501c3 and issues related -mars 2015€¦ · vous saurez tout sur le 501(c)(3) témoignagne proposé...

Mars 2015

501(c)(3) and Issues Related

Irène Serot Almeras Mission des relations avec la Société Civile

Ambassade de France aux Etats-Unis Service de Coopération et d’Action Culturelle

http://fr.ambafrance-us.org/spip.php?article686

Mission des relations avec la Société Civile et les Partenariats Ambassade de France aux Etats-Unis – Service de Coopération et d’Action Culturelle

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I- Création d’un 501(c)(3)

VOUS SAUREZ TOUT SUR LE 501(C)(3)

TEMOIGNAGES

II- Collecter sans le 501(c)(3) : l’indispensable Equivalency Determination NGO SOURCE

GLOBALGIVING

PHILANTHROPIC INITIATIVE

III - Collecter des Fonds aux US en passant par des intermédiaires

LES « FRIENDS OF »

LES EXPERTS EN RECHERCHE DE FONDS

LES DONOR ADVISED FUNDS

IV – Témoignages de fondations et de collectifs de fondations américaines EXPONENT PHILANTHROPY

FONDATION BILL ET MELINDA GATES

V- Annexes

EXTRAIT DE « THE RULES TO GIVE BY, A GLOBAL PHILANTHROPY LEGAL ENVIRONMENT INDEX »

EDITE PAR NEXUS / MCDERMOTT WILL&EMERY / CAF


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Au fil des mois, nombreuses ont été les questions posées par plusieurs acteurs français souhaitant s’installer aux Etats Unis, sur les solutions, les problèmes posés par chaque solution envisagée…

Au fil des mois, nombreuses ont été les rencontres que nous avons pu faire, au travers des réseaux auxquels la mission des relations avec la société civile a adhéré, mais aussi au cours des réunions thématiques/conférences particulièrement nombreuses aux Etats Unis auxquels nous avons assisté, à New York, San Francisco, Los Angeles, Washington et Seattle. C’est ainsi que l’idée de ce rapport est né, petit à petit, au fil des mois. Contrairement à ce que nous avons pu vous proposer précédemment, nous avons choisi une méthode totalement participative. Nous n’avons écrit directement aucun article et toute contribution est venue d’acteurs ayant bien voulu participer à titre gracieux à cet exercice, dont la finalité est de donner le plus d’informations possibles sur la/les méthodes à suivre lorsqu’une ONG veut s’implanter aux Etats-Unis, sur les structures qui se sont établies aux Etats-Unis et qui proposent des services différents pour faciliter cette implantation, et enfin, sur les fondations américaines qui agissent à l’international et sont donc susceptibles de pouvoir appuyer une ONG non américaine et/ou assimilée. Sur ce dernier point, je souhaite mentionner Jennifer Astone, la directrice de Swift Foundation qui a participé à ce rapport en tant que directrice de la Swift, membre de Exponent Philanthropy et en tant qu’expert. Une mention spéciale également à Paul Margie, qui malgré ses nombreuses occupations professionnelles et ses engagements à titre bénévole, a mobilisé sa collègue, Traci Biswese, afin de nous concocter un exposé complet spécifiquement tournés sur les volets juridiques et complexes de la création d’une 501(c)3. Car c’est un peu finalement le message délivré au fil des pages, s’implanter aux Etats-Unis pour une association n’est pas simple, les solutions sont nombreuses, mais aucune n’est simple, ni … gratuite. Merci également à Odile Prévot, qui a été parmi les premières à répondre présente, et qui a bien voulu prodiguer des conseils à d’autres structures françaises ayant entamé une réflexion sur une éventuelle implantation aux US. Delphine Halgand, malgré un agenda particulièrement chargé, compte tenu des évènements récents en France, a participé également, afin de restituer l’aventure de la création de Reporters Without Borders USA, et les enseignements qu’elle peut en tirer aujourd’hui, après plusieurs années d’existence aux Etats-Unis. Nous avons reçu quelques jours avant la sortie du rapport, Nicolas Hazard, du groupe SOS, très connu en France (Economie Sociale et Solidaire). Il s’est lancé il y a peu, mais avec visiblement déjà succès, dans la création de Calso, qui souhaite adapter aux Etats-Unis ce modèle de l’entrepreunariat français. Ni une ni deux, en deux jours, je recevais le témoignage de Nicolas. Merci et quelle rapidité ! Profitant des réseaux auxquels la Mission des Relations avec la Société Civile a pu adhérer au fil des années, nous avons posté un message sur le forum de discussion réservé aux membres de « Grantmakers for Effective Organizations ». Certaines fondations ont répondu, dont la Fondation Bill et Melinda Gates, au travers de Shelly Sundberg. Très intéressant d’avoir le point de vue de cette impressionnante fondation par sa taille et les


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fonds mis à disposition. Diversité du paysage américain, après avoir évoqué la plus grosse fondation américaine, nous tenons à rendre hommage à Andy Carroll qui a fait ici, au titre de Exponent Philanthropy (collectif de fondations ayant peu ou pas de staff) un travail formidable, fruit de sa grande expérience et des informations qu’il a recueilli auprès de certains de leurs membres. En revenant aux petites structures, nous souhaitons remercier très chaleureusement également Caroline Faucher-Winter qui nous emmène en Thaïlande, avec l’histoire de l’association Kids Home, après le Cameroun représenté par la Serge Betsen Academy. C’est ainsi que notre rapport est vraiment diverse, puisque l’on pourra lire également l’expérience relaté par Hugues Chenet, qui est en cours de processus, ou celle exposée par Laurent Mellier, qui bénéficie aux Etats Unis du réseau des anciens de Polytechnique, base solide pour une implantation d’une structure « les Amis de ». Les Amis de la Fondation de France, représentée par Francis Charhon nous narre leurs méthodes et critères, que détaille aussi Jean-Paul Warmoes pour An ‘American Friends Fund’ at KBFUS. Espace intermédiaire en quelque sorte avant le 501(c)(3), des structures comme GlobalGiving, qu’évoque pour nous Cathy Maher, ou la plus récente NGO Source propose le premier sésame qu’est le Equivalency Determination. Ken Tsunoda, nous explique en quoi cela consiste et comment NGO Source peut efficacement aider les associations qui souhaitent en bénéficier. Grâce au témoignage proposé par Maggi Alexander, du Center for Global Philanthropy de la Philanthropic Initiative, nous abordons également le champ immense des conseils aux philanthropes, très nombreux aux Etats-Unis. Maggi nous détaille le département spécifique dédié aux fondations américaines agissant à l’international qu’ils ont ouvert en 2010. Non pas entre la poire et le fromage, mais plutôt entre le donor advised fund et les amis de, on trouve Faircom, Corinne Servily nous expose leurs méthodes de travail et ce qu’ils proposent concrètement aux associations et/ou fondations qui font appel à leurs services. En parlant de Donor Advised Funds, compte tenu de leur augmentation constante, une partie leur est consacrée. John Holm a bien voulu nous transmettre des rapports éclairants sur la perception par exemple des Etats-Unis, qui arrive à la même note que la France d’ailleurs, dans le rapport « the rules to give by, a global philanthropy legal environment index » présenté en annexe. John nous a aussi transmis des informations sur ce monde des donors advised funds, de plus en plus nombreux mais également critiqués. Il nous propose également un exposé très complet de Charities Aid Foundation of America. Un immense merci à tous ces participants. La réactivité de chacun, leur taux d’écoute par rapport à l’objectif poursuivi, les informations complémentaires apportés après première lecture, la disponibilité de chacun et chacune. Merci et

Bonne lecture ! Irène Serot Almeras


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I- CREATION D’UNE 501c3


TEMOIGNAGES Association 2° Investing Initiative (2°ii) Serge Betsen Academy Kids Home America Inc Reporters without Borders USA Calso Friends of Ecole Polytechnique, structure sœur de collecte aux USA


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Témoignagne proposé par

Paul Margie et Traci Biswese,

du cabinet Harris, Wiltshire & Grannis LLP

Paul Margie a été un des premiers à répondre présent à cet appel à contributions que nous avons lancé pour mettre sur pied ce rapport. Avec sa collègue, Traci Biswese, ils nous proposent ici un exposé complet et documenté sur le processus que doivent suivre les ONG internationales lorsqu’elles souhaitent s’implanter aux Etats-Unis en mettant en place une 501(c)(3). Paul sait de quoi il parle puisqu’il a préparé et facilité, en tant qu’avocat « pro bono » la création de Telecom Without Borders, équivalent américain de l’association Télécom sans Frontières. Il poursuit d’ailleurs sa collaboration à titre bénévole pour cette association.

Paul Margie et Traci Biswese collaborent au sein du cabinet, Harris, Wiltshire & Grannis LLP. Wiltshire & Grannis LLP is a boutique law firm in Washington DC with leading telecommunications, technology, national security, litigation, and ethics practices. HWG is counsel to NGOs such as Télécoms Sans Frontières and the Asilia Charitable Corporation.

Article Disclaimer: This article has been provided for informational purposes only and is not intended and should not be construed to constitute legal advice or to invite an attorney-client relationship. Please consult your attorneys in connection with any fact-specific situation under federal, state, and/or local laws that may impose specific obligations on you and your company.

THE PROCESS FOR INTERNATIONAL NGOs SEEKING TAX-EXEMPT STATUS IN THE UNITED STATES

International NGOs’ ability to advance economic development, improve healthcare, protect the environment, defend women’s rights, and much more increasingly depends on the economic support not only of governments but also of individuals and private sector donors. The critical work of many French-headquartered NGOs in each of these areas draws such support from U.S. citizens. But U.S. citizens expect that their charitable donations will result in a tax deduction. In order to permit such an exemption for a donation to an NGO, however, the U.S. Internal Revenue Service (IRS) must grant the organization tax-exempt status. This status is commonly known by reference to the portion of U.S. law that permits it: Section 501(c)(3) of the tax code. Thus, a tax-exempt NGO is called a 501(c)(3) organization.


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This article provides an overview of the U.S. 501(c)(3) system to assist an NGO in considering whether seeking 501(c)(3) status is right for their organization. It is important, however, to recognize that each organization should seek legal advice from a U.S. attorney before pursuing such a strategy in order to understand how the tax laws apply to its particular situation.1

In order to successfully receive tax-exempt status from the IRS, an NGO generally (1) must be an independent nonprofit corporation organized in a U.S. state; (2) have a U.S. Employee Identification Number (EIN); (3) have a Board of Directors; (4) have a “charitable purpose”; and (5) apply to the IRS using Form 1023.

Organization and Formation of a Nonprofit Corporation in a U.S. State

Tax-exempt NGOs must be organized as corporations. U.S. corporations are registered by individual states, not by the federal government. Registration requirements and forms of organization vary from state to state. The process generally involves drafting and providing a brief description of the organization, its mission, name, the address of an agent within the state, and paying a filing fee. Most states have an incorporation statute that streamlines the process. In some states, certain organizations formed for religious, educational, or other benevolent purposes must also register with a state charity official charged with protecting charitable assets and regulating the charitable solicitation of funds from the public.

Before seeking tax-exempt status from the IRS, a prospective entity must first pursue this process and form a state nonprofit corporation. The name of the newly formed nonprofit corporation cannot be the same as the name of another corporation on file with a particular state’s corporations’ office (generally the Secretary of State’s office). The state corporations’ office can provide information as to whether a proposed name is available for use. For a small fee, an organizer can typically reserve a name for a brief period of time until an NGO has filed its articles of incorporation. For more information, a prospective incorporator may contact a particular state’s corporations’ office.

States generally require entities to file “articles of incorporation” with the state’s corporate filing office. Articles of incorporation, sometimes called a certificate of incorporation, must set forth certain information as mandated by state statute. Articles of incorporation include the entity’s name and office address. Although laws vary from state to state, the purpose of the corporation and the rights and liabilities of shareholders and directors are typical provisions required in the document. Many states provide a downloadable form that meets the state’s minimum requirements for articles of incorporation.

1 The information presented in this article is provided for informational purposes only and does not constitute

legal advice. These materials are intended, but not promised or guaranteed, to be current, complete, or up-to-date and should in no way be taken as an indication of forthcoming outcomes. Transmission of the information is not intended to create, and the receipt does not constitute, an attorney-client relationship between sender and receiver. This article is offered only for general informational and educational purposes. It is not offered as and does not constitute legal advice or legal opinions. You should not act or rely on any information contained in this article without first seeking the advice of an attorney.


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Other important documents that an entity may need include bylaws and organizational minutes. An entity’s bylaws are the internal governing guidelines that contain rules and procedures for holding meetings, voting on issues, and electing directors and officers. Most commonly, a corporation’s directors adopt bylaws at its first board meeting. An entity’s directors make major policy and financial decisions for the entity. Many states allow nonprofit entities to have just one director, but other states require at least three. The process of selecting U.S. directors and establishing a strong Board of Directors is very important, but is beyond the scope of this article. There are many excellent resources on these topics, and NGOs should carefully consider these resources before proceeding.2 Because the process for each state is different, NGOs should check with the state department of consumer affairs (or a similar state licensing agency) in their selected state for information concerning other state licensing requirements for the particular type of organization sought. For instance, the IRS rules for nonprofits do not impose a citizenship or residence requirement for board members. However, entities should investigate state laws (through the State Attorneys General offices). NGOs should also consider whether the involvement of non-citizens would make the organization ineligible for any grants or contracts, or could impact the determination of whether the organization is independent from a foreign NGO.

Acquiring an Employee Identification Number

After receiving an approved certificate of incorporation, an entity must request an EIN from the IRS via an online application.3 The IRS has provided guidance on necessary steps in the “Hiring Employees” section of its website.4

2 Helpful resources for establishing a strong Board of Directors include:

� “Recruiting and Vetting Nonprofit Board Members,” The Bridgespan Group, available at http://www.bridgespan.org/Publications-and-Tools/Hiring-Nonprofit-Leaders/Recruiting-Board-Members/Recruiting-and-Vetting-Nonprofit-Board-Members.aspx#.VNKkrGjF-dk;

� “Board of Directors,” Center for Nonprofit Excellence, available at http://thecne.org/board-directors;

� “Building Your Nonprofit’s Board,” Nolo, available at http://www.nolo.com/legal-encyclopedia/building-nonprofits-board-30046.html;

� “Nonprofit Boards - Find Them, Feed Them, Put Them to Work,” About.com, available at http://nonprofit.about.com/od/nonprofitboards/a/boardhub.htm; and

� “Nonprofit Board of Directors: Choose It with the 3 ‘Ws,’” Nonprofit Hub, available at http://www.nonprofithub.org/starting-a-nonprofit/nonprofit-board-of-directors-choose-it-with-the-3-ws/.

3 See “Apply for an Employer Identification Number (EIN) Online,” IRS, available at http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Apply-for-an-Employer-Identification-Number-(EIN)-Online.

4 See “Hiring Employees,” IRS, available at http://www.irs.gov/Businesses/Small-Businesses-&-Self-

Employed/Hiring-Employees.


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Applying to the IRS for Tax-Exempt Status

Once a nonprofit entity has received a state certificate of incorporation and an EIN, it may seek qualification from the IRS as exempt from state and federal taxation through a formal application process. The law that governs the IRS is called the Internal Revenue Code. The Internal Revenue Code includes the rules that permit the IRS to designate entities as tax exempt, and IRS rules provide further detail.5

The Internal Revenue Code includes a list of undertakings that may make an organization eligible for tax-exempt status. Generally, entities organized solely for charity, education, testing for public safety, religion, literary purposes, science, and certain sports—that are not-for-profit and do not play a partisan political role—may apply to receive exemption from federal income taxation on all income related to these purposes. Entities organized for political purposes may receive limited tax exemption, and only for income received from contributions solicited from the general public, membership dues, or fundraising events. The IRS lists a series of questions6 to help determine whether a particular nonprofit corporation is eligible for federal tax exemption on its website.

NGOs that meet the IRS’s criteria may apply for tax-exempt status under Section 501(c) of the Internal Revenue Code. Section 501(c) provides for twenty-nine types of nonprofit organizations that may be exempt from some federal income taxes. Sections 503 through 505 of the Code present requirements for attaining such exemptions. Many states refer to Section 501(c) for definitions of organizations exempt from state taxation as well. 501(c) organizations can receive unlimited contributions from individuals, corporations, and unions.

The most common type of nonprofit, tax-exempt organization falls under category 501(c)(3). These nonprofit organizations are exempt from federal income tax if their activities have one or more of the following purposes: charitable, religious, educational, scientific, literary, testing for public safety, fostering amateur sports competition, or preventing cruelty to children or animals. The IRS has made available information, explanations, guides, forms, and publications relating to such organizations on irs.gov.7

5 The IRS provides applicants with very good guidance on its website. See “Tax Information

for Charities & Other Non-Profits,” IRS, available at http://www.irs.gov/Charities-&-Non-Profits. It is important to note that the U.S. has many laws relating to immigration, lobbying, and financial crimes that may affect all organizations operating within the U.S., including NGOs. See “Fact Sheet: Non-Governmental Organizations (NGOs) in the United States,” HumanRights.gov, available at http://www.humanrights.gov/fact-sheet-non-governmental-organizations-ngos-in-the-united-states.html#_ftn2. Entities seeking to operate or organize in the U.S. should review these laws carefully.

6 See “Application Process,” IRS, available at http://www.irs.gov/Charities-&-Non-Profits/Application-Process. 7 See, e.g.,

� “Charities and Nonprofits A-Z Site Index,” IRS, available at http://www.irs.gov/Charities-&-Non-Profits/Charities-and-Nonprofits-A-Z-Site-Index;


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To apply for a 501(c)(3) exemption, an NGO must submit Form 1023 to the IRS.8 The state where an NGO is organized must approve its request to incorporate, and the IRS must assign it an EIN, before the NGO can submit Form 1023. An entity may be required to complete IRS Form 87189 (User Fee for Exempt Organization Determination Letter Request). It is important to follow the IRS instructions provided for each form very carefully. NGOs should strongly consider hiring U.S. counsel or working with a specialized consultant in the U.S. when seeking approval from the IRS, and should consult with tax counsel on the implications of 501(c)(3) status.

A Case Study – Forming a Nonprofit Organization in New York

To illustrate how this process works, we will describe the formation of a nonprofit organization in the State of New York. Nonprofit corporations are formed in the State of New York pursuant to its Not-for-Profit Corporation Law (NPCL). The NPCL provides that not-for-profit corporations organized in New York may not be formed for profit or financial gain, and that no corporate assets, income, or profit may be distributed to such a corporation’s members, directors, or officers unless specifically permitted by the NPCL. We describe, below, the steps involved in forming a nonprofit corporation in New York. Interested entities should read this list in conjunction with the NPCL in New York10 (N.Y. N.P. Corp. Law) and the New York State Department of State’s guide to forming a not-for-profit Corporation,11 and seek the advice of local counsel.

First, an entity seeking to operate as a New York nonprofit corporation must choose a name for the entity and check for availability of its chosen name. An entity may search for the availability of its proposed name by writing to the New York Department of State or

� “Webinars for Exempt Organizations,” IRS, available at http://www.irs.gov/Charities-&-Non-

Profits/Webinars-for-Exempt-Organizations;

� “Current Edition of Exempt Organizations Update,” IRS, available at http://www.irs.gov/Charities-&-Non-Profits/Current-Edition-of-Exempt-Organizations-Update;

� “IRS Stay Exempt: Tax Basics for Exempt Organizations,” IRS, available at http://www.stayexempt.irs.gov/;

� “Life Cycle of an Exempt Organization,” IRS, available at http://www.irs.gov/Charities-&-Non-Profits/Life-Cycle-of-an-Exempt-Organization; and

� “Tax Exempt & Government Entities Division At-a-Glance,” IRS, available at http://www.irs.gov/uac/Tax-Exempt-&-Government-Entities-Division-At-a-Glance.

8 See “Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue

Code,” IRS available at http://www.irs.gov/uac/Form-1023,-Application-for-Recognition-of-Exemption-Under-Section-501(c)(3)-of-the-Internal-Revenue-Code.

