blogger visitor

Monday, October 10, 2005

Gifts to Foreign Charities

If you would like an income tax deduction for gifts for use abroad, generally gifts cannot be made to organizations organized in a foreign country. Listed below are some general planning arrangements that allow for making tax-deductible gifts that are directed for use abroad:

-gifts to organizations organized in certain countries with tax treaties allowing for the deduction (e.g., Israel, Canada, Mexico)

-gifts to domestic "friends of" organizations that provide financial support to foreign charities (so long as such organizations are not obligated to transfer gifts to a foreign organization)

-gifts to a "donor advised fund" that makes international grants

-gifts through U.S. private foundations that meet specific expenditure rules for grants to foreign organizations

-gifts to domestic organizations that directly expend funds abroad in furtherance of their exempt purpose.

No comments: