Global giving has become important to most philanthropists. However, if you contribute to an international cause through an organization that is not registered as tax-exempt with the IRS, you will not receive a tax deduction. If you give through an organization that is registered with the IRS, you will receive a charitable tax deduction.
Americans give about $300 billion to charitable causes annually. Only about five percent of that is spent on international causes; and nearly 40% of that five percent is donated by the Bill & Melinda Gates Foundation.
There are many nonprofits, registered in the U.S., that provide grants to international causes. Donors can usually pick which grants to support. U.S. based granting organizations include:
- Oxfam America
- Global Fund for Women
- Grassroots International
- Development Gap
- Funding Exchange National Grants Program
- The Global Exchange
- International Development Exchange
In addition, many American nonprofits funnel money to international destinations through disaster relief (e.g. American Red Cross) or social ventures (e.g. Living Goods).
Resource: Robin Hood Was Right: A Guide to Giving Your Money for Social Change, Collins, Rogers, and Garner, Norton & Co., 2001.
