A comprehensive service.
Paragon empowers your foundation or donor advised fund to make international grants directly to the grantees of your choice. We save you time and deliver peace of mind by handling the three core requirements of international grantmaking:
1. Implement the correct compliance approach for international charitable giving: Equivalency Determination, Expenditure Responsibility, or special procedures to qualify governmental entities.
2. Follow anti-terrorist financing screening best practices to ensure grant funds are not diverted.
3. Meet specific foreign country requirements affecting the grantmaker and grantee.
The Paragon difference
International grantmaking is our expertise. We provide remarkable, high-touch service, tailored to your needs. Our comprehensive due diligence and vetting solutions, our in-depth knowledge of the requirements, and our team's extensive cross-cultural experience have gained us the trust of many of the largest foundations and donor advised funds in the United States.
In addition to the Equivalency Determination certificate, Equivalency Determination PLUS includes watch list screening (SDN search, etc.) at the Silver Vetting level and review of foreign country requirements affecting the grantmaker and grantee. We manage all communications with the foreign grantee, review the grant agreement (as appropriate), secure grantee signatures, obtain international wire transfer information, and confirm receipt of funds.
Our service includes pre-screening for any red flags, reducing the chance that you will pay for an Equivalency Determination that is unsuccessful. There is no membership fee.
In addition to required Expenditure Responsibility steps, Expenditure Responsibility PLUS includes watch list screening (SDN search, etc.) at the Silver Vetting level and review of foreign country requirements affecting the grantmaker and grantee. We manage all communications with the foreign grantee, review required documents, secure grantee signatures, obtain international wire transfer information, and confirm receipt of funds.
Neither Equivalency Determination nor Expenditure Responsibility is required to qualify foreign governmental entities for an international grant. Instead, specific documentation from a governmental grantee is obtained to demonstrate government ownership or control. Examples of governmental entities include public colleges and universities, cities, school districts, and water districts. In addition to required due diligence steps, Government Entity PLUS includes watch list screening (SDN search, etc.) at the Silver Vetting level and review of foreign country requirements affecting the grantmaker and grantee.
When making international grants or payments, it is important to adopt specific practices that lessen the risk of diversion of charitable funds by terrorist organizations and their support networks. Grantmakers that fail to take appropriate steps can face significant penalties if funds are diverted and counterterrorism regulations are violated.
Paragon's anti-terrorist financing screening service, which encompasses watch list screening and related steps, assists your grantmaking public charity, private foundation, or DAF in complying with U.S. laws, statutes, and regulations related to combating terrorist financing.
Paragon's Equivalency Determination PLUS, Expenditure Responsibility PLUS, and Government Entity PLUS services include verifying compliance with foreign country requirements. Some countries, for example, require that a grantee obtain special registration, or secure specific information about the grantmaker prior to receiving foreign funding. Not meeting such requirements, where they exist, could put a grantee’s staff or operations at risk, or result in grant funds being sequestered by a foreign government.
A review of foreign country restrictions and requirements should form an integral part of your foundation's international grantmaking procedures. This is underscored by global trends toward a ‘closing space’ for international philanthropy. Paragon's article in Alliance Magazine, Internationally Engaged Foundations: Coping with the Disabling Environment, discusses some of the existing risks, challenges, and solutions.
International Grantmaking Policies and Procedures Audit
Our team is available to review your foundation's policies and procedures for international grantmaking, or provide on-site training or coaching as needed. These services can be tailored to your specific needs.
A Grantee Credibility Assessment provides insight into a grantee's reputation, the impact of its programs, and other key criteria. We assess grantee strengths and weaknesses and identify possible red flags to help ensure your support will prove a good investment.
The San Francisco Foundation
Douglas B. Marshall, Jr. Family Foundation
Rodan + Fields Prescription for Change Foundation
Greater Kansas City Community Foundation
Seattle International Foundation
Communities Foundation of Texas
Marin Community Foundation