Complex, DAF & Foreign-Grant Gift Acceptance Policy
The board-level policy governing acceptance of non-cash, cross-border, and intermediated gifts an international NGO encounters: DAF grants, securities/crypto, foreign-source funding, and outbound grants to overseas partners.
Draft: pending review
This starter document is signed off by International-NGO counsel (IRS foreign grantmaking + OFAC) + tax counsel + CFO before it ships. The guardrails below define that review.
What’s inside
- Acceptance matrix by gift type: cash, securities, crypto, DAF grants, in-kind, bequests, foreign-government grants
- Outbound foreign-grant procedure: equivalency determination vs. expenditure responsibility for grants to non-US entities
- Foreign-source funding review: reputational, sanctions, and foreign-agent considerations
- DAF-specific rules: no bifurcated gifts, no fulfilling personal pledges, no impermissible benefits
Legal & ethical guardrails
The sector-specific compliance points this document must honor.
- IRS foreign-grant rules: equivalency determination / expenditure responsibility is the PRIVATE-FOUNDATION regime (IRC §4945). A PUBLIC CHARITY instead exercises discretion and control and obtains accounting that funds served 501(c)(3) purposes (Rev. Rul. 63-252 / 66-79), and must avoid earmarking/conduit arrangements
- OFAC/CFT: both inbound foreign funds and outbound cross-border grants must clear sanctions/counter-terrorism screening
- DAF compliance: accepting a DAF grant against a binding personal pledge or with donor benefits violates IRS rules
- FCPA/foreign-source risk: vet foreign-government-linked funding for bribery, conflict, and reputational exposure
- Screen partners against the OFAC 50% Rule (an entity ≥50%-owned by SDN(s) is itself blocked) and avoid earmarking/conduit arrangements through a US 'friends of'; confirm whether a self-executing general license already authorizes the activity rather than assuming a specific license is needed
Held for professional review.
The native DOCX and full working text ship only after sign-off by International-NGO counsel (IRS foreign grantmaking + OFAC) + tax counsel + CFO on this exact version. The summary and review requirements remain visible in the meantime.
Not legal advice. Not legal, tax, or accounting advice. The Fundraising Co. provides educational fundraising materials and is not a law firm; nothing here creates an attorney–client relationship or substitutes for advice from professionals licensed in your jurisdiction. Laws and IRS rules vary by state and change over time. Review every document with qualified counsel before use.