Global giving

A guide to tax considerations and trusted partners.

Global giving is on the rise: According to Giving USA, contributions to international affairs have grown 21% in the past five years.

One reason for the uptick is the increased visibility of international concerns. With the wide accessibility of global information via social and news media, we’re more aware of current events than ever. This connectivity, through social media's real-time depiction of crises, fosters empathy and motivation to help, encouraging support for international aid efforts.

If you’ve been moved by a recent global crisis and want to make a difference, there are a couple considerations that will help you make the most of your donation.

Tax considerations

First and foremost, your donation should be driven by your passion for the causes close to your heart. But, before you make a charitable contribution to fund an international mission, it’s important to understand whether your donation will be eligible for a tax deduction. Donations made directly to an organization outside of the United States are not deductible on a US tax return. However, this may not matter to you, especially if you plan to take the standard tax deduction.

If you’d like your international donation to be tax deductible, there are several ways to accomplish this. One of the simplest ways is to find a U.S. nonprofit that supports the cause you care about overseas. US nonprofits like United Way and American Red Cross are often top of mind.

A charity like the Center for Disaster Philanthropy is another good option that allows you to donate through community-driven grantmaking. They track critical disasters, both domestic and international, and enable you to donate directly to them, a US-based organization. One of the benefits of working with an organization like Center for Disaster Philanthropy is that your contributions are distributed according to current needs to organizations that it has thoroughly vetted.

If you have a specific foreign organization in mind, consider asking them directly if they have any U.S.-based organizations that support them. If so, you can donate stateside through the connecting organization and still take advantage of the US-based tax deduction. For example, it’s common for US-based religious organizations to raise funds to support a mission overseas.

Using a partner

Another way to ensure your donation aligns with your charitable pursuits and provides a tax deduction is to use a trusted partner, like Charities Aid Foundation (CAF) America. They will research your intended beneficiary and conduct the due diligence required by the IRS to validate your deduction. If you decide to use this method, weigh the pros and cons of paying the fee to have the charity certified; is it worth it for the tax deduction?

If you’re not using a partner, be sure you do your own due diligence so you can have confidence that you’re donating to a reputable international charity. Due diligence can entail talking to the executive director and other donors, checking for news reports and asking for financial reports.

Above all else, you want your money going to the global causes you care most about, and to feel good that you’ve made a difference beyond borders.

Raymond James does not provide tax advice. Please discuss these matters with your tax professional. Raymond James is not affiliated with any other entity listed herein.