9 See “Form 8718, User Fee for Exempt Organization Determination Letter Request,” IRS, available at

http://www.irs.gov/uac/Form-8718,-User-Fee-for-Exempt-Organization-Determination-Letter-Request. 10 See “Not-for-Profit Corporation Filings,” New York State Department of State, Division of Corporations, State

Records & UCC, available at http://www.dos.ny.gov/corps/nfpcorp.html#certinc. 11 See “Not-for-Profit Incorporation Guide,” New York State Department of State, available at

http://www.dos.ny.gov/forms/corporations/1511-f-l_instructions_new.pdf.


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Division of Corporations, or by checking name availability using the New York Corporation and Business Entity Database12 to help identify names that have already been taken (please keep in mind that this database may not be complete). In New York, the name of a nonprofit corporation must contain one of the following words: “Corporation,” “Incorporated,” “Limited,” or their abbreviations.13

Next, an entity must appoint directors, keeping in mind that it must have at least three directors, aged eighteen years or older.14 Note that directors do not have to reside within the State of New York.

The next step is to file the certificate of incorporation. An incorporator must be at least eighteen years of age, and the certificate must be filed with the Department of State’s Division of Corporations.15 A sample certificate form is available on the New York Department of State’s website.16 Domestic not-for-profit corporations are formed by filing a certificate of incorporation with the Department of State. Foreign not-for-profit corporations, which are formed under the laws of another state or country, may apply for authority to conduct activities in New York State by filing an Application for Authority with the Department of State. A completed certificate of incorporation, together with a filing fee (payable to the Department of State), must be submitted for filing to the Department of State, Division of Corporations, State Records and Uniform Commercial Code. A certified copy of the certificate of incorporation may be requested for an additional charge. Expedited Handling Services are also available for an additional fee. Upon filing a certificate of incorporation with the Department of State, an official filing receipt is issued to the certificate’s filer.

Next, a New York entity must create its bylaws, keeping in mind that there are no set criteria for the content of bylaws, but they typically set forth internal rules and procedures. Bylaws are not required to be filed with the Secretary of State. Rather, an entity must keep a copy at its principal place of business. Another important step for such an entity is holding its organizational meeting. A New York charitable entity must also register with the Charities Bureau of the Attorney General’s Office.17

Once this process is complete, a New York charitable entity can follow the process described herein to obtain an EIN and then submit Form 1023 to the IRS.

* * *

12 See “Corporation & Business Entity Database,” New York State Department of State, Division of Corporations,

State Records & UCC, available at http://www.dos.ny.gov/corps/bus_entity_search.html. 13 See N.Y. N.P. Corp. Law §§ 301-303 (2014) for more information on all naming requirements. 14 For exceptions to this rule, see id. § 701. 15 Visit http://www.dos.ny.gov/corps/. 16 Visit http://www.dos.ny.gov/forms/corporations/1511-f-l.pdf (last visited Feb. 4, 2015). 17 See “NYS Attorney General’s Charities Bureau,” New York State Attorney General, at

http://www.charitiesnys.com/home.jsp.


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The goal of this article is to assist NGOs in understanding the process for obtaining tax-exempt status at a high level. This will enable NGOs to assess the time and resources required to successfully pursue an application. Once an NGO determines to proceed, it should strongly consider hiring local counsel and consulting with tax counsel on the implications, rights, and responsibilities of tax-free status. Finally, NGO’s should draw upon the very helpful resources the IRS provides for their use. The following table includes some of the most useful materials.

Name Title

Publication 15 Circular E, Employer’s Tax Guide

Publication 15-A

Employer’s Supplemental Tax Guide

Publication 526 Charitable Contributions

Publication 557 Tax-Exempt Status for Your Organization

Publication 598 Tax on Unrelated Business Income of Exempt Organizations

Publication 892 How to Appeal an IRS Decision on Tax-Exempt Status

Notice 1333 Nondeductible Lobbying and Political Expenditures

Notice 1335 Gaming Activities

Notice 1340 Tax-Exempt Organizations and Raffle Prizes - Reporting Requirements and Federal Income Tax Withholding

Publication 1771

Charitable Contributions: Substantiation and Disclosure Requirements

Publication 1828

Tax Guide for Churches and Religious Organizations

Publication 3079

Tax-Exempt Organizations and Gaming

Publication 3386

Tax Guide for Veterans’ Organizations

Publication 3833

Disaster Relief: Providing Assistance through Charitable Organizations

Publication 4220

Applying for 501(c)(3) Tax-Exempt Status

Publication 4221-NC

Compliance Guide for Tax-Exempt Organizations (other than 501(c)(3) Public Charities and Private Foundations)

Publication 4221-PC

Compliance Guide for 501(c)(3) Public Charities

Publication 4221-PF

Compliance Guide for 501(c)(3) Private Foundations

Publication 4302

A Charity’s Guide to Vehicle Donation


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Name Title

Publication 4303

A Donor’s Guide to Vehicle Donation

Publication 4386

Compliance Checks: Examination, Audit or Compliance Check?

Publication 4573

Group Exemptions

Publication 4630

Exempt Organizations Product and Services Catalog

Publication 4779

Facts about Terminating or Merging Your Exempt Organization

Available at http://www.irs.gov/publications/


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1. CREATION D’UNE 501(C)(3) – TEMOIGNAGES

Témoignage proposé par Hugues Chenet

co fondateur

www.2degrees-Investing.org

Parfaite introduction pour cette série de témoignages, l’association 2° Investing Initiative (2°ii), a mis en place au cours de ses derniers mois leur stratégie d’implantation aux États-Unis. Hugues Chenet nous propose ici son témoignage sur le processus qui est donc encore en cours. A noter que la volonté de 2°ii de réfléchir à une implantation américaine est venue de sollicitations qu’ils ont pu recevoir de structures intéressées par leurs travaux de ce côté de l’Atlantique. Hugues Chenet est co-fondateur de l’initiative 2° Investing, il exerce les fonctions de directeur

scientifique. Auparavant, Hugues Chenet travaillait depuis 2007 en tant que manager et expert « sustainability » chez OTC Conseil, société spécialisée dans la gestion des risques financiers. Il a développé la pratique risque environnemental et dirigé l’équipe Développement Durable, orientée vers le secteur de la finance, en développant les interactions entre les institutions financières (départements Risk Management et Développement Durable) et les ONG de défense de l’environnement. Hugues détient un doctorat en géophysique, et a travaillé pendant 7 ans dans

le milieu académique (Institut de Physique du Globe de Paris [IPGP], Agence Spatiale Japonaise [JAXA]). 2° Investing Initiative (2°ii, dit « two degrees ») a été créée en 2012 par Stanislas Dupré, Hugues Chenet et Jean Pierre Sicard, avec le soutien de la Caisse des Dépôts et du Ministère de l’Environnement. Initialement basée à Paris, 2°ii est une association d’intérêt général qui fonctionne en think tank. L’association 2°ii est dédiée à la mobilisation du secteur financier sur le financement du long-terme et de la transition vers une économie bas-carbone. Le « 2° » fait référence à l’objectif de limitation du réchauffement climatique global à +2°C, valeur mise en avant par la communauté scientifique comme étant un seuil à ne pas dépasser pour préserver un équilibre gérable de la planète, qui constitue désormais une cible partagée par les Etats réunis autour de la Convention-Cadre des Nations Unies sur les Changements Climatiques (CCNUCC). Les travaux de 2°ii portent sur trois axes : 1. le développement de méthodes et outils d’évaluation ; 2. l’analyse des processus d’investissement ; et 3. le développement de propositions en matière de réglementation financière.


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Les études sont effectuées en partenariat technique avec les organisations internationales de référence (UN Environment Program Inquiry sur le volet réglementation, UNEP Financial Initiative, World Resources Institute et GHG Protocol sur le volet évaluation, Agence Internationale de l’Energie et UNEP Financial Center – Frankfurt School of Finance & Management sur l’analyse des besoins d’investissement et de financement) et les gouvernements (Ministères français et allemand de l’environnement, Commission Européenne, Banque Centrale et State Council chinois). L’association qui compte une centaine de membres et une dizaine d’employés est financée par des subventions, des dons d’organisations, d’institutions financières privées et de fondations. La liste de travaux et publications est disponible sur www.2degrees-Investing.org. Bien que née à Paris, l’association n’a pas vocation à se focaliser sur la France, ni même l’Europe, son sujet étant éminemment global, à double titre (climat, finance). Ainsi, dès la première année nous avons commencé à développer un réseau pointu et des partenariats dans différents pays avec des organisations travaillant sur nos sujets. En Europe, en Chine, et bien évidemment aux Etats-Unis. L’intérêt pour 2°ii de travailler avec les USA est triple. Tout d’abord la place financière américaine est au premier plan, il est donc important pour nos travaux d’y être connecté. Par ailleurs, la perspective américaine concernant le rôle du secteur financier et son type de fonctionnement est très spécifique par rapport au contexte européen. Enfin, les Etats-Unis sont un endroit où la société civile est très active, et rapidement nous avons été sollicité pour y être présent et y développer nos activités, notamment de la part de fondations qui travaillent sur les questions climatiques ou appuient le mouvement « fossil free ». Ainsi la question qui s’est posée était : « comment installer l’association aux Etats-Unis ? ». Dans nos préoccupations liées figuraient l’objectif d’avoir des employés locaux, d’avoir la capacité de faire venir des employés de la structure française, et d’avoir accès à des financements d’organisations américaines. Pour ce qui est de la partie financière et de notre éligibilité à recevoir des dons de fondations, nous avons rapidement compris que toutes nos préoccupations étaient résumées une cible : obtenir un 501(c)3. Pour le reste, la boîte de Pandore s’ouvrait, notamment sur les questions de montage juridique de la structure, entre un statut « domestic » et « foreign », ayant différentes implications sur la gouvernance et le lien avec l’organisation française, et sur les questions de droit du travail, concernant les employés français susceptibles de travailler aux Etats-Unis pour monter et développer la structure américaine. Rédaction et cohérence des statuts, mise en place d’un Board of Directors, nature des liens avec l’organisation française, capacité d’employeur et obligations juridiques, sociales et fiscales … autant de questions sur lesquels il a fallu solliciter des personnes dont c’est le métier.


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Après une première phase de « réseautage » pour bénéficier de l’expérience d’organisations plus ou moins proches de la nôtre, nous nous sommes tournés vers un avocat, que nous avons choisi par l’entremise d’une association française (ayant peu ou prou effectué les mêmes démarches il y a quelques années) rencontrée grâce au réseau du Service de la Mission des Relations avec la Société Civile de l’Ambassade de France à Washington. Pendant ce temps, entre la situation de départ 100% française et l’établissement d’une structure américaine autonome disposant d’un statut 501(c)3, nous avons pu renforcer nos liens avec les fondations américaines. En effet, nous avons bénéficié de deux grants de la part de deux fondations, dont un des objectifs était de nous permettre entre autre d’établir notre activité à New-York, pour avoir plus d’impact aux E.-U. Afin de pouvoir disposer de ces financements, nous avons d’abord commencé à mettre en place un fiscal sponsorship avec une organisation partenaire implantée à New-York et à Londres, en attendant que la structure américaine de 2°ii soit en place et dispose d’un statut 501c3. Mais rapidement, nous avons opté pour un autre dispositif, dit d’equivalency determination, qui permet à une organisation basée en dehors des E.-U. de se voir « certifiée équivalente » à une organisation de type 501(c)3. Ceci autorise une fondation à attribuer et verser un financement une association française comme la nôtre en bénéficiant du même statut fiscal qu’avec une NGO estampillée aux USA. Nos deux fondations partenaires en question étant toutes deux membres d’une organisation appelée NGO Source, qui fournit cette equivalency determination, nous avons sollicité leurs services (gratuits car pris en charge par les fondations membres) et lancé la démarche, qui s’apparente à un petit audit. Ainsi, en remplissant le dossier administratif (conséquent mais gérable pour une association bien constituée/organisée), en quelques semaines la demande était validée de leur part et 2° Investing Initiative France a pu recevoir ses premiers financements américains. À ce jour (février 2015) une partie des questions est résolue, l’incorporation administrative doit avoir lieu dans quelques jours et permettre un premier recrutement local. Mais un certain nombre de démarches est encore en cours, notamment pour établir le fameux sésame 501(c)3. … à suivre au prochain épisode ! ---


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Témoignage proposé par Odile Prévot

Secrétaire Générale, Serge Betsen Academy

Odile Prévot a bien voulu témoigner dans ce rapport afin de nous exposer les différentes étapes franchies pour installer dans la durée la Serge Betsen Academy aux Etats-Unis. Odile Prévot est avocat en droit des affaires, inscrite au Barreau en France et en Angleterre. Pendant 17 ans, elle s’est spécialisée en fusions acquisitions pour des sociétés internationales et des fonds d’investissements et a travaillé entre Sacramento, Paris et Londres.

Aujourd’hui basée à Washington DC, Odile est Associée dans un cabinet de conseil spécialisé dans les relations gouvernementales entre les Etats-Unis et l’Afrique subsaharienne. Odile est impliquée plus particulièrement dans la politique de développement international, le renforcement des capacités des organisations de la société civile, ainsi que les négociations commerciales avec les entreprises. Odile est aussi la Secrétaire Générale de la Serge Betsen Academy, association active au Cameroun qui a pour mission de transmettre aux enfants des valeurs et des repères pour se construire dans la vie, en les

accompagnant scolairement et médicalement. Odile est diplômée de l’Université de Paris II-Assas, d’un LLM de l’Université de McGeorge School of Law en Californie, et du College of Law à Londres. Début septembre 2013, Serge Betsen s’est rendu aux Etats-Unis afin d’assister en tant qu’ambassadeur sportif au sommet annuel de Beyond Sport, l’organisme mondial qui encourage la promotion, le développement et le soutien du sport comme force de changements positifs à travers le monde. Lors de cet événement, la Serge Betsen Academy (SBA) a été reconnue comme membre du Global Rugby Collaborative, un organisme qui a pour vocation de « créer un meilleur monde à travers le rugby », ce qui vient renforcer la création d’une antenne SBA aux Etats-Unis qui aura pour but principal de lever des fonds pour les actions menées au Cameroun, aux Etats-Unis et à travers le monde selon le triptyque rugby-scolarité-santé. Ainsi 2013 est l’année de l’entrée officielle de la SBA et de son fondateur Serge Betsen sur le sol américain. Une entrée officielle qui s’est faite grâce à l’aide d’un cabinet d’avocats américain sur place qui a accepté de nous aider pro bono. Renforcer la visibilité de la France a l’étranger par la popularisation du rugby sur un territoire encore très frileux du ballon ovale, aider les enfants défavorisés dans le monde, deux axes que Serge Betsen avait en tête quand je suis partie de Londres pour raison professionnelle pour aller vivre aux Etats-Unis.


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Déjà installés en France et au UK, l’idée de créer une 501 (c) 3 à Washington DC nous a vite été suggérée afin de lever des fonds sur place et de se voir reconnaitre une certaine légitimité. La création de la 501 (c) 3 s’est faite avec peu de difficulté car le schéma était simple : aucun salarié, un Board de bénévoles que Serge et moi connaissions, un expert- comptable sur place, des avocats, un coach de rugby …l’ensemble constituant le conseil d’administration américain de la SBA USA. Les démarches administratives et l’utilisation des fonds nous ont longuement été expliquées par les avocats américains. Déjà immatriculées en France, au Cameroun, au UK et maintenant à Washington DC, nous devions suivre une procédure très stricte. Les 3 autres entités ont été auditées avant l’immatriculation de celle de DC et aujourd’hui l’administration, la comptabilité et le juridique de ces 4 entités doivent être vue séparément aux yeux de l’administration américaine. Même si la Serge Betsen Academy a son siège social à Biarritz, les « filiales « au UK , au Cameroun et aux USA sont régies indépendamment et selon des règles toutes différentes. Il est évident que la gestion de ces quatre entités n’est pas sans conséquence financière et qu’une installation aux USA n’est pas si simple si vous n’avez pas déjà un réseau établi, des outils et des méthodes de travail qui ont déjà fait leur preuve. Nous venions de Londres ou nous nous sommes formés aux méthodes anglo-saxonnes du fundraising et avions mis en place des procédures qui pouvaient s’accorder avec celles des USA. Depuis la première visite de Serge à Washington DC en 2013, le temps a passé puisque l’association SERGE BETSEN ACADEMY USA multiplie les opérations pour se faire connaître des acteurs américains. D’une invitation aux journées des CSO (civil society organisations) de la Banque Mondiale et du Fond Monétaire International, au parrainage d’événement sportifs, en passant par des formations pour les jeunes passionnés de rugby prodiguées par Serge lors de son passage en novembre 2014, la SBA USA s’installe progressivement comme un acteur actif du « rugby humanitaire ».


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La petite histoire de Kids Home America, Inc

ou comment établir et faire vivre une 501c3 aux Etats Unis

Proposé par Caroline Faucher-Winter,

trésorière et secrétaire

La vie est faite de rencontres, à tout moment. J’avais entendu parler de la Epic Foundation par Corinne Servily, CEO de Faircom. Nous avons donc noué contact, et parmi les associations qui intéressent Epic Foundation, il se trouve Kids Home, qui fonctionne beaucoup sur la base du volontariat et dans plusieurs parties des Etats-Unis, puisque Caroline Faucher-Winter qui témoigne dans ce rapport est basée à New York, alors que Sonia Rousseau-Lopez qui m’a proposé de contacter Caroline est elle, à Washington.

Caroline Faucher-Winter vit aux Etats Unis depuis 2004 et à Brooklyn depuis 2009. Professionnelle des Relations Presse et Publiques notamment dans le domaine des nouvelles technologies jusqu’en 2012, elle se consacre aujourd’hui à l’éducation de ses 3 enfants âgés de 6 mois à 12 ans et soutient son mari Alexandre Winter, entrepreneur. Née en France et élevée en Alsace, elle et son mari sont de fervents défenseurs de leur culture et ne ratent pas une occasion de la faire découvrir à leurs amis, notamment par le biais de la gastronomie. Elle est depuis 2013, Trésorière et Secrétaire de Kids Home America, Inc et membre du board avec Magali Crosta du Parc (Présidente),

Florence Chataignier et Sonia Rousseau. Pour plus d’information visitez www.kids-home.org ou contactez [email protected] Kids Home America, Inc est une “non-profit” bénéficiant depuis novembre 2013 du statut 501(c)3 vulgairement appelé «tax exempt status ». L’aventure de Kids Home America a commencé lors de ma rencontre à Brooklyn en 2010 avec Magali Crosta du Parc, fraichement débarquée à New York avec sa famille. Elle est directrice des programmes et co-fondateur avec son mari Nicola Crosta de Kids Home Foundation en Thailande. Depuis plus de 12 ans, Kids Home Foundation soutient des enfants et familles des bidonvilles de ChiangMai. A l’aide d’une équipe d’une douzaine de travailleurs sociaux et éducateurs sur le terrain, Kids Home identifie les enfants les plus vulnérables et leur apporte des solutions sur-mesure et pérennes. Depuis cinq ans, les équipes de Kids Home se concentrent notamment sur l’aide à la scolarisation des enfants dont les parents travaillent et vivent sur les chantiers de construction.


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C’est l’amitié d’abord puis l’intérêt grandissant pour le travail particulièrement qualitatif et innovant qu’elle et son mari effectuaient pour soutenir ces enfants qui m’ont rapidement convaincue de m’impliquer un peu plus. Mais comment? Je suis une professionnelle des Relations Publiques, spécialisée dans le domaine des technologies, autant dire que l’humanitaire était à des années lumière de mon univers… Le rapport privilégié que Nicola et Magali entretiennent depuis 12 ans avec leurs donateurs est l’un des éléments clé pour convaincre un partenaire potentiel et c’est ainsi que peu après leur arrivée à New York, une de leurs relations a souhaité devenir un partenaire important de Kids Home Foundation. Une condition sine qua non pourtant : être en mesure de défiscaliser sa contribution comme le prévoit la loi dans le cadre d’une donation à une 501c3. Deux problématiques se sont immédiatement posées et devaient ainsi être résolues avant le 31 décembre:

1. Créer une entité capable de recevoir cette donation et dont la mission est de soutenir les programmes de Kids Home Foundation en Thailande

2. Obtenir ce statut de 501(c)3 pour que ce donateur et potentiellement d’autres, puissent déduire une partie de leur contribution de leurs impôts.

