Overseas Funding and the IRS
As a past director of an American friends of organization, I know questions often arise as to how to stay on the correct side of IRS regulations and still support the overseas entity. Here’s a pretty straight-forward q. and a. from one law firm where nonprofit law is one of its practice areas.
Can a domestic charity, as an IRC Section 501(c)(3) tax-exempt organization, fund the activities of national charity offices and other foreign projects in such a way that its exempt status is not jeopardized and donor deductibility is fully preserved, without the domestic charity exercising legal control over such organizations or projects? The short answer is “yes.”