Giving Without Barriers: Global Expertise To Change the World
People in every corner of the globe face obstacles, from poverty to displacement, to food insecurity and disease. Numerous organizations work diligently to help those affected. However, while thousands contribute to charitable organizations, more is needed to help them accomplish their missions.
Meeting these challenging needs demands a global view that directs funds to where they’re needed most. Cross-border giving has the potential to make a significant impact in addressing global poverty, inequality, and injustice. That makes international giving an essential component of any philanthropic plan focused on appropriating funds where they’re needed most. However, cross-border giving can be complex and overwhelming.
Whether you’re an individual donor or a family foundation making grants, your philanthropic journey can be hindered by numerous obstacles. Continue reading to learn about barriers to giving and how to overcome them.
Barriers to Giving
Lack of Expertise
Cross-border donations require a level of expertise most individuals and grantmaking organizations don’t have. Not having the expertise to vet organizations can create significant issues.
Grants are a considerable part of a nonprofit organization’s revenue stream, enabling innovation and growth and sometimes unlocking other funding opportunities. Yet, without expert guidance, how grants are disbursed can create problems for charities and their beneficiaries.
Lack of Information
Many potential donors may need to be aware of the most effective ways to give or may need access to reliable information about organizations and programs working in other countries. Additionally, a lack of transparency and accountability among some international organizations can make it difficult for donors to trust that their money is being used effectively.
Cultural and Linguistic Differences
Even when donors have access to information about organizations and programs, cultural and linguistic barriers can make it challenging for donors to understand the needs of the communities they are trying to assist. Donors may need help understanding the cultural context in which organizations operate and how to communicate effectively with those they are trying to help to avoid misdirecting funds to unsuitable projects.
Legal and Regulatory Issues
The laws and regulations of countries govern the receipt and use of international donations, and navigating these can be a significant challenge for donors.
Most countries have regulations that impact the flow of philanthropic funds both into and out of their countries. In addition, the political climate can often change those regulations, adding increased scrutiny to cross-border donations and restricting their flow into the country.
According to a recent report from Indiana University’s Lilly Family School of Philanthropy, “The Global Philanthropy Environment Index 2022,” dozens of countries have implemented regulations to limit cross-border donations.
Logistical Complexities
When making cross-border gifts, there can be many obstacles to getting resources to the people who need them. Issues like poor infrastructure, lack of access to financial services, and lack of transportation and communication networks all contribute to the challenge.
Overcoming Barriers to Giving
Organizations like TrustBridge Global offer services, including due diligence, that help donors navigate the sometimes complicated landscape of grantmaking, especially regarding international giving.
For example, we perform due diligence to protect grantmakers against potential risks, including:
Legal risks
Mission alignment (or lack thereof)
Financial security
Reputational risks
Due diligence requires conducting intensive and exhaustive research on each grantee. It involves reviewing a potential grantee based on various criteria, including experience, the grantee’s geography, existing safeguards (such as local staff or partners on-site), and the current political climate in the grantmaker's country. In addition, TrustBridge also considers anti-terrorism laws and regulations affecting the grantmaking process.
Streamline Your Grantmaking Operations
Poverty, displacement, food insecurity, and disease are without borders, and grantmaking shouldn’t have borders either. Yet, despite barriers, cross-border giving is an important way to address global issues and positively impact the world.
Global grantmakers can utilize the invaluable resources and expertise TrustBridge Global provides to overcome barriers affecting global grantmaking. Working with the TrustBridge Global Network ensures that your funds are distributed where they can make a meaningful difference.
Whether you’re experienced in global grantmaking or just beginning the journey, working with TrustBridge Global to process your international grants can be a significant benefit. Our extensive knowledge reduces risk exposure and workload to enhance your global grantmaking.