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Deductions for Gifts to Foreign Charities?

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Deductions for Gifts to Foreign Charities?

We are a Canadian charity with many U.S. donors who make contributions with no tax benefits. Are there any legal restrictions to the nature and/or extent of fundraising solicitations that we may carry out in the U.S.? Is there any way we can offer U.S. tax benefits to our U.S. donors without going through a U.S. 501(c)(3) fiscal agent?

Assuming that you are not a terrorist organization, I am not aware of any limitations on your fundraising efforts in the U.S. You will have to review the charitable solicitation registration law of each state in which you solicit to see whether you are required to register to solicit contributions in that state.
It is possible to obtain grants through a U.S. fiscal agent (See Ready Reference Page: “Charities Must Take Care in Serving as Conduits.”), but the most common way to give U.S. taxpayers the right to deduct contributions that eventually benefit a foreign charity is to create a “friends of” organization in the U.S. U.S. taxpayers are not permitted to claim deductions for gifts to foreign organizations.
Tuesday, February 20, 2007

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