Le Fiscal Sponsorship: une solution simple et rapide mais transitoire Nous étions déjà au mois de novembre et le compte à rebours avant le 31 décembre avait commencé. Pas le temps de créer une entité américaine de Kids Home Foundation avant la fin de l’année et surtout, et c’est ici que le bât blesse, aucun budget pour payer des avocats, indispensables pour comprendre les rouages de l’administration américaine. C’est ainsi que nous avons découvert les avantages d’un Fiscal Sponsorship. En termes simples, une Organisation caritative de type 501(c)3 peut “héberger” une autre organisation caritative et lui faire bénéficier de son statut. Bien entendu, tout cela est encadré par la loi afin d’éviter tout abus. Il nous a fallu alors trouver un “sponsor” dont la mission soit au mieux similaire ou au moins complémentaire et prêt à nous aider. Il existe beaucoup de non profits qui offrent ce type d’aides et se rémunèrent en prélevant un pourcentage des donations obtenues. On peut trouver la définition exacte du fiscal Sponsorship sur le site du Council For Non Profit. Une liste de fiscal sponsors est aussi disponible sur ce site. Nous avons finalement opté pour un fiscal sponsorship avec une petite non-profit basée à Brooklyn, NY dirigée par une amie de Magali et Nicola. Cette solution nous permettait d’abord d’être plus efficaces puisque postuler pour un sponsorship via ces organisations énumérées plus haut peut s’avérer assez fastidieux et chronophage. De plus, nous nous sentions plus à l’aise de passer un accord avec des personnes que nous connaissions, en qui nous avions confiance. Un contrat décrivant le périmètre d‘action des deux parties fut établi, précisant notamment les obligations (reporting notamment) et frais à couvrir par Kids Home Foundation, la date de fin de ce sponsorship, l’établissement d’un compte séparé pour recevoir les donations et les procédures afin de transférer l’argent à Kids Home Foundation en Thailande.


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Quelques semaines plus tard, nous pouvions annoncer à notre donateur que nous pouvions recevoir sa contribution et qu’il serait en mesure de la déduire suivant les règles établies par le statut de 501(c)3 de notre sponsor. Bien que cette solution soit certainement viable pour bon nombre d’organisations caritatives, il nous a semblé qu’elle comportait quelques inconvénients comme par exemple l’obligation de communiquer des rapports au sponsor sur la manière dont l’argent est dépensé et de s’exposer potentiellement au refus de ce dit sponsor de vouloir financer tel ou tel projet. Nous souhaitions donc devenir indépendants et avons décidé de créer Kids Home America. Back to point A : nous n’avions toujours pas de budget pour un avocat… Les Américains : champions du pro-bono Le pro-bono et le bénévolat font partie intégrante de la vie des américains : de l’école primaire aux grandes universités, l’engagement des étudiants pour une cause humanitaire qu’elle soit au niveau de leur communauté ou international est particulièrement encouragé. Le pro-bono est aussi une part essentiel de l’activité d’un business aux Etats Unis : du simple café en bas de la rue qui offrira gratuitement son espace le temps d’un évènement de charité, de ce web-designer qui se mettra à votre service pour aider à créer une affiche, un artiste qui offrira ses toiles, un Chef qui se mettra à votre service le temps d’une réception… Il est très facile d’obtenir ce genre de contribution d’autant que c’est souvent une opération marketing pour eux qui n’est pas sans intérêt. Cela demande deux choses : avoir un réseau de connaissance (networking me voilà) et ne pas hésiter à l’utiliser. New York n’échappe pas à la règle, bien au contraire. M’étonnant un jour de l’argent que certaines personnes dépensaient pour participer à un diner de gala de charité pour le BAM (Brooklyn Academy of Music)- nous parlons ici d’une table à $15,000, un ami new-yorkais d’origine me dit : « Il faut que tu comprennes qu’il y a beaucoup de personnes très riches à New York et que leur statut dans la société représente tout pour elles. L’argent n’achète pas le statut. Le statut est déterminé par qui elles connaissent, et qui les connaît. Etre assis à coté d’une personne influente à un diner de charité non seulement propulse cette personne à un certain niveau socialement mais en plus donne une bonne image d’eux auprès d’autres personnes. En d’autres termes, il est bon de faire du bien mais il est encore mieux de le faire savoir et surtout en profiter pour entretenir son réseau et continuer d’être invités à participer à ce type d’évènement. » Welcome to the charity business… Je n’ai pas saisi immédiatement l’importance de son discours. Après des semaines à contacter des cabinets d’avocats qui offraient des services pro-bono (il y en a pléthore mais en général il faut être très patient, et/ou avoir un projet qui soit à destination de la communauté New yorkaise ou du moins américaine), je rencontre un de mes voisins, partenaires d’un des grands cabinets d’avocats de New York. N’ayant rien à perdre, je lui demande si son cabinet offre des services pro-bono et à ma grande surprise il soumet mon projet à son board. En février 2013, me voilà avec une armée de quatre avocats travaillant gratuitement pour nous. Objectifs : créer la structure Kids Home America, Inc et obtenir son statut 501(c)3.


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L’ensemble de la procédure a pris un peu moins de 9 mois. Incorporation, d’abord, ouverture d’un compte en banque, puis dépôt d’un dossier à l’IRS en juillet. Kids Home America, Inc a dû s’acquitter des frais d’incorporation et de dossier pour l’IRS ce qui représente une somme relativement modeste (environ USD1,000-) au regard de ce qu’aurait dû nous couter le travail d’un avocat, à fortiori quatre, sur une telle période. Le fundraising : Kids Home America, Inc est née. Mais le vrai chalenge est de le faire vivre. Le fundraising ou activité de recherche de financement peut être fait de différentes manières comme par exemple :

- de manière professionnelle en engageant des sociétés ou personnes spécialisées dans ce domaine et se rémunérant en prélevant un pourcentage des donations

- De manière plus « artisanale » en organisant des évènements faisant appel au réseau local et/ou en persuadant des personnes de devenir des partenaires plus importants.

Kids Home America n’est géré que par des bénévoles. Le temps est donc compté. Faire appel à des professionnels demanderait en amont une dépense au niveau marketing (plaquettes, Relations Publiques…) que nous ne pouvons nous permettre aujourd’hui. Nous ne souhaitons pas lancer de campagne email de large envergure par exemple qui demanderait des ressources en interne que nous n’avons pas et qui au niveau juridique impliquerait notamment que KHA soit incorporé dans l’ensemble des états américains où nous souhaiterions solliciter activement des donateurs potentiels. Ainsi, nous fonctionnons pour l’instant en recevant des donations de quelques partenaires importants qui correspondent au 2/3 du budget de KHA et le reste provient d’évènements que nous avons organisés tout au long de l’année : Marathon de lecture dans une école, concert de rock par des enfants, Cook4Good, le livre Jo&Gecko créé par Magali Crosta du Parc, etc. Le statut 501c3 nous aussi permis d’inscrire Kids Home America au programme Amazon Smile ainsi qu’à une initiative de Google appelée OneToday que nous avons connue par l’intermédiaire d’un ami ancien employé de Google. Cela ne demande aucune gestion de notre part et permet toutefois d’enregistrer quelques donations. Toutes ces actions nous ont non seulement permis de lever plus d’argent mais aussi de faire connaître notre action. Nous n’en sommes qu’au début, mais tout ceci semble prometteur ! Pas à pas, nous consolidons notre réseau de connaissances et profitons de la culture américaine du « paying forward » : les américains ont compris depuis longtemps que s’ils vous aident, vous les aiderez certainement un jour. C’est une manière de concevoir la relation à l’autre, de faire partie d’une communauté : on participe au gala de l’école de ses enfants, on achète les petits gâteaux du fils de son voisin, on se relaye pour porter à manger à cette personne malade… Chacun à son niveau, mais tous y participent et c’est sur ce principe que Kids Home America fonctionne pour l’instant.


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Nous entamons notre deuxième année d’activité. Le total des dons sur la première année était de $30,000. Nous avons recueilli plus de $50,000 en 2014… Nous ne sommes pas encore au niveau de la Clinton Foundation mais il faut bien commencer quelque part. Et toujours apprendre. Kids Home Foundation Key Facts

- Founded in 2002 by Nicola Crosta and Magali du Parc - Over 700 children supported in the region of ChiangMai, Thailand - 4 main programs focusing on health, safety, education and our flagship Access4Kids

focusing on migrant families. - 3 independent branches: Kids Home Thailand, Kids Home Italy, Kids Home France

and Kids Home America. - Over 20 main partners, corporate and private and many events cover the USD

150,000- budget - Kids Home America, Inc was founded in 2013 with 4 Board Directors - It is a non profit with a 501(c)3 status. - Kids Home America, Inc raised USD 50,000- in 2014 (from USD 30,000- in 2013)

Kids Home Foundation est en recherche permanente de volontaires dans tous les secteurs d’activités. N’hésitez pas à nous transmettre votre CV !


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Témoignage proposé par Delphine Halgand

Director of the Washington DC Office

http://en.rsf.org/

Comme d’autres structures françaises – Medecins du Monde, Action contre la Faim, Medecins sans Frontières, Handicap International etc… - Reporters sans Frontières a créé une entité aux Etats Unis « Reporters without Borders ». Delphine Halgand a bien voulu répondre à nos questions spécifiques sur la création d’une 501(c)(3).

Delphine Halgand has been working as the Director of the Washington DC office for Reporters Without Borders since December 2011. She runs the US activities for the organization and advocates for journalists, bloggers and media rights worldwide. Acting as RWB’s spokesperson in the US, Delphine regularly appears on American (Fox News, CNN, PBS, Democracy Now,…), foreign media (BBC World TV, Al Jazeera, France 24,…) and lectures at conferences in US universities (Harvard, UCLA,

Yale, Columbia…) on press freedom violation issues. She previously served as Press attaché in charge of outreach at the French Embassy to the US. Since graduating from Sciences Po Paris with an M.A. in Journalism, Delphine has worked as an economics correspondent for various French media (Le Monde, Les Echos, L’Express,...), focusing mainly on international politics and macroeconomic issues. RSF USA Reporters Without Borders was founded in France in 1985. As an organization with consultative status at the UN and UNESCO, Reporters Without Borders works to promote and defend freedom of information worldwide. Headquartered in Paris, the organization has 10 international offices (Berlin, Brussels, Helsinki, Geneva, Madrid, Rom, Stockholm, Tunis, Vienna and Washington DC) and over 150 correspondents spread across five continents. In the United States, Reporters Without Borders is a 501c3 organization carrying out the mission to protect and defend journalists working both internationally and in the United States. Americans treasure their First Amendment rights, but do not always realize the extent to which freedom of information is at risk globally, and how that affects their own right to be informed. Reporters Without Borders-USA (RSF-USA) seeks to raise awareness among Americans to this fact and getting Americans involved in preserving freedom of information at home and abroad.


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With the help of a few intrepid supporters, Reporters Without Borders-USA was founded in 2004 in New York City with the objective to extend the international mission of Reporters Sans Frontieres in the United States. In 2005 RWB-USA moved its work to Washington DC to strengthen the effectiveness of its advocacy, and quickly won a solid reputation in DC as an outspoken defender of freedom of information. Questions et témoignage 1) Vous avez créé une structure « Reporters Without Borders USA», pouvez-vous exposer comment cela s’est passé ? Quelles étapes ont été nécessaires ? Combien de temps cela a pris ? Le montant que votre fondation a dû investir dans cette action ? Etes-vous passé par un intermédiaire comme la fondation King Baudoin ou votre fondation a-t-elle d’emblée créé votre propre entité américaine ? Quelles sont les difficultés que votre fondation a rencontrées ? Depuis sa création, quel est le montant que vous avez pu récolter ? Ces montants sont-ils affectés à des actions mises en place aux Etats Unis ou est-ce que les fonds sont rapatriés en France ? Comment cela se passe-t-il alors au niveau fiscal ? Lorsque Reporters sans frontières a créé une entité américaine (Certificate of Incorporation) et obtenu le statut de charité publique 501(c)3 en 2004, je ne faisais pas encore partie de RSF. Nous avons travaillé avec des avocats qui nous conseillent depuis lors pro bono. Il est courant aux Etats Unis pour une charité publique d’obtenir le soutien pro bono et à long terme d’un cabinet d’avocats ou/et de comptables. Je n’ai pas eu vent de difficultés particulières rencontrées mais il s’agit d’un investissement en temps et en personnel dédié sur le long terme pour beneficier pleinement de ce que statut peut offrir. L’obtention du statut de 501(c)3 me parait essentielle pour toute entité qui souhaite développer un réseau local de donateurs individuels ou institutionnels, comme les fondations, sur le territoire américain. Les fondations nous demandent systématiquement une preuve de notre statut de 501(c)3 pour simplement déposer une demande de fonds. Les donateurs individuels sont également très attentifs à ce statut qui leur permet de déduire leur donation de leur revenu imposable. La construction d’un solide réseau local de donateurs qui s’appuie le plus souvent sur un “Board” compose de membres influents prend du temps mais bénéficie grandement à RSF USA qui voit son budget croitre d’année en année. Les fonds récoltés sont principalement dédiés à des projets mis en place aux Etats Unis mais peuvent aussi être reversés à des projets à l’international comme convenu avec les donateurs. 2) Quels conseils donneriez-vous à d’autres structures qui souhaiteraient créer des entités leur permettant de collecter des fonds aux Etats Unis ? Le jeu peut en valoir la chandelle, si l’on bénéficie d’un solide réseau local, si l’on est certain d’un potentiel de donations et si l’on est prêt à entrer dans l’arène du fundraising à l’américaine en adoptant le niveau de professionnalisme nécessaire.


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Témoignage proposé par Nicolas Hazard

Président de CALSO

http://www.calso.co

Nicolas Hazard est le fondateur et président de CALSO, entreprise sociale basée à San Francisco. Grâce aux différents projets conduits aux Etats-Unis, CALSO contribue à la réplication du « Made in France » social et au développement de l’Economie Sociale et Solidaire aux Etats-Unis. Nicolas Hazard a bien voulu répondre à nos questions spécifiques sur la création de cette 501(c)(3). Nicolas Hazard est un entrepreneur social français.

Il est Président de CALSO, mais aussi du Comptoir de l'Innovation, société française qui développe l’entrepreneuriat social à travers le monde, par le biais d’un fonds d’investissement et d’un réseau international d’incubateurs. Il est également Vice-président du GROUPE SOS (12 000 salariés, $900 millions de chiffre d’affaires).

Nicolas est membre de différentes organisations internationales comme :

� Le Conseil Innovation Sociale du Forum Economique Mondial, � Le Groupe d'Expert de la Commission Européenne sur l’Entrepreneuriat Social, � Le Conseil National du Développement et de la Solidarité Internationale.

Auteur de Capitalism for all, 20 enterprises that change the world (Edit the World, 2013) et de L'entreprise du XXIème siècle sera sociale ou ne sera pas (Rue de l'Echiquier, 2012), il rédige aussi une chronique mensuelle sur le "Made in France" social pour Le Monde, ainsi que pour le Guardian et la Stanford Social Innovation Review. Nicolas est diplômé d'HEC et de Sciences Po Paris. Questions et témoignage 1) Pourquoi et comment avez-vous créé une entité aux Etats-Unis ? Convaincus que beaucoup de problèmes sociaux sont globaux, il est possible de répliquer d’un pays à l’autre des concepts et méthodes qui fonctionnent. Ainsi, nous souhaitons développer à l’étranger le modèle français d’entrepreneuriat social. Les entreprises sociales ont un double impact. Fondées sur des modèles économiques viables et donc capables de générer des revenus, elles ont simultanément un impact social, contribuant à l’amélioration de la communauté. Pour répondre aux besoins fondamentaux de la société, les projets que CALSO développe concernent l’emploi, l’hébergement, ou encore la santé.


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Aux Etats-Unis, l’idée de créer une 501 (c)(3) nous a vite été suggérée par nos partenaires. Même s’il existe aujourd’hui dans le secteur de l’entrepreneuriat social des modèles hybrides ou « for-profits », cela ne nous a pas semblé très pertinent de créer ce type de structure. Nous avons préféré nous aligner sur les méthodes anglo-saxonnes. Le secteur « non-profit » étant très normé, nous souhaitions respecter les codes pour nous implanter plus facilement et rapidement. Obtenir le statut de 501 (c)(3) nous semblait donc être la meilleure solution pour être considéré comme un acteur social auprès des entités qui œuvrent pour le bien commun et luttent contre les différentes formes d’exclusion en Californie. 2) Quels sont les projets que vous développez actuellement?

Comme nous travaillons au développement du « Made in France » social, CALSO lance la première entreprise d’insertion en Californie. Nous levons les freins à l’emploi des personnes en situation d’exclusion (jeunes sans formation, personnes anciennement incarcérées, personnes issues de l’immigration et sujettes à discrimination, etc.) dans la Silicon Valley. Ces anciens chômeurs de longue durée sont intégrés en tant que salariés et accompagnés dans nos entreprises pour une période d’un an. A l’issue de cette période, ils peuvent alors trouver un emploi durable dans une entreprise classique, avec un taux de sortie positive de 85%.

Nous avons également créé Tarmac, nouvel accélérateur pour les entrepreneurs immigrants dans la Baie de San Francisco et TEXSO, futur incubateur pour les entrepreneurs sociaux à Austin. D’autres programmes comme la mise en place de solutions pour la prise en charge des SDF sont à l’étude. 3) Pourquoi êtes-vous convaincu du succès de votre modèle? Tout d’abord, parce que chaque projet que nous développons en Amérique est conduit avec des partenaires impliqués localement. En effet, de nombreux acteurs de la société civile américaine s’intéressent aux problématiques sur lesquelles nous travaillons. De là, nous sommes en étroite collaboration avec des associations, fondations, mais aussi des entrepreneurs et grandes compagnies américaines. Cela nous permet d’ailleurs de garantir avec succès l’adaptation des modèles à la réalité du territoire. D’autre part, les Etats-Unis sont une nation où l’on croit beaucoup en la capacité d’action des entreprises, plus qu’en l’Etat. C’est lorsque les dépenses sociales sont faibles que nos solutions et nos modèles d’entreprises sociales intéressent le plus. Sur le territoire américain, où l’économiste Thomas Piketty a eu du succès, les solutions que nous prônons trouvent de plus en plus d’échos.


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Témoignage proposé par Laurent Mellier

Directeur du développement

www.fondationx.org

Nous allons évoquer dans la partie qui va suivre les structures comme celles mises en place par la Fondation de France ou la King Baudouin Foundation US, entités dites « Friends of ». Ces entités ne doivent pas se confondre avec celles comme « Friends of Ecole Polytechnique ». Laurent Mellier, Directeur du développement de la Fondation de l’École polytechnique (FX) relate l’historique des actions du Friends of Ecole Polytechnique aux États-Unis et nous propose sa vision des enjeux d’une telle implantation américaine. L’exemple de cette Fondation est intéressante en ce sens que la structure « Friends of » peut reposer sur un excellent réseau de personnalités déjà présentes sur le territoire américain.

Après avoir été Directeur adjoint en charge de l'international, Laurent Mellier est depuis octobre 2011 Directeur du Développement à la Fondation de l'École polytechnique (présidée par Denis Ranque, Président d'Airbus Group), Administrateur du Friends of Ecole Polytechnique aux Etats-Unis et de l'Ecole Polytechnique Charitable Trust au Royaume-Uni. Laurent Mellier a été Directeur de l’Alliance Française de Washington de 1998 à 2010.

