How to be a global nonprofit : legal and practical guidance for international activities / Lisa Norton.

Format:

Book

Author/Creator:

Norton, Lisa, 1956-

Series:

Wiley nonprofit authority series.

Wiley nonprofit authority

Language:

English

Subjects (All):

Nonprofit organizations--Law and legislation--United States.

Nonprofit organizations.

Nonprofit organizations--Law and legislation.

Physical Description:

1 online resource (320 p.)

Edition:

1st ed.

Place of Publication:

Hoboken, N.J. : John Wiley & Sons, c2012.

Language Note:

English

Summary:

This title presents solid guidance for the complex legal issues faced by international nonprofits, and includes ten case studies to provide insights into the ways real organizations have dealt with various legal and practical issues.

Solid guidance for the complex legal issues faced by international nonprofits When a nonprofit operates across borders, whether by making grants or directly operating programs, the interaction among legal requirements of two or more countries quickly becomes highly complex. How To Be A Global Nonprofit fills a need for legal and practical guidance for nonprofit organizations with international activities, and includes ten case studies to provide insights into the ways real organizations have dealt with various legal and practical issues. Along the way, it skillfully explores alternatives for advancing a nonprofit's mission across borders, while also looking at the legal and practical issues nonprofits encounter as they work internationally. Includes ten case studies based on interviews with large and small international nonprofits Offers a realistic sense of the complexity of legal and practical issues global nonprofits face Features a companion website with a variety of online tools and materials related to key concepts discussed in this book Not long ago international philanthropy was the province of large organizations like the Red Cross, UNICEF, and Save the Children. This has radically changed. How to Be a Global Nonprofit thoroughly explores the legal and practical issues nonprofits encounter as they work internationally and the resources required to deal with them. Praise for How to Be a Global Nonprofit "Lisa Norton has written a book that is straightforward, authoritative, and extremely practical. It is a must-read for any nonprofit contemplating an international expansion. I only wish this resource had been available when TEI established its first international chapter more than a decade ago." -Mary L. Fahey, former general counsel, Tax Executives Institute "We are living in an exciting time when the movement to fight global poverty is growing rapidly. How to Be a Global Nonprofit is a must-read for nonprofit organizations that want to launch international activities as well as those already operating internationally. The book provides clear and practical guidance, and reveals interesting insights through case studies of large and small organizations." -Bookda Gheisar, Executive Director, Global Washington "'Keep It As Simple As Possible,' reads one heading in Lisa Norton's How to Be a Global Nonprofit. Norton heeds her own advice. She provides philanthropists and nonprofit executives with a clear road map through the issues that must be addressed before entering the international arena." -Jack B. Siegel, consultant and author of A Desktop Guide for Nonprofit Directors, Officers, and Advisors: Avoiding Trouble While Doing Good "Constantly expanding sources of global news and information and the explosion of social media mean we are acutely aware of issues and crises outside the United States that seem to demand our philanthropic dollars and attention. For some, the most logical and effective response will be the planning and establishment of a new nonprofit organization, focused on the issues and able to work across borders. For those considering this, nonprofit legal expert Lisa Norton's How to Be a Global Nonprofit is an invaluable guide, explaining in clear, plain English, the myriad legal considerations and the pros and cons entailed in operating a nonprofit organization that engages in cross-border activity." -Ruth Jones, CEO, Social Venture Partners International "This simply explained sophisticated guide provides essential information for any nonprofit organization contemplating foreign activities." -Cherie Evans, Partner, Evans & Rosen LLP

Contents:

How to Be a Global Nonprofit: Legal and Practical Guidance for International Activities

Contents

List of Case Studies

Preface

How to Use This Book

Disclaimer

Internal Revenue Service Circular 230 Disclosure

Acknowledgments

Chapter 1: So You Want to Be a Global Nonprofit?

