Meeting Foreign Country Requirements
A review of foreign country restrictions and requirements should form an integral part of your foundation's international grantmaking procedures. 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.
Paragon's Equivalency Determination PLUS, Expenditure Responsibility PLUS, and Government Entity PLUS services include facilitation of compliance with foreign country requirements. This service can also be requested on a stand-alone basis, or in conjunction with anti- terrorist financing screening. Our team manages the following steps for your family foundation, corporate foundation, or donor advised fund:
An evolving global landscape
The importance of being both aware of and compliant with foreign country requirements 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.
1. Review foreign country restrictions and requirements
- Review foreign country requirements affecting both the grantee and the grantor in the context of an international grant. Such requirements may, for example, include a requirement for special registration, special permitting, or the provision of specific information to the foreign grantee or foreign government.
2. Obtain and submit required documentation and information
- As required, obtain documentation of grantee compliance with foreign country requirements related to the receipt of international grant funding.
- As required, facilitate compliance by the grantor with foreign country requirements.
3. Alert the grantor on foreign country restrictions of particular concern
- Alert the grantor to foreign country restrictions on the operations of civil society organizations that may affect the implementation of grant activities.