The Council on Foundations, in collaboration with the Foundation Center, Independent Sector, and InterAction, has announced the selection of TechSoup Global, a San Francisco-based nonprofit, to host an Equivalency Determination Information Repository.
The repository effort seeks to establish a streamlined system for qualifying foreign grantee organizations as the equivalents of U.S. public charities, which the Internal Revenue Service prescribes as a key requirement for U.S.-based foundations that want to make cross-border grants to foreign NGOs. Currently, in order to make an equivalency determination, U.S. private foundations must go through a sometimes lengthy and expensive process involving the collection of the prospective grantee's organizational documents, a detailed description of its purposes and activities past and present, financial data, and copies of relevant laws governing the organization in its own country. Moreover, if another foundation wants to make a grant to the same organization, it must go through the entire process on its own.
Since early 2007, the Council on Foundations, the Foundation Center, Independent Sector, and InterAction have collaborated with other key organizations and international grantmakers on the project. With the selection of the host organization, the council will seek approval of the repository and enter into a multiyear contract to establish and maintain it.