A Practical Guide to International Philanthropy »

This book is a practical guide addressing the issues faced by philanthropists seeking to engage in international charitable activities and offers alternative approaches to traditional U.S.-based foundations. A significant portion of the regulatory burdens facing U.S. private foundations derives from tax benefits available to donors under U.S. law. A charitable organization must initially qualify and then be maintained under a complex regulatory regime. If some or all of these tax benefits are either unavailable or not needed, or if the tax advantages are outweighed by the burdens of regulatory compliance, foundations can be established in foreign jurisdictions. Charitable activities can then be operated flexibly and privately outside the constraints of the U.S. regulatory regime. For existing private foundations, this book suggests strategies designed to hedge against ever-increasing and intrusive regulation.

1 Introduction 1

2 Fundamental concepts relating to charitable organizations 15

3 U.S. legal framework governing charitable organizations 22

4 U.S. legal constraints 40

5 Constraints on cross-border philanthropy 57

6 Why create a foreign charity? 67

7 Picking a jurisdiction 73

8 Establishing a foreign charitable foundation 81

9 Representative structures 94

Glossary of terms 101

Appendices 105

Index 359