possesses a thorough understanding of U.S. laws regarding international charitable giving by individual and corporate donors and constantly monitors new IRS and U.S. Treasury guidelines regarding international giving to ensure that donors receive all available tax benefits.

The Complexities of International Giving
There are many complex and challenging U.S. government regulations surrounding international giving. The International Community Foundation ensures that each and every charitable gift made on behalf of donors is in full compliance with the law. The foundation works diligently to promote full compliance with:

• The Internal Revenue Code (IRC) —
  The IRC allows the giving of international grants under the condition that the foundation either certify foreign charities as 501(c)(3) equivalent organizations or the foundation employs a process called “expenditure responsibility,” which requires a pre-grant inquiry, grant agreement, separate accounting for charitable funds, and financial tracking and reporting.
• Pension Protection Act of 2006—
  Classifies permissible international giving through donor advised funds under certain conditions.
• USA Patriot Act of 2001 (reauthorized in 2005) --
  This law increases, among other things, existing criminal penalties for knowingly or intentionally providing material support or resources for terrorism through international grantmaking.
• Executive Order 13224—
  This order prohibits transactions with any charitable organization deemed by the Executive Branch and other U.S. agencies to be associated with terrorism. This executive order freezes all assets controlled by or in the possession of any charity or other entity that supports terrorists. To ensure full compliance with the law, the International Community Foundation regularly checks the names of nonprofit staff and directors against lists of prohibited persons.
• U.S. Department of the Treasury: Anti-Terrorist Financing Guidelines—
  These “Voluntary Best Practices for U.S.-Based Charities” provide guidance regarding compliance with the USA Patriot Act and Executive Order 13224. The guidelines describe how international funders should make grants and transfer funds to non-U.S. organizations. The International Community Foundation procedures, from approving charities through grant administration, follow these best practices recommended by the U.S. Department of the Treasury.

Cost Effectiveness, Economies of Scale
Because the International Community Foundation has established economies of scale in the communities where it is active, the foundation is able to keep administrative costs comparatively low and maximize the percentage of a donor’s gift that directly funds the donor's cause or project.

Transparency and High Ethical Standards
As a registered public charity in good standing, the International Community Foundation adheres to best practices in charitable gifting, promoting transparency in its operations with full financial disclosures.

Donor Privacy
The International Community Foundation has a strict donor privacy policy protecting the information of our donors from unauthorized persons. Additionally, all staff, volunteers and board members sign confidentially agreements to protect donor interests. For a variety of reasons, some donors choose to remain anonymous and their privacy is respected.

Peace of Mind
Working with the International Community Foundation, as opposed to establishing a private foundation, affords donors the ability to focus on one’s passion, leaving the International Community Foundation to handle the day-to-day administrative and legal complexities associated with managing an international grant. This approach relieves donors of the administrative burdens and allows donors to not lose sight of their philanthropic passions and interests.