Il était auparavant Attaché culturel adjoint puis Attaché de presse et de communication au Consulat Général de France à Houston, Texas. De nationalités française et américaine, il est diplômé de Grenoble Ecole de Management (Sup de Co) et a obtenu en 2009 un Master II Professionnel en management culturel à l’Observatoire des Politiques Culturelles de Grenoble. Son travail de mémoire sur l’économie du don peut être consulté sur http://www.fundraisingetatsunis.com . 1 - La Fondation de l’École polytechnique Créée en 1987 par vingt grandes entreprises françaises à l’initiative du Conseil d’administration de l’École et avec le soutien des Anciens élèves et diplômés de l’X (AX), la Fondation de l’École polytechnique (FX) rapproche l’École, ses élèves et ses enseignants-chercheurs du monde de l’entreprise. Elle a pour missions principales d'aider à l'évolution de l'enseignement à l’École polytechnique, de développer la recherche et le transfert de technologies avancées vers l'industrie française, de financer le développement de l'X, et ainsi de contribuer à son rayonnement français et international. Aujourd’hui, elle est présidée par Denis Ranque (X 1970). Jean-Bernard Lartigue (X 1965) l’assiste en tant que Délégué général. La Fondation a lancé en 2008, sous l’égide de Claude Bébéar (X 1955), une première Campagne de levée de fonds, principalement auprès des Anciens élèves de l’École, en France et à l’étranger.


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Les contributions des entreprises n’ont pas été incluses dans l’objectif de collecte, et il n’y a pas eu de démarche pro-active auprès des Fondations, la priorité ayant reposé sur le réseau des Anciens. L’équipe du développement de la FX est aujourd’hui composée de 5 personnes. La Fondation de l’École polytechnique en quelques chiffres : - Une équipe de 20 bénévoles issus du monde de l’entreprise réalisant près de 1200

jurys auprès des élèves par an ; - La FX partenaire de 15 chaires actives à l’X ; - 2 filiales : FX-Conseil pour la valorisation des acquis technologiques et X-Création

pour la promotion de la création d’entreprise ; - 2 structures sœurs de collecte de fonds à l’étranger : le Friends of Ecole

Polytechnique aux USA et l’Ecole Polytechnique Charitable Trust au UK ; - Une première Campagne de levée de fonds menée entre 2008 et 2013.

Chiffres clés sur la première Campagne de levée de fonds (2008 -2013): - 35.2M€ collectés en dons et engagements en 5 ans ; - 3000 donateurs dont 201 Grands donateurs ; - Participation de 12,1% des Anciens ; - 1673 élèves soutenus à travers les actions financées entre 2008 et 2013.

2- Le Friends of Ecole Polytechnique, structure sœur de collecte aux USA Création de la structure Pour créer la structure Friends of Ecole Polytechnique, la Fondation a fait appel à un cabinet d’avocats, qui les a accompagnés sur tout le processus de création de l’entité. En amont, il est préconisé de s’interroger sur la nécessité de créer cette structure : est-ce indispensable pour optimiser l’effort de collecte, ou peut-on collecter via une structure intermédiaire ? (ex : la Fondation du Roi Baudoin, en Belgique). Pour répondre à ces questions, la Fondation a mené une étude afin d’évaluer : - le nombre d’Anciens vivant aux USA ; - leurs concentrations géographiques ; - leur potentiel de dons ; - le nombre de Grands donateurs potentiels ; - l’investissement qu’une structure représente en termes de temps et de coûts ; - la capacité à gérer et à animer la structure, et donc la nécessité ou non d’y affecter

un employé.

Après réflexion, la Fondation de l’X a décidé de créer une 501(c)3 mais sans recrutement d’employé sur place pour en assurer la gestion administrative et relayer la prospection sur le terrain.


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Cela a été confié à l’adjoint de la directrice du développement à qui Laurent Mellier a succédé en 2010. Toutefois, il a conservé ces prérogatives en 2011 lorsqu’il a pris le poste de directeur du développement. Organisation de la structure En 2007, lorsque la structure a été créée, l’équipe s’est attelée à la constitution d’un « Board », et a sollicité dans ce cadre des rencontres auprès d’Anciens de l’École établis aux Etats-Unis, pouvant s’engager à la fois en tant que « Grands donateurs » et membres du « Friends of ». L’accompagnement du cabinet d’avocats était un service pro bono, tout comme celui offert aujourd’hui par l’expert-comptable du « Friends of » aux États-Unis. L’utilisation des fonds suit une procédure très stricte. C’est sur proposition du comité de pilotage, réunis deux fois par an à l’École, que le comité de « Friends of » propose à son tour à la Fondation de l’École polytechnique d’affecter tel montant à tel projet, ce que la Fondation accepte formellement ensuite, sur décision de son Conseil d’administration. La collecte de 35,2 millions d’euros sur cette première campagne couvre un Business Plan proposé en amont par l’École, comprenant plus d’une vingtaine de projets. Les affectations votées par le Board du « Friends of » concernent prioritairement des projets ayant un lien direct avec les États-Unis : soutien des étudiants effectuant une quatrième année dans une université américaine, soutien à « Alliance », programme d’échanges d’élèves et de professeurs avec Columbia University, soutien aux étudiants du Master « Innovation technologique, Ingénierie et Entrepreneuriat » effectuant un stage dans la Silicon Valley, ou encore soutien au programme de recherche d’un chercheur américain sur le campus de l’X. Dans ce cadre, les fonds sont transférés à la Fondation en France, ou couvrent directement des dépenses effectuées sur le sol américain. Collecte du Friends of Ecole Polytechnique Entre 2008 et 2013, le « Friends of » a collecté 3,5 millions d’euros, soit 10% de l’objectif de collecte total, grâce à une centaine de donateurs dont près de 20 Grands donateurs (engagements supérieur ou égal à 25 k€). On estime à environ 1200 le nombre d’Anciens résidant aux Etats-Unis, répartis principalement, et de manière équilibrée, entre la côte est et la côte ouest. Les dons effectués au « Friends of » sont déductibles du revenu imposable aux Etats-Unis. Quels conseils donneriez-vous à d’autres structures qui souhaiteraient créer des entités leur permettant de collecter des fonds aux Etats Unis ? « Il faut se poser les bonnes questions en amont et ne pas se dire qu’en créant une structure aux USA, on va forcément lever des fonds plus facilement.


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Il faut être conscient de l’investissement que cela demande en temps et en argent, investissement indispensable mais qui n’en vaut parfois pas la peine si la collecte n’est pas conséquente. Que l’on ait un employé dédié à la structure sur place, ou en France, que l’on fasse appel à des professionnels sur place pour la prospection ou l’administration, il faut évaluer ce que cela représente financièrement. Il me semble indispensable de définir préalablement la cible à laquelle on va s’adresser, en évaluer la potentialité et la réactivité, connaitre la « compétition » locale et les freins à la collecte dans la thématique sur laquelle on travaille. Aux États-Unis, le fundraising est davantage ancré dans la culture qu’en France, mais en contrepartie, les gens sont sollicités avec des outils et des méthodes plus professionnalisés et des équipes plus fortes et plus présentes. Il est essentiel d’arriver à atteindre ce degré de professionnalisation pour convaincre une cible de donner à sa cause plus qu’à une autre. Il est important aussi de se constituer un réseau sur le territoire sur lequel on collecte, d’y avoir des relais solides et fiables, même si beaucoup d’aspects peuvent aujourd’hui être gérés à distance par Internet. »


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II- Collecter sans le 501c3

Ceux qui peuvent vous aider à obtenir l’indispensable Equivalency Determination

NGO SOURCE

GLOBALGIVING

THE PHILANTHROPIC INITIATIVE


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Témoignage proposé par Ken Tsunoda

TechSoup global General Manager

http://www.ngosource.org/ Ken Tsunoda nous propose ci dessous de revenir sur la definition de ce “Equivalency Determination”, étape indispensable pour qu’une structure n’ayant pas de 501c3 puisse bénéficier de fonds issus d’une entité américaine. NGO Source est comme on pourra le constater une entité très récente, mais qui montre le besoin grandissant des fondations américaines de trouver des intermédiaires afin d’éviter une perte de temps pour chaque dossier lorsqu’elles veulent financer des structures en dehors des Etats Unis, financer directement et localement. Cette tendance, que l’on retrouvera dans la montée en puissance des Donor Advised Funds confirme la volonté des bailleurs américains qui agissent à l’étranger de ne pas forcément passer par les traditionnelles ONG internationales.

I joined NGOsource last June as its general manager. Since then I’ve devoted myself to raising awareness of the vast potential of NGOsource. Before joining the NGOsource team in 2013, I worked for five years as executive director of a Boston-based family foundation with a lean staff doing international grants. I received an eye-opening education on the challenges facing U.S.-based grantmakers who want to support overseas NGOs.

About NGOsource U.S. foundations and other grantmakers provide more than US$5 billion annually to charities and NGOs outside the United States. NGOsource members make over US$2.2 billion in international grants annually. Over 50 influential U.S. grantmakers, including eight of the ten largest international givers such as Bill & Melinda Gates Foundation, Ford Foundation, Rockefeller Foundation, and William & Flora Hewlett Foundation, are all actively using NGOsource. NGOsource is a joint project of TechSoup Global and the Council on Foundations that launched in March 2013. NGOsource helps U.S. foundations and other grantmakers provide funds to non-U.S. NGOs through a process called “equivalency determination” or “ED.” NGOsource has grown rapidly, with the largest U.S. foundations joining as members — Bill & Melinda Gates Foundation, Ford Foundation, Rockefeller Foundation, William & Flora Hewlett Foundation, and many others. U.S. grantmakers can benefit from using NGOsource in many ways, through added convenience, local support, affordability, reduced risk, and more.


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Why Does a Foundation in the United States Need an “Equivalency Determination - ED”? ED is a process U.S.-based grantmakers can use to meet their tax compliance requirements when they make grants to non-U.S. NGOs. When NGOsource performs an ED, we carefully review information about a non-U.S. NGO and determine if it meets the same standards as a U.S. public charity. If it does, NGOsource issues a certificate for that NGO. Based on the ED certificate, the grantmaker can give funds to the NGO with fewer restrictions. What Is the Value of NGOsource to NGOs In Your Region? If your NGO receives — or is hoping to receive — funding from U.S. grantmakers, NGOsource can help you. NGOsource reduces repetitive paperwork, offers guidance from regional or local offices in your own language, lowers your grantmakers’ expenses, and can help everyone save time. A listing on NGOsource provides access to a network of leading U.S. foundations that are active international funders. The ED process involves your NGO providing information which NGOsource reviews. If your NGO meets the criteria for a U.S. public charity, NGOsource issues an ED certificate for you. The grantmaker can rely on that certificate to meet its tax compliance requirements. It doesn’t matter how many U.S. grantmakers you receive funding from. Once you are in our files and repository, you’ll save time and avoid paperwork for every ED afterward, as long as your grantmakers use NGOsource. With the paperwork out of the way, your grants and other funding can be sent to you faster too. The initial process can be completed in four to six weeks. After your NGO has done an ED one time with NGOsource, and if your ED has not yet expired, NGOsource can send it to other grantmakers in a day or so. That’s fast. Recertification can be done far more quickly because we already have most of your information. You’ll never need to start over again — just tell those grantmakers to get your ED from NGOsource. When your NGO has its ED on file with NGOsource, you can more easily obtain additional funding from other U.S. grantmakers in the future. Doing an ED with NGOsource adds credibility and means that all NGOsource foundations can quickly and easily make grants to your NGO. NGOs may want to tell their grantmakers about NGOsource, to help them get funding from U.S. philanthropists faster and easier. How exactly does NGOsource benefit an NGO?

• Better Access to Funding from U.S. Grantmakers: When an NGO has its ED on file with NGOsource, it can more easily obtain funding from other U.S. grantmakers in the future. Over 50 grantmakers are using NGOsource, including eight of the ten largest U.S. foundations who give internationally. NGOsource members make over US$2.2 billion in international grants annually.


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• Less Work, Less Paperwork: If an NGO is certified once by NGOsource, other U.S. grantmakers can receive ED certificates without more work on the part of the NGO. That means less paperwork for the NGO. NGOsource keeps all of the EDs it issues in a central repository. When a grantmaker requests an ED for an NGO that has already been certified, NGOsource can issue an ED certificate within one business day for a nominal fee. Once an ED certificate is issued for your NGO, you’ll never need to go through the long review process again. That means less paperwork, less repetition, and less hassle for your NGO.

• Regional and Local Assistance: NGOsource makes the process easier for NGOs

because they work with many of you: our TechSoup Global partners. You know the local language and customs, you understand the NGO’s situation, and you are better positioned to help them with the ED process (rather than someone else who is not in the region or is not a native speaker).

Why are so many leading U.S. foundations using NGOsource for their EDs?

• Centralized ED Repository: NGOsource keeps all of the ED certificates it issues in a central repository. When a grantmaker requests an ED for an NGO that has already been certified, NGOsource can issue an ED certificate within one business day for a nominal fee of US$250.

• Serving the Entire Philanthropic Sector: NGOsource was designed and launched with the support and active engagement of prominent leaders in philanthropy and international grantmaking.

• Lower Cost: It has traditionally cost U.S. grantmakers US$5000 to US$10,000 to

conduct an ED. With NGOsource, ED costs are reduced to US$250 for NGOs already in the repository, and between US$1,490 and US$1,760 for NGOs not yet certified by NGOsource. This drastic reduction in foundations’ compliance costs makes more funding available for grantees, and makes it possible for many more U.S. foundations to make international grants.

• Fast: The initial ED process can be completed in four to six weeks. After the NGO has gone through the process once, reissuing an active ED certificate can be done within one business day. Renewals can be done far more quickly than starting the process again from the beginning.

Point of Contact: Ken Tsunoda , TechSoup Global, General Manager, NGOsource Tel: +1.415.633.9328 / Mobile: +1.408.569.5356 Skype: ken.tsunoda / [email protected]


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Témoignage proposé par Cathy Maher

Partner Service Associate

www.globalgiving.org

GlobalGiving est une structure qui se développe à un rythme rapide aux Etats Unis mais aussi en Europe. Cathy Maher nous propose ici une description des principaux objectifs de GlobalGiving, ainsi que l’aide qu’ils peuvent apporter aux ONG n’ayant pas de point d’ancrage particulier aux US et souhaitant tester en quelque sorte leur capacité à attirer des financements de fondations américaines souhaitant confier leurs fonds directement à des structures abritées par GlobalGiving.

Cathy's favourite thing about her role on GlobalGiving's Partner Services Team is helping trustworthy organizations through the application process to become part of the GlobalGiving community. As a Partner Services Associate, Cathy gets to apply her vetting skills (acquired in her former life as a Government of Canada immigration analyst) and knowledge of the global nonprofit sector (picked up while studying international relations at Cornell University). Cathy grew up in Hong Kong and Toronto and firmly believes in keeping the 'u' in her spelling.

GlobalGiving's mission is to bring together money, information, and ideas to make philanthropy and development more democratic and effective. We believe that local solutions are often the best solutions to local problems so unlike more traditional funders, we are as committed to working with smaller grassroots organizations as we are with larger NGOs. Our primary tool is a crowdfunding platform that connects donors with projects from all around the world. We also work with corporate partners in support of their employee engagement, cause marketing, and grantmaking programs. Every organization that wishes to join GlobalGiving, either to use the crowdfunding platform or to participate a corporate partner program, must undergo an extensive due diligence process: only registered charitable organizations that can demonstrate social impact can fundraise on the GlobalGiving platform. Part of the process involves making a determination as to whether the organization is equivalent to a US 501(c)(3) public charity. We do this to satisfy US Internal Revenue Service requirements so that donations made to GlobalGiving projects can be tax deductible for US donors. The need to make an equivalency determination is a primary reason why the application to join the GlobalGiving platform asks for many documents, such as a government certificate of registration, a founding document, and financial statements, among others. If these documents are not originally in English, we also require English translations in order to do our analysis.


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We've found that it can be difficult for some organizations to provide these documents, especially organizations that are young and/or low-capacity. Surprisingly we've also found that very large and established organizations can struggle with providing these documents as well, often because the department completing the application needs to contact another department to obtain the organizational and financial information. In some cases, privacy concerns are a reason why organizations are hesitant to provide these documents, especially financial information. Translating these documents into English is also a common challenge. Even though we accept unofficial translations and encourage the use of Google Translate, the length and sometimes the format of these documents (such as image files that Google Translate cannot process) means that translation can be a manual and time-consuming process for the applicant. Language in general is a significant barrier for many organizations. For now, GlobalGiving is an English-language platform with primarily English-language staff. This means it can be particularly challenging to communicate and work with organizations that have limited English language capacity since they often struggle to understand the application requirements and the subsequent steps they need to take to become part of the GlobalGiving community. Despite these challenges, we are committed to working with local grassroots organizations as much as with larger organizations. As described in our Core Values www.globalgiving.org/aboutus/core-values GlobalGiving is Always Open. We believe in the power of great ideas and that these ideas can come from anyone, anywhere, at anytime. We are constantly thinking of ways to improve the application and due diligence experience for nonprofit organizations while still delivering the vetting standards that we promise to donors. Interested in getting your organization on GlobalGiving? Please visit: www.globalgiving.org/nonprofits To learn more about crowdfunding, GlobalGiving’s Crowdfundamentals guide will give you all the tools you need to plan, launch and execute a winning fundraising campaign: www.globalgiving.org/crowdfundamentals.


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Témoignagne propose par Maggi Alexander,

Partner, Center for Global Philanthropy

http://www.tpi.org/

Ce témoignage que nous propose Maggi Alexander, la responsable du Center for Global PHilanthropy au sein de la Philanthropic Initiative nous permet d’aborder le monde des conseillers aux philanthropes. The Philanthropic Initiative n’est pas un donor advised funds, mais son équipe conseille et aide les fondations américaines à penser leurs actions pour qu’elles soient plus efficaces, porteuses de plus d’impact. Elle évoque ici également l’action spécifique mise en œuvre depuis 2010 afin d’apporter un appui aux fondations américaines spécifiquement sur leurs programmes à l’international. Pour ceux qui recherchent des fonds aux Etats Unis, il me paraît important de considérer ces structures – très nombreuses – qui en même temps proposent également aux donateurs des idées de structures spécifiques pour l’affectation de leurs dons.

Maggi Alexander, Partner, Center for Global Philanthropy Maggi Alexander directs TPI’s Center for Global Philanthropy and in this role supports New England International Donors (NEID). An entrepreneurial leader, Maggi has spent over 25 years focused on improving the quality of life for low-income children, families, and communities in the United States and over 30 countries worldwide. She has extensive experience building partnerships and alliances that cut across traditional

divides and has worked in the corporate, philanthropic, nonprofit, and public sectors. Maggi’s experience in organizational development spans the early start-up process to achieving scale and sustainability; she is passionate about turning great ideas into reality. Maggi’s commitment to international development was ignited when she worked as a street educator providing direct services to working and street-based children in developing countries. In 1991, Maggi joined the International Youth Foundation (IYF) shortly after it was established. Today, IYF is among the world’s leading public foundations focused on investing in young people, with operations in more than 80 countries. Most recently, Maggi worked with the ImagineNations Group to provide rural young people and smallholder farmers with relevant education, training, and finance, fostering a new generation of Africans who are prosperous along the field-to-fork agriculture value chain. In 2006, Maggi founded and continues to serve as volunteer Director for Kids-Take-Action, a nonprofit aimed at inspiring service and social action among school-aged children. Over her career, Maggi has held several other senior leadership positions with national and international organizations, including the W.K. Kellogg Foundation, UNICEF, the Fetzer Institute, and the Charles Stewart Mott Foundation. Maggi has an MA from John’s Hopkins School for Advanced International Studies.


