Foreign Grants Require Special Considerations
Both public charities and private foundations should take special precautions to avoid tax, criminal penalties
U.S. taxpayers and domestic charities often seek to support charitable activities abroad. But making grants for charitable activities in foreign countries subjects both U.S. taxpayers and U.S. charities to additional rules.
Contributions by U.S. donors are deductible if made to U.S. charities that conduct activities abroad, but are usually not deductible if made directly to foreign charities. Tax treaties with Canada, Mexico and Israel allow deductions for gifts to certain charitable organizations in those countries, but generally deductions are available only for gifts to U.S. charities.
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