1.1 What Do You Really Want to Accomplish?

1.2 Spectrum of International Activities

1.3 Overview of International Grantmaking

Funding through a U.S.-Based Intermediary

Funding through a Foreign Intermediary

Directly Funding Foreign Programs

1.4 Directly Operating Foreign Programs

1.5 Global Fundraising

1.6 Legal Considerations: A Basic Framework

Obtaining and Maintaining U.S. Tax-Exempt Status

Foreign Legal and Practical Concerns

Affording Tax Benefits for U.S. or Foreign Donors

Complying with U.S. Laws that Regulate International Activities

1.7 The Importance of Vigilance

Choose Board Members Carefully

Follow the Money

1.8 So, You Still Want to Be a Global Nonprofit?

Chapter 2: International Grantmaking by Public Charities

2.1 Public Charity or Private Foundation: Why Does It Matter?

2.2 What Is a Public Charity?

Broad Public Support Test

Mission-Related Revenue Test

Automatic Public Charity Status

Supporting Organization

2.3 Basic Rules for Foreign Grantmaking

Establish Objective Selection Criteria

Know Your Grantee

Do Not Act as a Pass-Through for Contributions to Foreign Organizations

Use Written Grant Agreements

Monitor Your Grants

The Critical Role of the Board of Directors

2.4 American Friends of Organizations

2.5 Special Rules for Donor-Advised Funds

2.6 Other U.S. Intermediaries

2.7 Review and Further Considerations

Chapter 3: International Grantmaking by Private Foundations.

3.1 What Is a Private Foundation?

Private Non-Operating Foundations

Private Operating Foundations

3.2 Should a Private Foundation Make Cross-Border Grants?

3.3 Permitted Grants and Disbursements

Grants to 501(c)(3) Public Charities

Grants to Organizations Other Than Public Charities

Grants to Governments and Government Units

Scholarships and Other Grants and Gifts to Individuals

Program-Related Investments

3.4 International Grantmaking: Special Requirements for Private Foundations

Grants to Foreign Organizations: Equivalency Determination or Expenditure Responsibility

Grants to Foreign Intermediaries

Grants to Foreign Governments or Government Units

Grants to International Organizations Designated by Executive Order

Cross-Border Program-Related Investments

Anti-Terrorism Compliance

3.5 U.S. Withholding Tax on Disbursements of Grant Funds

3.6 Review and Further Considerations

Chapter 4: Going Deeper: Operating a Foreign Program

4.1 Are You Determined to Move Beyond Grantmaking?

4.2 Is Anybody Else Doing It?

Three Audacious Founders

How Can You Find Out Whether Anyone Is Out There Doing What You Want to Do?

4.3 Are You Sure You Will Be Allowed to Do What You Want to Do?

4.4 Alternative Models for Operating a Foreign Program

4.5 Establishing a Foreign Office

Foreign Office or Separate Legal Entity?

Branches versus Separate Legal Entities: Wikipedia

4.6 Do You Need to Do It Alone?

4.7 Staffing a Foreign Office: Consequences to the Organization

How Do Foreign Activities Affect Your U.S. Tax-Exempt Status?

4.8 Will Your U.S. Organization Be Taxed by a Foreign Country?

Value Added Tax (VAT)

Income Tax

What If There Is No Income Tax Treaty?

What If an Income Tax Treaty Exists?

What If Your Organization Will, or Might Be, Taxed in a Foreign Country?.

4.9 What Happens If Your Organization Conducts Business Activities in a Foreign Country?

What Is Unrelated Business Taxable Income (UBTI)?

Foreign Consequences of Earning Business Income

Consider Forming a For-Profit Subsidiary

4.10 Foreign Reporting Requirements

4.11 U.S. Reporting Requirements

4.12 Review and Further Considerations

Chapter 5: Forming and Operating through a Foreign Legal Entity

5.1 Establishing a Foreign Legal Entity

What Is a Legal Entity?

Why Form a Separate Legal Entity?

Converting a Foreign Branch into a Legal Entity

5.2 How Hard Will It Be to Form a Foreign Legal Entity?

5.3 What Kind of Legal Entity Should You Create, and Why Should You Care?

Isn't This Something Just the Lawyers Should Care About?

Nonprofit Corporation

Charitable Trust

Unincorporated Association

Some Common Forms of Foreign Nonprofit Organizations

Form of Legal Entity: Factors to Consider

5.4 Do You Want a Model of Control or Collaboration, or Both?

5.5 Control

Control through Membership

Control through Appointment of Directors

Control through Contractual Arrangements

Control through Licensing of Name, Logo, and Other Intellectual Property

A Word of Caution for Private Foundations

5.6 Collaboration

5.7 Two Case Studies: One Very Large and One Very Small Organization

5.8 Headquarters Offices: Centralized versus Decentralized Services

How Much Centralization Do You Want?

How Will the Headquarters Office Be Funded?

