User:Johnbod/Friends of organization
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A "friends of" organization is a charitable organization in the US created in order to support a foreign charity.[1]
"Friends of" organizations are often founded to support other charitable bodies that may not be founded in the same country and may have independent tax status as a charity under local tax law and thereby benefit from local tax exceptions.[2][3][4][5][6]
According to the American Council on Foundations, since the terrorist attacks of 2001, a "Friends of" organization is increasingly used by US based organizations seeking a legitimate means for cross-border transfers of funds to foreign organizations. "The term "Friends of" derives from the fact that the names of so many organizations that support foreign charities begin with these two words."[7] These organizations are almost always US nonprofits, either public charities or private foundations. The Council goes on to state that "A "Friends of" organization generally exists to provide federal tax deductibility for charitable contributions to support a foreign charity by breaking a "conduit" flow of funds to the foreign charity."[7] These organizations may have very specific legal responsibilities.[8] In the United States, a "Friends organization" may "receive its public charity status (as opposed to private foundation status) by meeting the IRS requirements for a "supporting organization." [9]
References
- ^ 19 Akron Tax J. 1 (2004) The Tax Treatment of International Philanthropy and Public Policy; Paine, Robert. "A "friends of' organization is a charitable entity organized in the US for the purpose of supporting a foreign charitable organization."
- ^ Hopkins, Bruce R. (2011), The Law of Tax-Exempt Organizations (10 ed.), John Wiley and Sons, p. 879, ISBN 9780470602171
- ^ Judith S. Ballan, "How To Aid a Foreign Charity Through an 'American Friends of Organization," in Proceedings of the Twenty-Third New York University Conference on Tax Planning.
- ^ "Legal Dimensions of International Grantmaking: How a Private Foundation Can Use "Friends of" Organizations". Usig.org. Retrieved 7 June 2011.
- ^ "Giving Insights: Meet the expert: Suzanne M. Reisman, Law Offices of Suzanne M. Reisman". Gi.philanthropycapital.org. 3 March 2010. Retrieved 7 June 2011.
- ^ Larkin, Richard F.; DiTommaso, Marie (2011), Wiley Not-for-Profit GAAP 2011: Interpretation and Application of Generally Accepted Accounting Principles, John Wiley and Sons, p. Ch.11, ISBN 9780470554456
- ^ a b [http://www.usig.org/legal/friends_of_organizations.asp United States International Grantmaking, Council on Foundations
- ^ Nonprofit Law Resource Library, Legal Responsibilities of US "Friends" Organizations
- ^ The difference between a Friends organization and a 501C3