People and communities in need of assistance can be found in every corner of the globe. Fortunately, charities through the generosity of donors stand ready to assist and can navigate local needs serving in places donors would like to assist.

Donors making international grants can leverage local charities’ knowledge to ensure laws and customs are successfully navigated, and knowing the challenges they face can help donors make the most of their grants.

Unfortunately, the global grantmaking landscape is becoming increasingly complex due to regulatory, legal, and taxation structures; making charitable donations to another country can be fraught with obstacles, even for experienced donors and grantmakers. 

UNDERSTANDING LOCAL LAWS IS CRUCIAL

Within the context of cross-border giving, donors must be aware of the rules and regulations in their home country and the laws in the country where their charity operates. 

Understanding the local business climate can provide essential information for donors that can determine the impact of their charitable giving. It can inform donors’ decisions and help them achieve their philanthropic goals. It can also help donors decide which countries to focus their efforts on and those they should avoid.

This post will explain the factors that affect the business climate and how you can use this information to achieve your charitable goals. In addition, it will share a resource that provides critical information.

When making international grants, it’s important to remember that each country has rules and regulations that charities must follow to operate. Official government policies — including labor policies and practices, tax structures, and property rights laws — can impact a charity’s services and how they’re conducted.

Business climates vary from country to country. As a result, charities operating in a new country may have to develop unique strategies for navigating the environment, including local laws, culture, and politics. They also need to consider how their organization will be affected by changes in the local economy or natural disasters.

In addition, business climates change over time — sometimes very quickly. For example, when a country is dealing with an economic recession or natural disaster (or both), organizations are forced to assess their ability to continue to operate and achieve their mission and adapt their strategies accordingly or risk failing. 

a COUNTRY-SPECIFIC Research tool

One valuable resource to help determine the investment climate and how it can impact your charitable giving is available using the US Department of State Investment Climate Statements. The statements provide information on more than 170 countries and economies.

They offer intelligence on market conditions, including issues like labor protections, environmental considerations, and responsible business conduct. Other topics include legal and regulatory systems, real and intellectual property protection, and corruption.

The information can be accessed by visiting https://www.state.gov/investment-climate-statements, then selecting a country in the “Location” drop down on the right column. Click on “Build a Custom Report” to select selections of the report that interest you or choose them all to get a comprehensive report on that (or multiple) countries.

Leveraging Others’ Experience

Whether you are making a charitable donation to a foreign country for the first time or considering investing charitable capital in a country, learning about the business climate in the country in which you are investing can help maximize your charitable impact. 

Many donors and global philanthropists rely on organizations like TrustBridge Global Foundation to help navigate the complexities and risks associated with international granting. Opening a Foundation Fund (a Swiss donor-advised fund) with TrustBridge Global Foundation is a great way to begin staging your charitable donations for global impact. With a grant-making history in over 80 countries, TrustBridge Global can offer insights and assistance in most countries you are exploring.