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The Philanthropic Initiative, Inc. (TPI) is a nonprofit advisory team that designs, carries out and evaluates philanthropic programs for individual donors, families, foundations, and corporations around the world. TPI's goal has been to help clients to invest in their own values, communities and societies for maximum impact. Since it was founded in 1989, we’ve directed more than one billion philanthropic dollars and influenced billions more on behalf of our clients. In 2010 TPI launched the Center for Global Philanthropy (CGP) to contribute to a broader understanding of philanthropy around the world and to help donors make cross-border grants and donations. The Center for Global Philanthropy provides services to donors and companies to help make international giving easier and more effective. We work with US-based donors that would like to give grants to non-profit organizations outside the United States and we also help donors based outside of the US to give grants and donations to organizations outside of their home country – this includes civil society organizations in the North America, Europe, Central and Latin America, Africa, the Middle East, and Asia. The CPG has a long history and extensive experience working with organizations worldwide. Our focus is on helping donors to make grants internationally. In many cases these are US-donors that would like to make grants to civil society organizations outside the US that do not have a 501.c3 status or equivalency determination. The CGP helps the donor to understand their options and to determine the best way for them to make these investments. In some cases, the CGP will recommend and assist the donor to undertake the due-diligence necessary for expenditure responsibility to meet the requirements of the US government, in other cases we may recommend the establishment of a charitable foundation or a “friends of entity” depending on the frequency, size, and number of overseas grants the donor is likely to make in any given year. Some of the types of services we offer donors to support their international giving includes:

- Equivalency determination and expenditure responsibility services; - Grantmaking due-diligence (services from creating the RFP to grant management a-z); - Establishing a foundation or “friends of” entity for international charitable purposes; - Hosting donor education travel philanthropy seminars in the US (for foreign donors)

and abroad - Donor education forums and peer networks on international grantmaking (see

www.neidonors.org) - Landscape “mapping” research - Identification and due-diligence on effective civil society and other partner

organizations - Strategy development through thoughtful research, program design, and diligent

management - Monitoring and evaluation – including case-studies and other research

TPI and its CGP also works with a wide range of clients in the United States and abroad on a range of social issues including education, health, issues affecting youth and families, hunger and nutrition, housing and homelessness, community and economic development, civic engagement, environmental issues and the arts. Generally, we will start by helping


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the client/donor with a landscape analysis and assessment of potential partners and existing services. TPI and the CGP operates with a “do no harm” perspective and we carry out extensive due-diligence to assure our donors that their philanthropic investments will have the positive social impact that they are intending. The starting point for our work is the client's goals and interests. We have learned that the impact of philanthropic giving is greatly increased if time and effort is invested in clarifying mission and goals, conducting research to learn about social issues, and formulating strategies to achieve the donor's goals. Our programmatic work includes research and analysis of social issues to understand root causes, best practices, effective models and promising approaches; design of creative philanthropic strategies that target specific needs and opportunities to make a difference; and implementation and evaluation of these strategies. Strategy, combined with the values and passionate concerns of donors, brings about giving that makes a difference. Strategic philanthropy can move donors toward a deeper understanding of the issues they care about and guide them through the demanding process of creating meaningful change. What we do

We help donors attain new levels of lasting philanthropic impact. Working across the continuum, we offer a comprehensive spectrum of capabilities – from strategy development through thoughtful program design, diligent management and comprehensive evaluation. Our approach is to create giving strategies based on the visions, values and the areas our donors and companies want to influence. We help donors to position their philanthropy to achieve deep social impact.

Read more stories of impact at http://www.tpi.org/who-we-serve

Design and launch of high-impact programs that turn ideas into action.

Creative approaches at the intersection of values, interests and social needs.

Select program support or full outsourcing of grant making.

Rigorous reflection to inform and improve strategy and practice.


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Advancing Strategic Philanthropy Twenty five years ago, TPI pioneered the field of strategic philanthropy advising. Today, we continue to commit ourselves to promoting and advancing both its principles and practices. We conduct cutting edge research, assemble diverse voices and train individuals, organizations and advisors in best practices. Through TPI's Center for Global Philanthropy, we partner with experts, government, and nonprofit leaders to build cultures and systems that embrace and support effective social investing. Our promotional work informs our advising working - to the benefit of our clients and the global philanthropic community. Learn more about our efforts to promote effective giving and improve the practice of philanthropy around the globe at www.tpi.org/about


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III- Collecter des Fonds aux Etats-Unis en passant par des intermédiaires

FRIENDS OF Friends of the Fondation de France An American Friends Fund at King Baudoin Foundation US

EXPERTS EN RECHERCHE DE FONDS Faircom

DONOR ADVISED FUNDS Introduction Charities Aid Foundation of America


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1. FRIENDS OF

Témoignage proposé par Friends of Fondation de France

Francis Charhon, Directeur Général de la Fondation de

France

http://foundationcenter.org/grantmaker/ffdf/ Francis CHARHON, Directeur Général de la Fondation de France, a sollicité ses équipes afin de nous proposer cette présentation de ce que propose la structure « Friends of Fondation de France » aux Etats-Unis. Il nous faut ici souligner que cette contribution a été la première à nous parvenir, avant fin 2014 !

Francis Charhon, Médecin Anesthésiste de formation. Après une carrière hospitalière, il rejoint Médecins Sans Frontières, dont il devient Président de 1980 à 1982, puis en assure la direction de 1982 à 1991. Il rejoint alors la Fondation de France, en tant que Directeur général, en 1992. Il est par ailleurs, Vice-Président de France générosités. Président du groupe Statut européen au Centre Européen des Fondations à Bruxelles. Président du Centre Français des Fonds et Fondations, depuis 2002. Membre du Conseil économique, social et environnemental, depuis 2010.

Membre du Conseil National du Développement et de la Solidarité Internationale, depuis 2014. COLLECTER DES FONDS AUX U.S.A. La Fondation de France, dont le rôle est d’encourager la philanthropie à travers la collecte de dons et leur redistribution, a mis à la disposition des mécènes américains, un outil leur permettant d’encourager des projets d’intérêt général en France. FRIENDS OF FONDATION DE FRANCE est 501(c)(3) public charity, structure de droit américain. Elle a été créée dans le but d’apporter un service aux donateurs américains qui veulent soutenir des projets d’intérêt général de toutes natures, pour toutes organisations, en France. Il ne s’agit donc pas d’un service à destination spécifique de la Fondation de France, mais pour tout organisme éligible qui en fait la demande. Lorsque l’on ne souhaite pas mettre en place une administration de gestion des fonds collectés, un suivi de projets, des relations avec l’administration fiscale, on peut recourir aux services de FRIENDS OF FONDATION DE FRANCE qui permet de collecter des dons aux U.S.A. en accordant aux donateurs la défiscalisation en vigueur dans ce pays, et qui s’occupe de toutes les démarches administratives. Les dons parviennent ensuite au récipiendaire via la Fondation de France, qui s’est assurée au préalable de son bon fonctionnement.


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A titre d’exemples, les organisations suivantes ont déjà utilisé FRIENDS OF FONDATION DE FRANCE :

- La Fondation pour l’Aide à la Recherche sur la Sclérose En Plaques (Fondation reconnue d’utilité publique)

- La Cité de l’Architecture et du Patrimoine (Etablissement public) - Solidarités nouvelles face au chômage (Association).

La liste complète est disponible sur le site www.friendsoffdf.org. Modalités de fonctionnement : FRIENDS OF FONDATION DE FRANCE ne recherche pas de donateurs aux U.S.A., mais lorsqu’un organisme français a un donateur potentiel aux U.S.A. et souhaite bénéficier des services de FRIENDS OF FONDATION DE FRANCE, il doit adresser un dossier à la Fondation de France, constitué des pièces suivantes : 1) Statuts de l’organisme et publication de la création au Journal officiel 2) Bilan, compte de résultat et rapport d’activités des deux derniers exercices 3) Liste des membres du Conseil d’administration 4) Présentation du projet à financer à travers une note synthétique d’une à deux pages, accompagnée du budget prévisionnel 5) Liste de donateurs potentiels avec leurs coordonnées, et montant global des dons attendus, ou dans le cas spécifique d’une campagne d’appel à générosité :

- Liste des Etats dans lesquels les résidents américains seront sollicités et nombre de donateurs potentiels par Etat

- Indication de la/les méthode(s) envisagée(s) pour l’appel à dons : e-mail, téléphone, courrier, dîner, etc. (NB : tout support écrit doit être préalablement revu par Friends of Fondation de France avant envoi).

- Indication de la/les personne(s) qui coordonne(nt) la campagne : employé(s) de votre organisme, volontaire(s), professionnel(s) américain(s), etc.

- Calendrier proposé pour la campagne 6) Un R.I.B Ce dossier complet doit être adressé à la Fondation de France, à l’attention de Laurence Teper, de préférence par e-mail ([email protected]), ou par voie postale : 40 Avenue Hoche, 75008 Paris. Après instruction de ce dossier, en cas d’avis favorable, la demande est présentée sans délai à FRIENDS OF FONDATION DE France qui statue dans les jours qui suivent. Si le dossier est accepté, dans la foulée, FRIENDS OF FONDATION DE FRANCE : - reçoit les dons de tous ceux qui veulent soutenir l’organisme concerné et leur adresse un reçu fiscal ; - reverse le produit de cette collecte à la Fondation de France, déduction faite des frais de gestion.


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Pour couvrir ses frais de gestion, FRIENDS OF FONDATION DE FRANCE prélève 5% sur chaque don reçu (à concurrence d’un maximum de 15 000 dollars par don). A réception des dons, la Fondation de France les reverse à l’organisme, déduction faite des frais de virement et de change. Enfin, dans un délai d’un an à compter de la date de versement des fonds, l’organisme porteur de projet doit faire parvenir à Laurence Teper un compte-rendu détaillé du projet soutenu justifiant auprès de FRIENDS OF FONDATION DE FRANCE de l’utilisation des fonds reçus. Pour tout renseignement complémentaire, vous pouvez consulter le site web de FRIENDS OF FONDATION DE FRANCE : www.friendsoffdf.org , le site web de la Fondation de France : www.fondationdefrance.org et/ou contacter Laurence Teper : [email protected].


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Témoignage proposé par Jean Paul Warmoes Executive Director

www.kbfus.org Jean Paul Warmoes, le directeur éxécutif de la King Baudouin Foundation United States, KBFUS, nous expose ici en détail ce que propose “American Friends Fund” qu’ils ont créé afin de faciliter la recherche de fonds aux US de structures n’ayant pas les moyens et/ou le temps et/ou l’expérience nécessaires pour monter une 501c3. J’ai rencontré Jean-Paul à plusieurs reprises, ce qui est très intéressant, c’est qu’ils ont une connaissance parfaite du paysage des fondations aux Etats Unis et qu’ils bénéficient d’un réseau de contacts très large aux Etats Unis mais de fait, en Europe également compte tenu du positionnement de la King Baudouin Foundation en Belgique. Jean Paul joined KBFUS’s parent foundation, the Brussels-based King Baudouin Foundation

(KBF), in 1994. He has served as KBF’s Director for International Relations since 2001 and as Secretary to the King Baudouin African Development Prize since 1996. Named after Belgium’s late head of state, KBF is a leading foundation in Europe and a founding partner of the European Foundation Center. Prior to joining KBF, Jean Paul was in charge of Business Development for Transtec, a consulting firm specialized in ODA projects. Previously, he worked in Tokyo (Bridgestone Corporation), Sydney (Bull HN Information Systems) and Paris (Embassy of Belgium to France).

Jean Paul served on the Global Philanthropy Committee of the Council on Foundations, the Steering Committee of ‘United States International Grantmaking’, the Planning Committee for the Council on Foundations’ ‘Philanthropy's Vision: A Leadership Summit’, the Intermediaries Taskforce of Philanthropy New York, and the Advisory Committee of the Conference Board’s Leadership Conference on Global Corporate Citizenship. He is a member of the Board of Directors of Universitas, a New York based tax exempt organization that was created on the eve of WWII to safeguard assets of the University of Brussels from being seized by the occupying powers. Jean Paul graduated from the University of Brussels (VUB) with a Master of Management Science (Solvay Business School) in 1988 and subsequently earned degrees in Foreign Trade and in International Comparative Management.


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- An ‘American Friends Fund’ at KBFUS -

A Cost-Effective and Tax-Efficient Solution for European and African Nonprofit Organizations Seeking to Raise Funds in the United States The King Baudouin Foundation United States (KBFUS) is an American public charity which facilitates thoughtful, effective giving to Europe and Africa. To meet the needs of European and African nonprofit organizations wanting to attract donations from U.S. donors, KBFUS has developed a flexible tool: the American friends fund. An American friends fund at KBFUS gives you a cost-effective structure – bearing your organization’s name – through which you can reach out to your alumni, friends and other donors in the U.S. and invite them to support your activities through contributions that are tax-deductible for U.S. tax purposes. Establishing an American friends fund will save you the time and trouble of creating and administering your own charitable organization in the U.S., while also saving you any expenses associated with accounting, auditing, legal counseling or filing annual tax returns. KBFUS handles the back office operations, including gift administration, tax receipts and donor support. Every month you will receive an overview of contributions, along with full donor contact information, giving you the tools necessary for donor cultivation. KBFUS currently manages about 140 American friends funds. Among our partners in France, you will find organizations such as Apprentis d'Auteuil, Château de Chambord, Château de Vaux le Vicomte, EDHEC, Fondation Gustave Roussy, Institut Imagine, Institut Curie, Les petits frères des Pauvres, and SOS SAHEL. A more in-depth presentation on American friends funds at KBFUS is attached. For more information, you may wish to contact: Jean Paul Warmoes Executive Director of the King Baudouin Foundation United States (KBFUS) 10 Rockefeller Plaza, 16th Floor, New York, NY 10020 Phone (212) 713-7662, fax (212) 713-7665, e-mail [email protected], website www.kbfus.org


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A Cost-Effective and Tax-Efficient Solution

for European and African Nonprofit Organizations Seeking to Raise Funds in the United States One of the objectives of the King Baudouin Foundation United States (KBFUS) is to facilitate cross-border philanthropy, enabling U.S.-based donors to support nonprofit organizations in Europe and Africa through contributions that are tax-deductible for United States tax purposes. To assist European and African nonprofit organizations in their efforts to raise funds in the United States, KBFUS developed an exciting new tool: An ‘American Friends Fund’. An American Friends Fund at KBFUS provides your organization with a tax-efficient structure to reach out to U.S.-based donors. An American Friends Fund will save you the time and trouble of creating and administering your own charitable organization in the United States. It is also an extremely cost-effective alternative, as you will not incur expenses associated with accounting, legal support or tax returns. There is a low one-time fee to set up an American Friends Fund. As KBFUS’ management fee is calculated as a percentage of total contributions received within a calendar year, there are no fixed charges. An American Friends Fund enables your organization to reach out to its alumni, friends and other U.S. contacts with a tool that bears its name, and invite them to support its activities through contributions that are tax-deductible for U.S. tax purposes. KBFUS takes care of all back office operations, such as gift administration and donor support, and provides you with monthly overviews of contributions received. KBFUS is a U.S. 501(c)(3) public charity associated with the King Baudouin Foundation (Belgium), a founding member of the European Foundation Center. Each year, KBFUS also invites European universities and cultural institutions to New York for a four-day study visit entitled ‘Factors Critical to Success in Fundraising and Development - The American Model’. A list of European and African nonprofit organizations that we already partner with is available on our website www.kbfus.org.


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A Cost-Effective and Tax-Efficient Solution

for European and African Nonprofit Organizations Seeking to Raise Funds in the United States

Content A. Setting up your American Friends Fund I. Establishment II. Solicitation of Contributions III. Reporting IV. Fees B. Making Distributions from your American Friends Fund I. The Process II. Length of the Process III. Minimum Amount for Distributions Attachment 1, Model Text for Fundraising Materials and Example of a Gift Form Attachment 2, American Friends Funds at KBFUS, Due Diligence Questionnaire


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A. SETTING UP YOUR AMERICAN FRIENDS FUND I. Establishment The first step to open an American Friends Fund at KBFUS is to complete and submit the Pre-Approval Questionnaire (see Attachment 1), giving KBFUS basic information about your charitable organization’s mission, administration, programs, funding sources, governance and leadership. Based on this information, KBFUS will determine if your organization is the equivalent of a charity, within the meaning of Section 501(c)(3) of the United States Internal Revenue Code, and if your organization’s activities are consistent with KBFUS guidelines and charitable purposes. Once your application has been approved, KBFUS will invite you to enter into an agreement establishing your organization’s American Friends Fund at KBFUS. (Standard agreement available upon request) II. Solicitation of Contributions Once its American Friends Fund is set up, your organization can inform its donors and potential donors based in the United States that they can support either the organization’s general advancement or one of its specific initiatives through a contribution to the organization’s American Friends Fund at KBFUS (see Model Text for Fundraising Materials in Attachment 2 – Please note that your fundraising materials targeting U.S. donors must be reviewed by KBFUS in advance of publication). KBFUS can accept contributions in cash (by check, money order, wire transfer, or online by credit card) or in appreciated property, such as stocks, bonds, mutual funds or real estate. In some circumstances we can accept donations of collections or works of art. KBFUS can also accept bequests for inclusion in a Fund. Because KBFUS is a 501(c)(3) public charity, donors may claim the maximum tax benefits allowed by U.S. tax law for their contributions. KBFUS will send to each donor contributing $250 or more an acknowledgement of his/her donation, as requested by U.S. tax law. Donors will be advised to keep this acknowledgement as their receipt for gift substantiation purposes. The acknowledgement will confirm that no goods or services were provided in return for the contribution (except in those rare instances where goods or services are provided in return for the contribution). III. Reporting Every six months, or whenever additional deposits of at least $25,000 are made, KBFUS will send you an overview of all contributions made to your organization’s American Friends Fund. You may also obtain an interim report at any time, upon simple request. The overview will include a statement reflecting the current value of the Fund’s assets, as well as detailed contact information for each donor, except for contributions received with the explicit request from the donor that his/her gift remain anonymous.


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IV. Fees There is a one time ‘set up’ fee of $1,500 to open an American Friends Fund at KBFUS. In addition, KBFUS charges a management fee on the cumulative total of funds contributed to a Fund within a calendar year, as follows:

- 5% on the first $100,000 of aggregate contributions deposited in the Fund; - 2% of aggregate contributions deposited in the Fund between $100,001 and

$400,000; and - 1% of aggregate contributions deposited in the Fund between $400,001 and

$700,000; and - 0.5% of aggregate contributions deposited in the Fund in excess of $700,000.

An additional 3% credit card processing fee applies to all contributions received by credit card through KBFUS’ Online Giving Center. B. MAKING DISTRIBUTIONS FROM YOUR AMERICAN FRIENDS FUND I. The Process 1. Grant Recommendation: You may make recommendations for a grant distribution from your organization’s American Friends Fund at any time. Recommendations should specify the recommended grant amount and include a detailed description and budget for the project to be funded with the proposed grant. 2. Review of the Recommendation & Approval of the Grant: KBFUS will investigate your recommendation to assure that the recommended use of the funds is consistent with KBFUS’ exempt status under the U.S. tax laws and with its guidelines and charitable purposes. In order for donors to obtain the maximum tax benefits allowed by U.S. tax law for their contribution, KBFUS will not be bound by your recommendation, but it will give it serious consideration. Once approved by our Board of Directors, a grant agreement is signed, specifying the purpose for which the funds will be used and requiring a brief report after a one year period. 3. Transfer of the Grant Amount: Upon receipt of the signed agreement, KBFUS proceeds with the payment via wire transfer. II. Length of the Process The grants administration process usually takes a couple of weeks.

III. Minimum Amount for Distributions There is a $5,000 minimum for grants from an American Friends Fund.


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Attachment 1 Part 1

Model text for fundraising materials targeting U.S.-based donors:

U.S.-based donors can support our activities in a tax-efficient way through a contribution to the “fund name” at the King Baudouin Foundation United States (KBFUS). Because KBFUS is a public charity, within the meaning of Sections 501(c)(3) and 509(a)(1) of the IRC, donors may claim the maximum tax benefits allowed by U.S. tax law for their contributions. If you wish to support us, here is how to proceed: - Gifts by check: Write your check to KBFUS, write “fund name” in the memo section of the

check, and send it to KBFUS, 10 Rockefeller Plaza, 16th Floor, New York, NY 10020. - Gifts by credit card: Go to www.kbfus.org, click on the ‘Donate Now’ button and select

“fund name” under ‘Giving Option 1: Nonprofit Partners Overseas’. - Gifts by wire transfer or to contribute other types of property: Contact KBFUS at: email

[email protected], phone (212) 713 7660.

