Funneling U.S. non-profit donations to a foreign country

August 7, 2024 10:30 AM

I'm looking for ways to have a non-profit presence in the United States to funnel money to a non-profit entity in Mexico. The idea is for people to get the tax break in the U.S. and have an entity that people can donate to through Benevity. Forming a 503(c) ourselves and working whatever legal magic is necessary is a last resort. There might be services that could set this up for us? Or other ways to do it?

We've been doing this through a Catholic Diocese in Pennsylvania, but they've started to lose interest and we should probably have a backup in place.

This is a dot the i's and cross the t's sort of thing, as the DEA pays extra attention to money flowing from the U.S. to Mexico.

posted by Tell Me No Lies to Law & Government (3 answers total)

I'd suggest looking for a "fiscal sponsor" - a nonprofit org that already has 501(c)(3) status and provides administrative support for not-for-profit projects in exchange for a fee. You'd need to find one familiar with legal/accounting/etc. requirements related to working with nonprofits in Mexico. Just from searching around, here's an example: Border Philanthropy Partnership. You could get in contact with them and see if they'd meet your needs or have other recommendations.

10% of donation income is a typical cut for a competent fiscal sponsor, and in my experience it's completely worth it. I've been a volunteer on fiscally-sponsored projects and I'm a volunteer board member for a small independent 501(c)(3), so I know how much work they save. Agree that forming your own 501(c)(3) is a last resort - it takes up volunteer capacity that is better used on program work.
posted by dreamyshade at 10:59 AM on August 7

Seconding fiscal sponsors. Feel free to PM me, but I actively work in the fiscal sponsor field.
posted by something_witty at 1:42 PM on August 7

If it is academic related - universities will be interested.
posted by Barbara Spitzer at 12:51 AM on August 8