Thinking about going global with your charitable giving? When it comes to crossing borders for charitable endeavors, one would think processes and protocols would help ease the effort. Unfortunately, just like the globalization of the economy, the globalization of individual charitable giving has brought with it more complex legal challenges.
This is an increasing trend, too.
According to the 2012 Giving USA Study of charitable giving, international giving has been increasing for the past several years. This increase has come despite the struggling economy and overall challenges to domestic giving. In fact, international giving has experienced a 15.2% growth from 2009 to 2011, with the data yet to come for 2012.
For a comprehensive summary of the challenges that have come with this unprecedented rate of growth, I highly recommend a recent article on WealthManagement.com titled “Giving Without Borders.”
In practice, giving without borders often requires analyzing all relevant “borders” to determine how each side of the border will account for the gifts. Indeed, “gift” can be something of a misnomer with the rise of “impact investments.” All the same, when an individual decides to transcend borders with generosity, the laws of each nation and a tangle of international law may come into play.
If you do decide to go global with your charitable giving, you and your advisors will have to be prepared to carefully navigate the tumultuous sea of laws you will encounter along the way – on both sides of the border.
Reference: WealthManagement.com (January 14, 2013) “Giving Without Borders”