Always Have a Written Service Agreement

5.9 Shared Employees

5.10 Will a Foreign Legal Entity Be Tax-Exempt in Its Local Country?

Do Not Assume a Foreign Legal Entity Will Be Tax-Exempt

Earned Revenue

5.11 Will a Foreign Legal Entity Be Taxed in the United States?

What Kinds of Activities Trigger U.S. Tax for a Foreign Legal Entity?.

How Can a Foreign Legal Entity Claim Exemption from U.S. Tax?

5.12 The Importance of Keeping U.S. and Foreign Activities Separate

5.13 Consider the Burdens of Maintaining Two or More Separate Legal Entities

5.14 For-Profit Subsidiaries

5.15 Soliciting Funds from U.S. Donors

5.16 Review and Further Considerations

Chapter 6: Staffing Foreign Operations: Employees and Volunteers

6.1 Staffing Foreign Operations: Will You Send U.S. Staff or Hire Locally?

6.2 Sending People Overseas: Initial Considerations

Do Foreign Labor Laws Apply?

Minimize Culture Shock (or Worse)

6.3 If You Send U.S. Employees to Work in a Foreign Country, Will They Be Taxed There?

Does a Tax Treaty Apply?

Special Treatment of Teachers, Researchers, and Students

Claiming Beneficial Treatment Under a Treaty

6.4 If Your Employees Are Taxed in a Foreign Country, Will They Still Be Taxed in the United States?

U.S. Foreign-Earned Income Exclusion

Foreign Housing Exclusion or Deduction

U.S. Foreign Tax Credit or Deduction

Social Security Taxes

6.5 Making Payments to People Working in Foreign Countries

6.6 Hiring Locally

Hire the Right People the First Time

Research Local Compensation and Benefits

Always Have Written Employment Contracts

6.7 Hiring or Sending Non-U.S. Citizens/Residents to Work in the United States

U.S. Visa Requirements

U.S. Tax Considerations for Nonresident Aliens Working in the United States

6.8 Special Considerations for Volunteers

Volunteers Traveling: The Cultural Safari

Sending Volunteers for Extended Periods

Tapping into Foreign Volunteers

6.9 Review and Further Considerations

Chapter 7: Raising Funds Globally

7.1 Why Do You Want to Raise Funds in a Foreign Country?

7.2 Will You Be Permitted to Solicit Contributions in a Foreign Country?.

7.3 Does the Foreign Country Provide Tax Benefits, and Are They Important to Your Donors?

7.4 Is a Separate Legal Entity Required?

Consider Working with an Existing Fundraising Organization

Should You Create Your Own Fundraising Entity?

7.5 Tax Benefits for Cross-Border Philanthropy

Restrictions on Using Funds to Operate Foreign Programs

Restrictions on Using Funds to Support Foreign Organizations

7.6 Exceptions to the Separate Legal Entity Requirement for Fundraising in Foreign Countries

Special U.S. Treaty Provisions

Intra-European Philanthropy

Additional Exceptions

7.7 Structuring Relationships among Fundraising and Operating Entities

7.8 Keep It as Simple as Possible

7.9 Review and Further Considerations

Chapter 8: Additional U.S. Laws and Reporting Requirements

8.1 Anti-Terrorism Compliance

Intentional Support of Terrorism

Inadvertent Support of Terrorism

Risk-Based Approach to Developing Policies and Procedures

Guidance for Developing Policies and Procedures

Providing Humanitarian Aid in Sanctioned Countries

USAID Funding Conditions

8.2 Export Controls

Restrictions on Exporting Certain Goods and Technologies

Restrictions on Military Equipment and Technical Data

8.3 Anti-Boycott Rules

Commerce Department Rules

U.S. Tax Rules

8.4 Anti-Bribery Rules

Who Is Subject to the FCPA?

What Kinds of Payments Are Prohibited?

Payments Made by Agents and Others: Do Not Turn a Blind Eye

Exception: Payments to Facilitate Routine Governmental Actions

When Can You Pay for Government Officials' Travel Expenses?

Payments Permitted under a Foreign Country's Law

Charitable Contributions Can Violate FCPA!

All International Organizations Should Have a Compliance Program

8.5 Lobbying and Political Activity.

Overview of Lobbying Restrictions for 501(c)(3) Organizations.

Notes:

Includes index.

Description based on print version record and CIP data provided by publisher.

ISBN:

9781118571033

1118571037

9781299106116

1299106110

9781118534670

1118534670

9781118534724

1118534727

OCLC:

810773480