___________________________________________________________________________________

Part 2 Example of a gift form to be completed by the donor, and returned to KBFUS together

with their check:

[X] YES! I want to support “organization name” through a contribution to the “fund name” Fund at the King Baudouin Foundation United States (KBFUS). Enclosed is my check for: [ ] $50 [ ] $250 [ ] $500 [ ] $1,000 [ ] Other $__________ I understand that the Board of Directors of KBFUS is not bound by my designating my contribution for deposit in the “fund name” Fund and retains the ultimate control over the use of my contribution. I also understand that this is necessary in order for me to obtain the maximum tax benefits allowed by U.S. tax law for my contribution. [ ] I wish my gift to remain anonymous. Do not advise the beneficiary of my contact information. My name: _____________________________ Phone: _____________________________ Signature: _____________________________ Email: _____________________________


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2. EXPERTS EN RECHERCHE DE FONDS : CE QUE PROPOSE FAIRCOM

Témoignage proposé par Corinne Servily

Présidente

http://www.faircomny.com/ Contrairement à des structures comme celles que nous avons évoquées dans les pages précédentes, Faircom peut prendre en charge la totalité des aspects liés à la recherche de fonds, des conseils préliminaires à la mise à disposition de leurs contacts dans des milieux très différents, jusqu’à un accompagnement de mise en place de la stratégie proposée sur plusieurs années. Corinne Servily, la présidente du bureau de New York, nous présente dans cet article Faircom, leurs méthodes de travail, en l’illustrant de plusieurs exemples.

Fondatrice de l’agence New-Yorkaise, elle conseille les associations caritatives avec enthousiasme et passion depuis plus de 25 ans. Son expérience internationale lui permet aujourd’hui de proposer une expertise rare et concrète du marketing direct dédié à la collecte de fonds. Elle a travaillé notamment pour la Fédération Française de Cardiologie, Central Park Conservancy, Action Contre la Faim, l’Abbaye de Sept-Fons, Handicap International, le Jour du Seigneur, Human Rights Watch, la Grameen

Foundation, Médecins Sans Frontières, l’Institut Curie. En 2013, sur le classement mondial de Michael Chatman des meilleurs consultants fundraising, Corinne a été classée 6ème. Corinne a également été oratrice dans plusieurs conférences mondiales traitant du fundraising, comme la conférence de la King Baudoin Foundation à New York, la conférence des Fundraisers Suisses à Genève et à l’Association Francaise des Fundraisers à Paris. A propos de Faircom Depuis plus de 20 ans, Faircom New York assiste et conseille les associations européennes et internationales souhaitant se positionner et lever des fonds sur le marché philanthropique américain. Faircom New York les aide à établir une présence solide et durable sur laquelle les associations peuvent appuyer leur levée de fonds. Depuis 1993, nous avons aidé de nombreuses organisations – incluant l’Institut Pasteur, l’Institut Marie Curie, l’Institut des Hautes Etudes Mathématiques, Médecins sans Frontières, Handicap International, Action contre la Faim, la Fondation Nelson Mandela, l’Institut Van Gogh et bien d’autres – à établir leurs programmes de collecte de fonds, à créer et affiner leurs messages, à accroître le nombre de leurs donateurs et à augmenter l’échelle et la profitabilité de leurs efforts de collecte de fonds.


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Nous parlons le langage des associations à but non lucratif. L’expérience variée que nous avons acquise en créant, gérant, livrant et analysant des campagnes de collectes de fonds, des stratégies d’organisation et de communication pour des associations caritatives locales, nationales et internationales est l’une de nos plus grandes forces. Nous sommes pleinement conscients des impératifs liés aux fédérations internationales : le respect des budgets, la prise en compte des politiques et stratégies de communication ainsi que l’importance de créer un pont entre les différences culturelles. Parce que chaque organisation est différente, nous gardons une grande flexibilité pour les aider à se développer et pour répondre à leurs besoins au-delà de ce qu’une agence de marketing classique proposerait. Ce niveau d’implication, le soutien que nous offrons pour construire les fondations d’une organisation «non profit» sur le sol américain, nous différencient de la concurrence. Nous sommes une agence à l’écoute de nos clients et toujours disponible. Partenaire de votre collecte de fonds, notre bureau est virtuellement une extension du vôtre. Méthode Une des premières étapes pour pouvoir recevoir des dons, légitimer et asseoir leur présence aux Etats-Unis est la constitution d’un statut légal qui permet aux donateurs de bénéficier de déductions fiscales. Pendant que nous travaillons sur l’étude de faisabilité, le positionnement de l’association, la recherche de donateurs potentiels et la stratégie de collecte, nous conseillons aux non-profits de constituer leurs statuts légaux via une Fondation ombrelle telle que la Fondation du Roi Baudouin ou la Fondation de France. Cette démarche a l’avantage d’être simple, rapide et peu coûteuse. Contre un pourcentage perçu sur les dons, ces Fondations ombrelles permettent aux associations de créer un « American Fund » ou un « Friends of », de bénéficier de déductions fiscales et d’une équipe s’occupant d’émettre des reçus fiscaux. Nous accompagnons par exemple « Nelson Mandela Foundation American Fund », « American Fund of little brothers of the Poor» (les petits frères des Pauvres). Une fois que nous avons pu confirmer le potentiel de collecte des associations via une Fondation ombrelle, nous allons pour certaines, leur conseiller de constituer un 501 C (3). Nous ne conseillons cette démarche que dans un second temps car elle est longue (peut prendre entre 12 et 18 mois) et coûteuse car il faut compter environ $15,000 de frais d’avocat. Elle est aussi plus contraignante car l’association devra créer un board et s’occuper de la gestion des dons et des reçus fiscaux. Toutefois, pour certaines pratiques de collecte comme le marketing direct, il est essentiel d’avoir un 501 C (3). En effet lorsque nous envoyons un courrier adressé avec un bon de retour que le donateur rempli pour faire son don, nous ne pouvons pas demander que l’ordre de payement (chèque ou virement) et que l’adresse retour soit celle de la Fondation ombrelle car cela porte trop à confusion pour le donateur potentiel.


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La différence entre un Fondation ombrelle et un 501 C (3), dépend donc des objectifs et modes de collectes des associations. Si nous prenons l’exemple de quelques associations que nous accompagnons :

- Nelson Mandela Foundation American Fund : association sud-africaine qui a constitué son statut légal via la Fondation du Roi Baudouin. Nous les accompagnons dans leur stratégie de collecte Grands Donateurs aux Etats-Unis. Nous ne leur conseillons pas de créer un 501 C (3) car nous organisons essentiellement des évènements, des rencontres avec des Grands Donateurs et des Fondations. Le 501 C (3) n’augmenteraient pas leur collecte.

- American Friends of little brothers of the Poor (les petits frères des Pauvres) :

association française présente aux Etats-Unis depuis 1956 avec 8 chapters et qui a constitué son statut légal via la Fondation du Roi Baudouin pour soutenir ces chapters. Nous leur conseillons de créer un 501 C (3) car en plus de l’organisation de galas, nous leur conseillons de cibler les personnes soutenant localement les chapters via du marketing direct. Pour collecter auprès de Fondations, s’agissant d’actions de proximité, nous avons besoin d’un statut légal national pour augmenter leur collecte.

- Friends of IHES (Institut des Hautes Etudes Scientifiques) : association française

ayant une présence légale aux Etats-Unis avec un board et un 501 C (3). Grâce à ce statut, l’IHES utilise tous les modes de collecte sur le sol américain (galas, bourses de soutiens, marketing direct…).


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3. LES DONOR ADVISED FUNDS

Introduction Pour resituer les Donor Advised Funds dans leur contexte, notamment en terme de masse financière gérée, nous vous proposons en guise d’introduction ce texte publié par Alex Daniels, spécialiste de ces questions pour le Chronicle of Philanthropy. Il a proposé cet article après la publication du dernier rapport du National Philanthropic : http://www.nptrust.org/daf-report/

Gifts to Donor-Advised Funds Grew 23% in 2013, Says Study A flood of contributions to donor-advised funds pushed assets of the charitable accounts to a new high of nearly $54-billion in 2013, according to a new report. But the study also found that those accounts distributed a slightly smaller share of assets to charities last year than in 2012. Donors poured more than $17-billion into the accounts, an increase of 23 percent, according to the report. The surge of contributions, along with healthy growth in the stock market, helped assets in the accounts grow by nearly 20 percent. That surge is part of a trend, as donor-advised funds have grown increasingly popular with wealthy donors. Contributions to donor-advised funds reflected about 5.2 percent of all charitable gifts, according to the study, edging up from the 4.3 percent that the trust reported in last year’s survey.

Charitable Deductions

Using a donor-advised fund, a contributor can take an immediate charitable tax deduction but is not given a deadline to parcel money out of the funds into charities. A big reason donors increased their giving is that a late 2012 debate over tax policy made some people worry that the charitable deduction could be limited in the future, according to Eileen Heisman, president of the National Philanthropic Trust, which manages donor-advised funds and commissioned the new study of 1,012 organizations. Lawmakers did not limit deductions, but Ms. Heisman says many donors feared they would lose an incentive to give and rushed to make donations. For fund managers operating on a calendar year, those added gifts were captured in 2012. For organizations and funds operating on a fiscal year, the surge in gifts occurred in 2013.

Gadgets Fuel Growth

In 2013, there were 217,367 donor-advised funds, an increase of 5.7 percent over the previous year. During that time, the number of private foundations totaled 84,350, an increase of 7.3 percent, according to the Foundation Center. Although donor-advised fund assets are dwarfed by the amount of money controlled by foundations, the wealth of the advised funds is growing at a quicker clip. Last year, foundation assets grew 5.7 percent, to $615-billion. The growth of donor-advised funds hasn’t just been helped by the tax debate and the robust stock market, according to Ms. Heisman.


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The increase in contributions was especially steep at funds managed by national charities and commercial organizations, including those affiliated with financial-industry giants like Schwab and Fidelity. Their marketing efforts, attention in the press, and the ease of starting a fund online—aided by, for instance, a widget called DAF Direct—has also attracted donors. "Americans like tools and gadgets that make their lives easier," she says. "Donor-advised funds are an extension of that. They’re the iPhone of the philanthropic world."

Share of Dollars Donated

The report found that the share of money donors channeled to charity from donor-advised funds dropped from 22.5 percent to 21.5 percent. Critics of donor-advised funds, like Mr. Cantor, say that foundations typically hew to the 5-percent distribution requirement, but the donor-advised-fund payout rate does not accurately reflect funds that sit dormant. While many account holders use their funds as temporary holding tanks before donating to what Mr. Cantor calls a "genuine" charity within 18 months, those people inflate the overall payout rate, he says.

More Growth Predicted

While it will be hard to repeat this year’s growth, especially since the charitable deduction does not appear to be in jeopardy right now, Ms. Heisman is confident contributions to donor-advised funds will grow "in the double-digits" this year, barring a large market slump or late-year economic troubles. She said the fact that contributions to community foundations grew by nearly 10 percent in 2013, even though 2012's tally included some unusually big donations—gifts that year included one of more than a half-billion dollars to the Silicon Valley Community Foundation from Facebook co-founder Mark Zuckerberg and an anonymous gift to the Greater Kansas City Community Foundation— was a sign that donor-advised funds have broader appeal. The report also found:

• The average size of a donor-advised account grew 13.4 percent, to $247,217. • Total contributions to funds managed by national charities, including those tied to

investment firms, soared to $8.7-billion, an increase of 32.7 percent. • After a year of decline, grants from charities managed by financial institutions and

other national funds increased 21.8 percent, to top $4-billion. • Payout rates at community foundations decreased from 17.1 percent in 2012 to 15.5

percent in 2013.


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Illustration concrète proposée par la Charities American Foundation

Témoignage proposé par John Holm

Senior Director of Business Development

http://www.cafamerica.org/

John Holm nous propose dans cet article la vision de Charities Aid Foundation of America, “donor advised fund”, comme il en existe de plus en plus aux Etats-Unis. Aux côtés des “advisors”, comme Arabella par exemple, ces organismes proposent aux fondations toute une série de services, que John détaille ci-dessous, permettant par exemple aux fondations de poursuivre leurs objectifs sans forcément alourdir leurs ressources humaines, puisque les donors advised funds effectuent les démarches à leur place. Dans une deuxième partie, John nous livre des exemples précis répondant à des questions très concrètes, comme celle par exemple “Solliciter des dons déductibles d'impôts aux États-Unis: dois-je avoir un siège américain?” Il expose également en détails les procédures pour obtenir la fameuse “501c3”. Pour des structures françaises ou locales qui souhaiteraient s’implanter aux US, les donor advised funds sont donc des acteurs à considérer, ne serait-ce que pour se faire connaître auprès d’eux et intégrer leurs réseaux. John Holm is the Senior Director of Business Development at CAF America, a global

grantmaking and advisory organization counseling clients in making strategic, effective and tax-advantaged grants both internationally and domestically. He has over 15+ years’ experience as both a senior executive and consultant in Hungary, Romania, the Balkans, and North America advising companies, nonprofits and foundations. Specializing in cross-sector engagement and shared value creation in emerging markets, John led the successful market and expansion of Subway Restaurants in Hungary while advising both IKEA and Starbucks on their respective market entries into Central & Eastern Europe and the

Balkans (Serbia, Croatia, and Slovenia). Additionally, John led and managed Libri’s successful market entry into Romania on the core values of transparency and community development, creating tangible impact for both the community and bottom line. John is the co-author and lecturer of the Shared Value Action Learning Project for Maastricht School of Management Romania and The Netherlands respectively and served as a U.S. Peace Corps Volunteer in Romania. John received an MBA with Distinction from Central European University in Budapest and is also a certified Shared Value consultant.


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Who is Charities Aid Foundation of America?

For over 20 years, CAF America has made international giving a reality for corporations, foundations, and philanthropic individuals. CAF America serves its donors by facilitating the global grantmaking process and eliminating the administrative burden that can often accompany international giving. With global philanthropy on the rise, more and more donors are seeking the advice of experts to navigate the intricacies of domestic tax policy. CAF America's industry leading expertise provides donors with peace of mind and confidence knowing that both international and domestic gifts are both impactful and made strategically. Whether you wish to support organizations providing aid in developing countries or seek to channel funds toward disaster relief efforts worldwide, CAF America can bring your philanthropic vision to fruition while preserving the tax advantages of your gift. In the last 10 years alone, CAF America and its subsidiary – the CAF America Donor Fund – have helped donors make over $300 million in gifts in over 90 countries. CAF America's Wide Range of Services CAF America offers services that are tailored to fit any donor's vision. Whether you are an individual philanthropist, a corporation, a community foundation, or an international charity, CAFA offers philanthropic solutions for your vision and your budget. Individuals and Families Individual and family donors may choose to make an individual gift to a charitable organization of their choice or set up a fund to establish an ongoing giving program. Through CAFA's Donor Advised Gift program, donors are able to make single gifts on a regular schedule or as desired. Donors can make tax advantaged single contributions to CAFA and may recommend their grant be made to the charitable organization of their choice. In the gift-making process, donors are provided with advisement based on CAFA's due diligence and vetting. It is a great way for a donor to begin to establish relationships with foreign charities. If an individual donor is interested in building a longer lasting relationship with an organization, CAFA's Donor Advised Fund is the most cost effective philanthropic solution. The Donor Advised Fund is designed to support ongoing charitable giving programs, which require fund management services, including activity statements and individualized online account access. The Donor Advised Fund also provides an opportunity for multiple donors to pool gifts for a common cause without the associated costs of establishing a foundation. The Donor Advised Fund can be established on the same day that an eligible contribution is made, a relative instance in comparison to the months it may take for a foundation to receive tax-exempt status from the US Internal Revenue Service.


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Corporations Similar to the services that CAFA provides to individual donors, our corporate advisory services can seamlessly take a company from initial strategy development to on the ground implementation and achieve your company's philanthropic vision. CAF America offers corporations the choice of making Donor Advised Gifts, establishing a Donor Advised Fund, or the unique option of a Matching Donor Advised Fund. Matched giving programs enable a company to support a large number of causes, while at the same time strengthening its corporate image among its employees and the broader public. CAFA's Matching Donor Advised Fund empowers a company's employees to invest in causes that meet their individual philanthropic visions with the confidence of full support from their employer. From a Matching Donor Advised Fund, CAFA can make grants to match your employees' gifts to organizations all over the world while providing you with assurance that such organizations have been vetted and funds are used for their intended purpose. This service is an excellent and cost-effective way for corporations of any size to have a positive impact in the global community. International Charitable Organizations If you are a charitable organization located outside of the United States and are looking for a way to increase support from American donors, the CAF America Friends Fund may present the most cost-effective solution. Establishing a Friends Fund through CAF America is significantly simpler and less expensive than registering a separate public charity in the United States. The Friends Fund allows your organization to receive gifts from American donors without the burden of managing a board or staff, US government registration, governance, tax, or audit requirements. In order to qualify, CAF America’s trusted experts must vet your organization for eligibility. The process requires submission of both financial and governance documents in order to make what is referred to as an Equivalency Determination. If CAF America finds your organization to be eligible for an ED, you may receive grants at any time through CAFA and need not apply for eligibility for each grant received. Equivalency Determination and Expenditure Responsibility There is not one right way to make grants to charitable organizations outside the United States, but CAF America's expertise is there to help you determine which of several available tools is most appropriate for your situation. In the context of ER, there are three different phases of due diligence to be tackled before a foreign charitable organization can receive tax advantaged gifts from American donors. In the first phase, a decision must be reached as to whether the grantee has provided assurance that the gift will be used for its intended charitable purpose. CAF America's expertise can be a major ally to an organization during this phase, since one of the primary factors the IRS weighs during this process is the relationship history of the grantor and grantee. CAFA's list of thousands of pre-vetted organizations for whom due diligence has already been performed lays the groundwork for a favorable ruling. Secondly, the complex nature of the restrictions that the IRS has placed on foreign charitable organizations applying for ER can place quite a burden on already overworked employees and volunteers. Partnering with CAFA puts over 20 years of experience at your fingertips when attempting to put together a successful application.


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With a 20% tax penalty on gifts reliant upon incomplete ER applications, the Expenditure Responsibility process is one that is most cost-effective when performed by experts. Lastly, the final phase of due diligence involves an analysis of the expenditure report, correcting any inconsistencies, and providing annual assurance reports to the IRS moving forward. Expenditure Responsibility may be the best option for your organization when planning to increase gifts from American donors, but it is important to understand the nuanced nature of the application process. Equivalency determination is the method by which we collect detailed information on a foreign charitable organization in order to make a “good faith determination” as to whether or not it is the equivalent of a United States public charity described in sections 501(c)(3) and 509(a) of the Internal Revenue Code. IRS Revenue Procedure 92-94 provides a specific procedure for making this determination, including a list detailing information that must be obtained from the foreign charitable organizations. Recent proposed changes in American tax law have expanded the category of individuals who may provide written advice to assist U.S. charities in making “good faith determinations” about whether or not a foreign charity is equivalent to a Code section 501(c)(3) organization. Pursuant to the proposed changes grantmakers have the opportunity to rely on the written advice of broader range of qualified tax professionals, including certified public accountants and enrolled agents. Donors working with CAF America now have the opportunity to utilize Equivalency Determination with reduced fees for the service. As the leader in global giving, CAF America has become the first organization in the field to include these new proposed changes in our existing grantmaking suite. Our process is changing to fit the proposed changes, and we’re passing on the savings made possible by the proposed regulations to the valuable donors with whom we work. The decision as to which service works better for you or your organization is a unique one. CAF America's knowledgeable professionals are well equipped to guide you through the complexities of each process and help you determine if ER, ED, or some combination of both best suits your needs. Importance in International Giving As a member of the Global Alliance of Charities Aid Foundation (UK), CAF America has the unique ability to connect donors with local issues and the foreign charitable organizations and NGOs on the ground that address them. Access to CAF's trusted expertise via 10 regional offices makes thorough and timely support available no matter where or when you need it. As the bridge between foreign charitable organizations and US grantmakers, CAF America is helping donors change the world for the better. With the ability to provide expert analysis and advice in addition to secure grantmaking, CAF America is a leader in both domestic and international philanthropy. Soliciting Tax Deductible Donations in the U.S.: Do I Need to Have an American

Headquarters?

