Charities Aid Foundation America (CAFAmerica) has created a "fast track" fund to assist foreign nonprofit entities, the organization announced Monday.
CAFAmerica's 'Friends of' Charity Fund enables non-U.S. charities to raise funds from American donors without going through the effort and expense of setting up their own public charity in the U.S. Donors to the foreign charities make their checks payable to CAFAmerica, a 501(c)(3) organization, and indicate in writing how they want their donation distributed. CAFAmerica in turn sends donors a tax receipt.
"Our goal here is simple: We want to make sure that those who need aid in 2011 can get it as expeditiously as possible," Susan Saxon-Harrold, CAFAmerica's chief executive, said in the statement. "With a 'Friends of' Charity Fund at CAFAmerica, foreign nonprofits can quickly launch and maintain a U.S. fundraising appeal and accept tax-deductible donations of any size from U.S. donors."
By CAFAmerica's estimate, setting up a fund will cost a foreign charity about a third of the amount of establishing a U.S. 501(c)(3) entity. Moreover, the charity will have no U.S. government registration, governance, tax or audit requirement.
Denise Simpson, director of advised giving at CAFAmerica, said in a telephone interview with AdvisorOne that the 'Friends of' Charitable Fund can help foreign charities learn the American charity scene and establish a presence in this country before setting up their own nonprofit organizations, as many successful ones will be inclined to do.
