Article Archives >> Ready Reference >> August 1-15, 2005
Preview of Article:
Foreign Grants Require Special Considerations
Both public charities and private foundations should take
special precautions to avoid tax, criminal penalties
By Virginia P. Sikes
Montgomery, McCracken Walker & Rhoads, LLP
Excerpt
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.
Article Archives >> Ready Reference >> August 1-15, 2005
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