In 2005 philanthropic contributions by individual donors reached an all time high, topping out at 2.4% of disposable income. In the subsequent decade we have seen that number fluctuate due mostly to economic hardship and general financial volatility worldwide.


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However, despite the fact that many non-profit organizations incorporated in the U.S. have been negatively affected by this fluctuation in their own country, global charitable organizations have enjoyed a rapid increase in giving from Americans over the last decade. According to Dr. Una Osili, Director of Research at the Center on Philanthropy at Indiana University, American contributions abroad have grown steadily thanks to technological advancements that have led to a more comprehensive awareness of international charitable causes.18 For any global charitable organization looking to benefit from this positive trend, the first step in attracting greater support from American individuals and corporations should be providing donors with the same tax deductions offered by charities based in the U.S. In this article we will explore two of the options available to global charities when seeking to provide such tax benefits to their American donors, comparing the costs associated with filing for recognition as a tax exempt 501(c)(3) corporation to the alternative of setting up a Friends Fund with CAF America. Procedure for American Registration and 501(c)(3) Exemption For a charitable organization headquartered outside the U.S., one surefire way to ensure that American donors enjoy tax deductions for their gifts is to register with the Internal Revenue Service (IRS) as a tax exempt 501(c)(3) corporation. Many charities attain this goal by incorporating a “Friends of” organization to act as the American arm of their organization. “Friends of” charities are required by U.S. law to operate independently of the global organizations they complement, and therefore must meet the lofty standards of the Internal Revenue Code in order to enjoy the benefits of non-profit status. Section 501(c)(3) of the Internal Revenue Code (hereinafter, “the Code”) states that in order to qualify for tax exemption (and offer tax deductions to donors), an organization must be a corporation, trust, or association of the following type: charitable, educational, religious, scientific, literary, fostering national or international sports competition, preventing cruelty to children or animals, and testing for public safety.19 Even if your organization falls into one of those categories, however, the process of obtaining a 501(c)(3) tax exemption can be a long and tedious one. Let's go through it together. Prior to beginning the application process for tax exempt status, your organization must first register its presence in a U.S. jurisdiction. Incorporation is slightly different in each U.S. state, but generally requires a legal business name, filing financial documents with the locality's corporate filing office, and creating by-laws that provide guidelines as to how this branch of your organization will be run and managed. The cost of filing “Articles of Incorporation,” as these documents are called, varies from locality to locality, but is usually about $120. As part of this filing, you will also need to appoint and maintain a board of directors, whose job it will be to put the by-laws into motion.

18 http://www.philanthropy.iupui.edu/news/article/has-americas-charitable-giving-climbed-out-of-its-great-recession-fueled-trough 19 http://www.irs.gov/pub/irs-pdf/p4220.pdf


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After incorporating and learning whether or not your organization serves the proper purpose according to the Code, the next step entails filing and submitting Form 1023 – the application for tax exempt status. In order to file Form 1023, your organization must first obtain an Employer Identification Number, or EIN. This number registers your organization with the IRS and acts as your account number in all future filings and transactions. This number is provided by the IRS once you have filed form SS-4. The SS-4 form, found here, asks an organization to provide general information about conception, construction, and purpose. With the EIN in hand, we can return to Form 1023. This form asks for elaboration on the information provided in SS-4. It is beyond the scope of this article to provide a step-by-step tutorial on how to fill out Form 1023, but we can take a look at several sections that present the largest obstacles to global charitable organizations:

• Section IV: Mission narrative – past/present activities and future goals • Section VIII: Specific activities – i.e. what you do, how you fundraise, and

where you operate • Section XI: User fees20

Section IV of Form 1023 is your organization's opportunity to tell its story to the IRS. Since this section will attempt to describe the who, what, when, where, and how of your mission, it is paramount to “present your case” as to why your organization should enjoy tax exempt status. Good will and favorable press are not enough. The strength of the application will rest upon your ability to argue your organization's eligibility based on the previous rulings of the IRS. For an organization unfamiliar with American tax law, this will often require enlisting the services of an American tax solicitor familiar with the Code and IRS precedent. Section IV has the ability to make or break the entire application, therefore outside expertise will almost certainly be necessary and is likely to come at a significant cost. Section VIII, while not possessing the same gravity as Section IV, can also present obstacles to organizations based outside the U.S. Section VIII, specifically line 12a, asks whether your organization operates outside the U.S. and if funds will be distributed outside the U.S. Over the last decade, the IRS has become increasingly selective in regard to allowing 501(c)(3) corporations to send money outside of the U.S., so your specific answer to this question could be a strong determining factor in your application status. For that reason, Section VIII may also require retaining the services of a U.S. tax solicitor. Finally, Section IX lists the application fees. Currently, an organization that reports more than $12,000 annually in revenue pays over $1,000 to file Form 1023. Given the financial barrier to entry and general uncertainty surrounding the achievement of tax exempt, non-profit status, many charities seeking access to American donors choose instead to partner with organizations like the Charities Aid Foundation to meet their fundraising goals. In 2010, the London Stock Exchange Group formed a charitable trust known as the LSEG Foundation to focus on promoting selective initiatives in communities in which it operates. The Foundation provides support for programs that help young and disadvantaged people meet their full potential and acquire entrepreneurial skills. Recently

20 http://www.irs.gov/pub/irs-pdf/i1023.pdf


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the Foundation, in an effort the reduce costs associated with meeting donor goals in the U.S., enlisted CAF's services to become the sole conduit for LSEG's charitable giving. Working with CAF relieved the LSEG Foundation of its burden to maintain a board for a separate public charity in the US, while preserving its ability to offer tax deductions to American donors. The CAF America Friends Fund provides any eligible charitable organization based outside the U.S. with the opportunity to access the American donor base without having to absorb the costs associated with incorporating and maintaing an American office. The CAF America Friends Fund The CAF America Friends Fund provides charitable organizations with a simpler, more cost-effective alternative to incorporating as a 501(c)(3) when seeking to ensure tax deductions for their American donors. The process of incorporation is daunting and can often present significant financial barriers to global charities, as we discussed above. As a member of the Friends Fund, an eligible organization is free from the rigors and carrying costs of American incorporation while still enjoying broad U.S. fundraising appeal and the ability to offer tax deductions for donations of any size from American philanthropists. The benefits associated with membership in the Friends Fund are twofold. The first tangible benefit conferred by the Friends Fund is that of time. Participation in the Fund relieves your organization of the burdens of incorporating in the U.S., building a board, filing Form 1023, and supplying the accompanying supplemental documentation. The finely tailored consultation of CAF's industry professionals puts 20 years of expertise in working with foreign charities at your organization's fingertips. Additionally, the Fund does not require that your organization form and sustain a board of directors and staff in the U.S. in order to qualify. Contrast this with 501(c)(3) incorporation, which requires drafting articles of incorporation, by-laws, and building a board even before applying for tax exempt status. The Fund offers the ability to bypass the months of planning prior to filing, and alleviates the stress of waiting an additional period of time (up to several months) before receiving word on your exemption status from the IRS. By removing U.S. registration, tax, and audit requirements, membership in the CAF Friends Fund allows your organization to focus on fundraising efforts, rather than compliance, while still broadening your appeal to American philanthropists. A second benefit of the CAF Friends Fund, when compared to 501(c)(3) incorporation, is that of associated cost. The Fund's one time setup fee of $1,220 and no minimum balance requirement allows your organization to begin receiving tax deductible gifts from American donors as soon as membership is approved. As discussed above, the initial cost of incorporation simply begins with roughly $1,200 in filing fees, not to mention the solicitor fees you may need to incur to navigate the intricacies of the IRC and the cost of setting up a stand alone “Friends of” board. Additionally, the cost of maintaining a board in the U.S. in order to continue enjoying tax exempt status as a 501(c)(3) can dwarf the annual administrative fee associated with the CAF Friends Fund.


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As a member of the Fund, an annual administrative fee of about $3,000 entitles your organization to receive unlimited donations through the online portal CAF will provide for you, in addition to wire transfers for all grants at no additional cost. Included, of course, is access to the expertise and advice of CAF America's professional staff. Further information regarding the establishment of a CAF Friends Fund, and other benefits it bestows, may be found here. CAF America's Friends Fund, while still relatively young, has already exhibited global reach. Additionally, CAF America can provide any global charitable organization with access to an American donor base, no matter how distantly its headquarters may be located from the U.S. Organizations such as the Australian Spinal Research Foundation based in Queensland and the University of Waikato in Hamilton, Waikato, NZ have already enjoyed success using CAF America's Friends Fund program to access American philanthropists and receive tax deductible donations through their individualized giving portals. In conclusion, if your organization is looking to build or expand its appeal amongst American donors, the CAF Friends Fund provides a less complicated and less costly alternative to obtaining 501(c)(3) tax exempt status. The Fund provides global charitable organizations with the opportunity to solicit tax deductible donations from American individuals and corporations on an ascertainable fee schedule, removing from play the fears of mounting solicitor fees or application rejections that come along with 501(c)(3) filings.


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IV- TEMOIGNAGES DE FONDATIONS ET DE COLLECTIFS REPRESENTANTS DES FONDATIONS

AMERICAINES

JENNIFER ASTONE, DIRECTRICE SWIFT FOUNDATION ET EXPERT

EXPONENT PHILANTHROPY

FONDATION BILL ET MELINDA GATES


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An Insight into U.S. Foundations that Give Internationally

by Jennifer Astone with thanks to Yumi Sera for her comments. Lors du dernier Exponent Philanthropy, Jennifer Astone, est venue présenter la politique de la fondation qu’elle dirige, Swift Foundation, dont on pourra lire le témoignage plus bas. Elle a proposé également ses réflexions personnelles, issues de dizaines d’années d’expérience au sein de fondations américaines, plus particulièrement, celles qui souhaitent agir à l’international. Jennifer a tout de suite accepté le principe de participer dans ce rapport. Elle le fait ici, sous sa casquette de consultante, en nous proposant des réponses à des questions qui lui paraissaient essentielles pour des acteurs français souhaitant s’imprégner du paysage des fondations américaines, agissant à l’international.

Jennifer Astone, Ph.D., advises donors and foundations on international giving practices and on building networks and collaborations. She serves as the executive director of the Swift Foundation. Swift provides grants and investment capital to promote cultural and biological diversity with a focus on land stewards, agro-ecology and creating resilient local economies. Jen leads Swift’s work with two sustainable agriculture collaboratives: the AgroEcology Fund and the Global Alliance for the

Future of Food. Prior to Swift, Jen served as the first executive director of the Firelight Foundation and as Africa Program Officer, Global Fund for Women. A graduate of Barnard College, Jennifer received her M.A. and Ph.D. in anthropology from Binghamton University in New York. Jennifer has spoken widely and served on numerous international committees including: the Council on Foundations and European Foundation Centre Joint Working Group on Accountability in International Grantmaking, and the Coalition on Children Affected by AIDS. Her work has focused on human rights, community-led development and social justice philanthropy. What should French NGOs know about American Foundations funding internationally? Diversity describes the 86,000 entities that make up the United States foundation community. They include public, private, operating and family-run organizations. According to the Foundation Center (www.foundationcenter.org) 98% of these foundations have assets less than $50 million or annual grant budgets of $2.5 million or less. Most of these funds are directed at domestic charities but a small slice of their dollars go beyond the U.S. borders to organizations around the world. U.S. Foundations often network by thematic and strategic issue area into “affinity groups” for learning, exchange and professional development. A list of over 40 such groups is on the Council on Foundation’s website www.cof.org/organization-type/affinity-group. Here foundations and NGOs can find groups such as the African Grantmakers Affinity Group (www.africagrantmakers.org), International Human Rights Funders Group (www.ihrfg), Engaged Donors for Global Equity (www.edgefunders.org), and the International Funders for Indigenous People (www.internationalfunders.org).


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Their websites include resources on trends, funders and other useful information for understanding the U.S. foundation community. How can a NGO identify U.S. foundations to support their work? The Foundation Center’s website offers a comprehensive approach to researching the world of U.S. foundations. Organizations can search for foundations that match geographic and thematic key words. NGOs can find reports on giving under the tab “Gain Knowledge” followed by “International Trends.” Here, Foundation Center staff and colleagues produce reports and analysis gleaned from their data. Once an NGO has identified a potential match, learn as much as possible about how the foundation operates from their website. Information on mission, vision, programs and past grantees enable an NGO to determine whether a match exists. What does it take for an NGO write a strong proposal? 1. Take a Course in Proposal Writing NGOs should sign up for courses and webinars oriented to the U.S. foundation market such as those offered at the Foundation Center. Understanding cultural differences in how to present your organization to an American donor is essential to a successful application. These courses can give an organization the edge in addressing critical issues such as the strategic importance of the work, presenting results, budget formatting and how the reputation of an NGO can affect the overall proposal. 2. Talk or meet with a Program Officer Find a person within the foundation to talk with in order to save a lot of time. The staff knows their current funding priorities, initiatives, and deadlines. Sometimes a foundation may change its strategic direction and the website is not updated. In other cases, there may exist a match between your organization’s passion and themes, but a mismatch when it comes to geography or population served. 3. Identify U.S.-based colleagues to review your proposal NGOs may wish to identify partners, advisors or consultants who can help review proposals and give feedback. If an NGO is serious about seeking increased funding from U.S.-based funders, regular trips to the U.S. are advised. Some NGOs recruit formal advisors or create a U.S.-based entity with U.S. board members to help navigate the complex world and develop relationships with U.S. foundations.


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What are U.S foundations’ biggest challenges in funding internationally? After working in international philanthropy for two decades, I see three main categories of U.S. foundations that make international grants. There are small foundations that make grants of less than $100,000 directly to organizations around the world. Many of these foundations have specific mandates to work in a country on or an issue. The often fund directly to NGOs or CBOs (community-based organizations) in country and steer clear of large international NGOs. They use a variety of methods to ensure that their funding reaches these groups such as: public foundations, financial tests, and donor advised funds. Some groups with long histories of doing this work include: Global Fund for Women (www.globalfundforwomen.org) and Global Greengrants Fund (www.greengrants.org). Foundations fund U.S.-based international NGOs or other intermediaries where they feel those organizations have a value-added proposition such as technical support, networking or expertise. In the second category are large foundations with endowments over $100 million that make grants of $100,000 on up to the millions. They hire specialized staff and often have in-country offices. They tend to fund international NGOs, governments, universities, and more established NGOs. Since their average grant size is larger, they require detailed and regular reports, and often feel that smaller organizations cannot handle the funds. They employ lawyers and large teams of professional staff to ensure that their grants are meet U.S. legal requirements. They belong to larger affinity groups such as the Council on Foundations (www.cof.org). Operating foundations fill the third category. They run their own programs and hire staff to develop and create programs that meet a charitable purpose. They don’t often make grants but seek them. What should we do in order to approach a U.S. Foundation? Once a good match between your organization and a U.S. foundation has been identified, the next step is to contact their program staff through a visit or phone call. Share a brief overview of your organization and be sure to include appropriate materials that outline your staff, board, mission, and programs. Find points of commonality. Share what excites you and what your organization is passionate about and expert in. Ultimately, the match between a foundation and an organization is about a shared mission and vision for the future. Articulate how your work advances that mission and what strategies you use. Communicate the need for your NGOs work and the demonstrable outcomes, be they stories, photos, or data. Be ready to share financial information, an audit and governance documents that can be crucial for establishing a track record and the transparency of your work. Also U.S. donors want to know who else is supporting you and how. While the process of identifying appropriate U.S. foundations may be daunting, the rewards of collaborating are huge for all concerned.


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Témoignage proposé par Andy Carroll

Senior Program Director

http://www.exponentphilanthropy.org/ Exponent Philanthropy, EP, récemment rebaptisé (auparavant, association of small foundations) est à mon avis la structure la plus intéressante à étudier de près pour des fondations françaises. Loin des grosses machines comme par exemple le réseau Grantmakers for Effective Philanthropy, EP propose à ses adhérents des services très proches de leurs préoccupations. Dans leur séminaire annuel, un des plus intéressants et friendly auquel j’ai pu assister, tous les sujets sont abordés, avec des intervenants très professionnels mais aussi qui savent rester à l’écoute des participants. Il y a une vraie ambiance de partage entre les adhérents qui rencontrent, compte tenu de leur taille relativement restreinte (nous restons tout de même à l’échelle américaine), le même type de problématiques. Pour ce rapport, Andy Carroll a bien voulu, non seulement nous renseigner sur Exponent Philanthropy, et plus généralement sur le paysage des fondations aux Etats-Unis, mais il a également recueilli des témoignages de fondations adhérentes, qui agissent à l’international. C’est riche d’enseignements pour les « fundraisers » car cela permet de situer la vision de ces fondations lorsqu’elles agissent à l’étranger, et ce qu’elles recherchent au travers de ces donations.

Andy develops resources and programs on grantmaking, leadership, and trends in small-staffed philanthropy. One of Andy’s goals and passions is to empower more foundations and donors to take advantage of their unique freedom, assets, and powers to provide leadership on important issues through convening, advocacy, and catalytic change. Andy writes “The Pulse” blog series on trends in philanthropy and is a trained facilitator in civic reflection. Prior to joining Exponent Philanthropy, he developed programs at the National Center for Family Philanthropy, and before that at the Council on Foundations. Andy has an MBA from the University of Michigan Business School, and has 30 years of experience in management, training, and program

development for nonprofit organizations. The Global Philanthropy of Small-Staffed Foundations How Funders Leverage Deep Knowledge and Passion to Build Community-Based Organizations Around the World Among the more than 86,000 grantmaking foundations in the United States, the vast majority are foundations with few or no staff. Exponent Philanthropy, an association based in Washington, DC, serves foundations and philanthropists who give while keeping their staff size small.


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Our 2,300 members operate in all 50 states and collectively give over $4 billion in grants a year. Their assets range from $500,000 to $100 million, with a median asset size of about $18 million. Almost one-quarter of our member foundations make international grants. These foundations are extremely passionate about their international work and highly knowledgeable about their funding areas and grantee organizations. (You will meet a few of these funders later in this article.) We learn about their work on a continual basis as we gather stories about their philanthropy, engage them in peer forums, and as they serve as mentors to foundations just getting started in global giving or as speakers at our educational programs. The international giving of our members is shaped by the unique qualities of small-staffed funders. What makes small funders unique? In all their giving, domestic and international, one distinctive quality is their personal approach to philanthropy. Giving by small-staffed foundations is an expression of the founder’s or family’s personal values, deep convictions about issues, life experience, or vision for change in the world. Passion plays a huge role. Philanthropy by small funders also is often shaped by the needs of the immediate community where the benefactors, trustees, and family make their home. Having deep ties to these communities as citizens, business owners, parents, and volunteers, the foundations’ leaders feel a strong commitment to strengthen their communities, and be responsive to local needs. Donating time and talent often is as important as giving money. The founders, trustees, and family of small-staffed foundations volunteer for the organizations they support, provide direct technical assistance and consulting, and introduce grantee organizations to other groups or other funders. Their philanthropy is highly engaged, hands-on, personal. When small-staffed foundations turn their attention beyond U.S. borders, they apply these same qualities. They find ways to bridge the great distances by making their international philanthropy personal, passionate, and responsive. They focus their international giving on supporting smaller organizations, in the same way they support smaller nonprofits in their local communities. These funders admire what small organizations accomplish being closely connected with their constituents, and they recognize how stretched for resources these groups are. Grants of $5,000 or $10,000 can make a big difference to small organizations in developing countries. Donors, trustees, and family members of small-staffed foundations devote time and care to finding international partners who are knowledgeable, experienced, community-based, and responsive to local needs.


