Helping Ukrainians – Practical U.S. Federal Tax Compliance Considerations for Foreign Grantmaking

Many nonprofits and churches are quickly pivoting from their regular charitable and religious activities to assist with the humanitarian crisis caused by the Russian invasion of Ukraine. If this type of giving falls outside of the organization’s normal activity, it is important to maintain legal compliance with U.S. federal tax law and Department of the Treasury sanctions governing international grantmaking activities for public charities and private foundations.

We are pleased to share an extremely pertinent article by Mike Batts, CPA, of BMWL, Batts Morrison Wales & Lee Certified Public Accountants, with their permission.

Nonprofit Holiday Highlights

The year 2021 is quickly winding up, and 2022 is just across the horizon! Our law firm’s attorneys and paralegals deeply value the honor and opportunity to assist so many amazing nonprofit organizations and their incredible leaders, and to help advance their compelling and worthwhile missions. Thank you for this opportunity to serve as trusted legal advisors providing client-focused solutions, creative approaches to advance clients’ interests, and vibrant community engagement to help the nonprofit sector flourish. As a parting gift for this year, we’d like to share some holiday cheer – and what better way than through providing links to some key W&O blog articles across our nonprofit practice groups? We hope the W&O blog will continue to be a valuable resource for you!

Giving Globally Part 2: Expenditure Responsibility

Imagine a newly formed nonprofit is organized to help end poverty internationally. The foundation’s board aims to accomplish its charitable purpose in many different ways, including funding local organizations in foreign countries. The grant-related tax concept of “expenditure responsibility” is vital if the new organization is a private nonoperating foundation, and it is also quite helpful for other Section 501(c)(3) organizations.