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Favorite grantees include community clinics and childcare centers, schools, organizations that mentor and support children and youth in their educations, farmers’ cooperatives, rural microcredit groups, collectives that empower women, networks of indigenous people working to protect biodiversity—and many others. Some of our members also give college scholarships to foreign students. Sometimes, when small foundations help establish a new organization in a foreign country, providing the “risk capital,” and the organization demonstrates impact and promise, larger funders take notice and get involved. Some thought leaders in philanthropy believe this is one of the most powerful things foundations can do: use their deep knowledge and freedom to take calculated risks to support new ideas and new approaches to urgent problems. What processes do U.S. foundations use to make international grants? Foundations in the United States can make grants to foreign organizations either by granting to U.S.-based intermediary organizations, which makes the process as straightforward as granting to a domestic public charity, or they may grant directly to foreign NGOs by using one of two procedures designated by the Internal Revenue Service (IRS). These procedures are expenditure responsibility and equivalency determination. Small-staffed foundations use both approaches, making grants to intermediaries and making direct grants. Though direct grants require additional work and care, some small funders “do it themselves” to avoid outside fees, and to learn and develop detailed knowledge about their grantees, which is useful in their ongoing partnership. There are dozens of intermediaries operating in the United States; they often focus and have expertise in giving to a specific region of the world, or in a particular issue area. These organizations can take care of the due diligence, the IRS processes, and recordkeeping for foundations and individual donors, charging a fee for these services. Some intermediaries facilitate the kind of direct, hands-on engagement with community-based international organizations that small foundations seek. Small funders perform the same kind of careful due diligence to find appropriate intermediaries as they perform to find grantees. How do small-staffed foundations get involved in international giving? Some foundation benefactors served in the Peace Corps or other international service organizations, and their experience was fundamental in forming their philanthropy. Other small foundations were drawn into global giving by family members who traveled abroad and were impelled to add an international dimension to the family’s grantmaking. Yet others got involved by making grants for disaster relief or reconstruction to a foreign country. As more young people in the United States travel abroad, take part in service learning programs during high school and college, and take jobs abroad, it is predicted they will influence their family’s foundations to become even more involved and engaged in global giving.


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Stories of Three Small Funders Let’s take a look at examples of global giving by three members of Exponent Philanthropy. Swift Foundation: Taking the Lead to Support Food Sovereignty Across Africa http://swiftfoundation.org/

The Swift Foundation, a family foundation in California, supports local stewards in countries around the globe to protect biological and cultural diversity. To advance this work, the foundation made one of the first grants to the fledgling Alliance for Food Sovereignty in Africa (AFSA). Before 2011, no Africa-wide alliance existed to promote a farmer-centric vision of agriculture. The Swift Foundation recognized the power of AFSA's vision (to champion small African family farming production systems based on agro-ecological and indigenous approaches that sustain food

sovereignty and the livelihoods of communities). In May 2013, the foundation provided seed funding, $105,000 over three years; this early support has been matched many times over by funders from Europe and the United States. The investment not only attracted other funding, but enabled AFSA to develop its network, mobilizing members to support each other and exchange knowledge. The network is blossoming and is being recognized as an important voice at the African Union and in the Regional Economic Commissions. John F. and Mary A. Geisse Foundation: Boosting the Income of Farmers in Guatemala http://www.geisse.org/JohnandMaryGeisseFoundation.html One aspect of international giving that appeals to the John F. and Mary A. Geisse Foundation in Ohio is the tremendous impact a grant can have in the developing world. According to Board Member Tim Geisse, “In places where many people survive on $1 a day, a grant that enables them to increase their income to $2 a day can mean the difference between malnutrition and adequate nutrition, or be enough to enable parents to send their children to school.” A few years ago, the foundation made a grant of $75,000 to Strategies for International Development, an intermediary in Washington, DC, for its coffee project in Guatemala. The goal was to teach better farming techniques to indigenous, subsistence coffee farmers and enable them to increase income while simultaneously preserving the soil. To boost production, the project taught pruning and the use of organic fertilizers. To increase prices farmers could earn, the project taught the value of husking beans before selling them, organized farmers into cooperatives, and linked farmers to an international coffee buyer—eliminating a liaison. As a result of the project, 1,044 families in rural Guatemala doubled their incomes in 1 year. In addition, the farming techniques are reducing erosion and preserving the soil for future generations.


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Skees Family Foundation: Spotlighting Global Projects That Create Jobs, End Poverty http://skees.org/

The Skees Family Foundation, a family foundation spanning three generations based in California, funds storytelling for U.S.-based organizations working to end global poverty through education, job creation, and equal opportunity. The foundation recognized that small nonprofits working internationally do not have the capacity to share their

powerful work, and go unnoticed. By funding video stories about projects that create jobs, and supporting local, indigenous journalism in developing countries, the foundation seeks to develop greater connection, empathy, and understanding among U.S. citizens for local efforts around the globe to end poverty. Ultimately, the foundation wants citizens to be motivated to take action. Grants as small as $5,000 have supported videos and journalism in Rwanda, Guatemala, India, and many other countries. Examples include a video project exploring how Gardens for Health International combats child malnutrition and empowers families in rural Rwanda, and how Medha mentors low-income community college students in northern India to ensure their employability. ******* For more information on international grantmaking by small foundations in the United States, visit: http://www.exponentphilanthropy.org/resources/by-topic/grantmaking/international-grantmaking


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Témoignage proposé par Shelly Sundberg

Senior Program Officer, Nutrition

Lorsque l’on passe des plus petits à la plus grande ! Dans un tout autre genre de fondations, Shelly Sundberg nous propose ci dessous la vision de la Fondation Bill et Melinda Gates, fondation qui agit aux Etats-Unis mais également dans des pays en développement. A noter que la fondation a édité plusieurs guides destinés à mieux comprendre les règles et contraintes lorsqu’il s’agit pour des fondations américaines de vouloir agir à l’international.

Shelly Sundberg is a Senior Program Officer on the Nutrition team in the Global Development program of the Bill & Melinda Gates Foundation in Seattle. She joined the Gates Foundation in September 2008 and develops and manages grants in the nutrition portfolio, working to improve nutrition in sub-Saharan Africa and South Asia. Projects range from clinical efficacy trials to research and implementation projects to improve the impact of

agricultural policies and programs on nutrition. Shelly’s past research focused on the socio-economic determinants of household food consumption and nutritional status in West Africa. She has worked with the Michigan State University Food Security in Africa project in Mali exploring linkages between agricultural marketing, agricultural production, income, food consumption, and nutrition at the household level as well as household coping strategies in times of food shortage. She also worked on studies of grain marketing systems in Niger, Burkina Faso, Mali, Senegal, Mauritania, and Gambia. She has published journal articles on agricultural growth, food security, and undernutrition in Africa, has a bachelor’s degree in African Studies from Georgetown University, and completed a master’s degree and doctoral studies at the Food Research Institute, Stanford University.

A. What types of organizations are we concerned about and why We define “national” as an organization whose principal HQ is located in the intended area of geographic benefit (based on literature reviews) � We have found that roughly 40% of project budgets go toward salaries, fringe, and

travel (including indirect costs), so where the money flows is very important We care because of the advantages we are not leveraging by neglecting to directly engage with Natl’ Organizations � Local institutions have deeper knowledge and understanding of the local context � Local institutions can be more cost-effective in the medium- to long-term, increasing

the impact per dollar of support � Local institutions can be in a better position to ensure the long-term sustainability of

interventions � Direct engagement with on-the-ground actors can enable the foundation to learn

and develop more effective strategies and programs


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� Investing in national institutions means that more resources stay in-country, and can contribute to broad economic development and human capacity strengthening

B. What are our perceptions of the needs for these organizations

We have identified gaps in the following domains based on qualitative surveys and interviews with both POs and national organizations: � Governance (legal registration, mission statement, independent Board, leadership

development plan) � General management (organization chart; staff retention; staff performance

evaluation; organization-wide strategic and work plan and review; policies re administration, travel, data storage, communications, procurement, asset management, working conditions)

� Finances and financial management (annual budget growth, diversity of donors, finance staff and qualifications, finance and accounting policy, record storage, independent audit)

� Program delivery (staff knowledge and skills and relationship with beneficiaries, consultation of beneficiaries, experience managing sub-contracts or sub-grants, relationship with other stakeholders including government)

� Monitoring and evaluation (staff skills and experience, quantitative and qualitative indicators, budget for M&E)

C. BMGF National Grantmaking Toolkit

The National and Regional Grantmaking Working Group has produced the following tools to help manage the internal (Foundation) challenges of national grantmaking, as well as help improve the management and performance of intermediaries and national grantees: � Program Officer Guide to National Grantmaking: lays out the challenges,

opportunities, questions, and concerns that a PO will confront as s/he goes through the process of granting to and managing a national grantee (based on interviews with POs)

� National Grantmaking Operational Archetypes: lays out 7 operational models of national grantmaking, including using a fiscal sponsor, an intermediary grantee, regional training institutes, farmer organizations, etc., and specifies how each contribute to strategy outcomes

� Tax Status Guide: describes the three most commonly-encountered tax statuses for foreign organizations, and lays out the benefits and challenges of each tax status

� National Sub-granting Best Practices Guide: to ensure an effective relationship between sub-grantee and primary grantee that develops capacity of the sub-grantee

� Capacity Assessment Tool: to establish baseline measurements while separately tracking funded capacity gaps and overall organizational growth


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V- Annexes

EXTRAIT DE « THE RULES TO GIVE BY, A GLOBAL PHILANTHROPY LEGAL

ENVIRONMENT INDEX » EDITE PAR NEXUS / MCDERMOTT WILL&EMERY /

CAF

The Rules to Give By Index is an innovative, analytical, and universal step along the path to support Nexus’s Global Campaign for Culture of Philanthropy (“GCCP”). The GCCP advocates for public policies at national and global levels which encourage and enable more effective giving across the globe, and recognizes the diverse forms in which philanthropy appears. We promote good practice and celebrate role models to inspire greater generosity, and are galvanizing a global network of young people, activists, and experts to join us in our efforts. In producing this report, we seek to provide a new evidence base that can contribute to existing conversations on improving the global environment for philanthropy and stimulate further debate. Institutions such as the International Center for Non-Profit Law, the Council

on Foundations, the European Foundation Center, and the Charities Aid Foundation amongst others produce research and analysis on similar topics, and have often served as resources for this report. Through the process of research and analysis, we have identified the need for a more nuanced and focused inquiry for future iterations of this report. We aim to monitor changes in these laws with an updated release of this report every few years. In between updated reports, notable developments may be released by the Global Campaign for a Culture of Philanthropy, as well as a focused analysis from experts and practitioners on trends, obstacles, and models for philanthropy. https://www.cafonline.org/publications/2014-publications/rules-to-give-by.aspx http://www.nexusyouthsummit.org/programs/campaign/rgb-index/


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Executive Summary Philanthropy and charitable giving are the lifeblood of civil society. The support of individuals and companies, voluntarily choosing to give their money to help others, is vital to the work of non-profit organizations (“NPOs”) around the world. Although this activity is, by definition, independent of government, governments can still play a crucial role in ensuring the right legislative and regulatory conditions for such activity to thrive. This is something that all governments should strive to achieve, as a vibrant civil society sector is a key element of any healthy society. Despite the importance of government support for philanthropy in ensuring the sustainability of civil society, little is known about the overall global picture of how widespread this support is and what form it takes. This report is intended to address this gap in our knowledge and includes recommended international standards for the structures that support philanthropy. Rules to Give By is the first evaluation of the regulatory and tax conditions associated with philanthropy in each of the 193 United Nations Member States. Nexus has worked with McDermott Will & Emery LLP and Charities Aid Foundation over the last two years to gather and analyze comparative information on the legal and fiscal framework for charitable giving around the world that will provide an invaluable new evidence base and advance the debate in this area. This report is the first stage of Nexus’s “Global Campaign for a Culture of Philanthropy”, which advocates for public policies at local and global levels which encourage and enable more effective giving, recognizes the diverse forms in which philanthropy appears, and promotes best practice and role models to inspire greater generosity. We hope that the report and the accompanying index will be of interest to anyone who wants to better understand the legal frameworks governing the tax treatment of NPOs and charitable donations around the world, and how these frameworks can be used to stimulate greater philanthropic giving. This will include those in governments who have the power to design and implement the necessary policies, as well as those who stand to benefit from these policies such as philanthropists, businesses, and civil society. Our Key findings are that :

1. Incentives for philanthropy are the norm rather than the exception. 77% of nations offer some form of incentive to corporate donors whilst 66% of nations offer some form of incentive for giving by individuals donors. Across all income groups as defined by the World Bank, a majority of countries offer incentives to corporations, and a majority of countries offer incentives to individuals, except Low Income countries, only 44% of which offer incentives to individuals. All income groups see a higher rate of incentives for corporations than individuals. 80% of High Income countries offer incentives to both corporate and individual donors. Twenty-eight countries (16%) offer tax incentives to corporate donors but not to individual donors.


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2. Tax incentives for individuals appear effective in creating a culture of giving. Countries which offer tax incentives to individuals see higher rates of participation in giving money to charity. The proportion of people donating money to charity according to the World Giving Index is 12 percentage points higher in nations which offer some form of tax incentive to individuals (33%) than those that offer no incentives (21%).

3. Tax incentives appear effective in all economic development contexts. The effectiveness of tax incentives for giving is not dependent on a country’s level of economic development. Across the economic spectrum, countries which offer tax incentives to individuals see higher rates of participation in giving money to charity according to the World Giving Index. Indeed, Low Income countries see the largest correlation between offering incentives for individuals and rates of participation in giving to charity, with those who offer some form of incentive to individuals enjoying a participation rate in giving of 27% compared to 18% in Low Income countries which offer no incentives.

4. Legacy gifts to NPOs are not universally incentivized. 72 countries impose an estate (or similar) tax (41%). 34 of those countries (47%) offer no tax incentives for legacy gifts to NPOs.

5. There is a global consensus on providing tax exemptions for NPOs. Globally, only 9 countries (5%) provide no tax exemptions for NPOs, though exemptions offered vary between countries.

6. Higher-income countries are more likely to require reporting from NPOs. While 20% of the countries examined do not require reporting by NPOs, amongst High Income countries the figure falls to just 7%. In contrast, 17%, 24%, and 35% of Upper Middle Income, Lower Middle Income, and Low Income countries, respectively, do not require reporting by NPOs, suggesting a clear link between wealth and the regulatory complexity of the environment for giving.

7. NPOs are unlikely to have reporting requirements sensitive to their size. Of the 141 countries with reporting requirements for NPOs, only 26 (18%) have reporting requirements sensitive to organizational size. Of those 26 countries, 16 are High Income countries and none are Low Income countries. However, some countries have variable reporting requirements for characteristics outside the scope of this report.


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8. Countries with a higher per capita gross national income (“GNI”) tend to score higher on the RGB Index.

Countries considered by the World Bank to be High Income nations received an average score of 8.9 out of 11 in the RGB Index compared to 7.4 for Upper Middle Income, 6.9 for Lower Middle Income and 5.8 for Low Income countries.

9. With the exception of Singapore, all of the 11 countries that received the highest possible score in the RGB Index were both High Income countries and members of the Organisation for Economic Co-operation and Development (OECD).

Though causation is difficult to prove, the participation of High Income countries in international economic cooperation appears to result in a mainstreaming of progressive legal norms for encouraging and safeguarding charitable giving. Parmi les pays étudiés dans le rapport, dont la France, on retrouve les informations concernant les Etats Unis, et évidemment la notion du 501(c)(3)

United States of America

1. Does the country have a tax system in place?

Yes. In the United States of America (“U.S.”), tax is imposed on income, property, sales, imports, payroll, estates and gifts at the federal level and, in certain instances, at state and local levels. On the federal level, there are three tax administrations: the Alcohol and Tobacco Tax and Trade Bureau (i.e., taxes on alcohol, tobacco and firearms), the U.S. Customs and Border Patrol (i.e., taxes on imports) and the Internal Revenue Service (the “IRS”), which taxes all other domestic activities (e.g., income, estates, gifts, etc.). The U.S. has no sales or Value Added Tax (“VAT”) at the Federal level, but most states, and some cities, have a sales tax. The IRS is a division of the U.S. Department of Treasury. The organization of state and local tax administrations varies widely by jurisdiction.

2. If yes to 1, then does the country provide tax exemption for non-profits?

Yes. To be exempt from federal income tax and many state income taxes, an organization must qualify as a charitable organization pursuant to the requirements set forth by the IRS. Qualification requires that the organization be created or organized and operated exclusively for religious, charitable, scientific, literary or educational purposes, as those terms are used in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the “Code”), and which otherwise qualifies as an organization described in Section 501(c)(3) or 170(c)(2) of the Code. The U.S. does not restrict the number of organizations of any type that may qualify as tax-exempt, but does require that they be organized and operated for their exempt purposes, and not to benefit individuals controlling the organization.


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3. If yes to 2, then does the country provide reporting requirements for non-profits?

Yes. Every qualified charitable organization exempt from federal income tax must file an annual information return (i.e., Form 990, Return of Organization Exempt From Income Tax) unless the IRS has exempt such organization, or type of organization, from filing. Organizations generally exempt from filing annual information returns include: religious/church affiliated organizations; state institutions; certain corporations organized by an Act of Congress; governmental units or affiliates of a governmental unit; private foundations (private foundations are required to annually file Form 990-PF, Return of Private Foundation); and political organizations. 4. If yes to 3, then are those reporting requirements sensitive to the size of

organizations?

Yes. Qualified tax-exempt organizations whose annual gross receipts are greater than 200,000 USD or total assets are greater than 500,000 USD must file Form 990, Return of Organization Exempt From Income Tax. Qualified tax-exempt organizations whose annual gross receipts are less than 200,000 USD or whose total assets are less than 500,000 USD may file a short form return, Form 990-EZ, Short Form Return of Organization Exempt From Income Tax. Small tax-exempt organizations whose annual gross receipts are less than 50,000 USD (or less than 25,000 USD for tax years ending before December 31, 2010) may file a simple electronic annual report (i.e., Form 990-N, Electronic Notice (e-Postcard)). 5. If yes to 1, are there tax incentives in place to encourage philanthropy?

Yes. The U.S. provides charitable contribution deductions for federal income tax purposes. Such deductions are allowable for contributions of cash, property or, in limited cases, services to (or for the use of) qualified tax-exempt organizations, subject to deduction rules set forth by the IRS. Generally, contributions to qualified tax-exempt organizations are deductible to the donor up to 50 percent of the donor’s adjusted gross income, unless the donee organization uses earnings to benefit a private shareholder or if it attempts to influence political campaigns or legislation. In most states, charitable deductions are available for state income tax purposes. Gifts may be of capital and still get an income tax deduction, although the annual limitation for individuals is lower (30 percent of the donor’s adjusted gross income rather than 50 percent) for non-cash gifts, and there are further limits on deductions for gifts of art or other collectibles, or inventory property. Estate and gift tax deductions are also available for gifts to charity. Gifts to foreign charities are generally not deductible for income tax purposes, however, many foreign charities have associated U.S. tax-exempt organizations to receive gifts from U.S. donors. 6. If yes to 5, then do individuals and corporations have different incentives?

Yes. Corporations may claim deductions for charitable contributions, in cash or other property to (or for the use of) qualified tax-exempt organizations. Although the incentives are similar to those for individuals, there is a limitation on such deductions by corporations. Generally, a corporation cannot deduct charitable contributions that exceed


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10 percent of the corporation’s taxable income for the tax year. Any contributions in excess of the 10 percent limit may be carried over to each of the subsequent 5 years; a corporation loses any excess not used within the 5 year period. In most states, charitable deductions are available for state income tax purposes, subject to similar limits as imposed at the federal level. 7. Finally, does there exist an “estate tax” or some equivalent mechanism that

encourages the creation of donor institutions?

Yes. Federal estate tax is imposed on the transfer of the taxable estate of every decedent who is a U.S. resident or citizen. The taxable estate of a decedent does not include charitable contributions (i.e., any portion of an estate going to charity is not subject to the federal estate tax). For states that impose an estate tax, charitable deductions are generally available for state estate tax purposes. FINAL SCORE: 11 (la France a le même score) Rapport : Rules to Give By: A Global Philanthropy Legal Environment Index 149

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