Thousands of nonprofits in the United States carry out their work abroad. Many grantmakers and foundations have very particular rules when it comes to funding international organizations. This post will help you navigate some of those rules and help you evaluate whether an international organization is grant ready.
When writing grants for programs that will be implemented abroad, it is important to identify the nonprofit’s structure, so that you can find viable grant opportunities.
Types of Organizations
International Organizations
These nonprofits operate on-the-ground in multiple countries. Some of the most well-known examples include the American Red Cross and Save the Children. The largest of these types of organizations may have headquarters in different countries and several types of nonprofit registrations, including 501(c)(3) status in the United States.
Domestic Organizations with International Partners
This is a more typical arrangement for small to medium sized nonprofits. The organization is registered as 501(c)(3) in the United States, but funds work done by an on-the-ground partner program. The international partner may or may not be registered in the home county.
Foreign Organizations
These include charities, cultural centers, and other organizations that are fully registered in the country in which they operate in, but have no legal connections or registration requirements within the United States.
Most grantmakers that fund projects carried out abroad will consider the first two types of organizations. That is because these organizations have the tax-exempt 501(c)(3) status. But what if you are working with an organization in the third category? Grants and funding are still available, but you will need to broaden your search.
Finding Grants for International Organizations
For example, global organizations, such as the United Nations and the International Monetary Fund, do fund foreign organizations, as long as they are registered properly in their own country.
Nearly every country also has grant programs to support foreign aid and development that are also open to foreign nonprofits. In the United States, the agency USAID is a major distributor of international grant funding.
However, some grant announcements may request that foreign organizations partner with a 501(c)(3) registered charity for fiscal sponsorship.
Foreign organizations can also file for recognition by the IRS by submitting Form 1023, Application for Recognition of Exemption Under Section 501(c)(3). Registered Canadian organizations are automatically recognized by the IRS as private foundations and are exempt from filing Form 1023.
If a Canadian nonprofit wants to be classified as a public charity, then the Form 1023 must be filed.
There may be other funding opportunities available based on the foreign organization’s geographic location. For example, organizations based in one of the 27 countries of the European Union can qualify for European Union grant programs.
Some opportunities are also available to the overseas territories of EU nations, such as Mayotte in the Indian Ocean and the Caribbean Islands Guadeloupe and Martinique. Most of the EU grant opportunities are compiled on the European Commission’s Single Electronic Data Interchange Area website.
Higher education institutions may also qualify for grants to fund study abroad programs through the Erasmus+ program.
Many countries also base their grant priorities on the Sustainable Development Goals (SDG) established by the United Nations. Foreign organizations that address issues such as access to clean water, sustainable agriculture, gender equality, or education will be eligible for a wide range of grant opportunities.
Some notable organizations that give funding towards SDG-related programs include the Bill and Melinda Gates Foundation. The grant search portal, Candid, has an entire search section dedicated to grants for SDG projects.
International nonprofits are also often eligible for grant opportunities announced through the U.S. State Department. U.S. embassies often coordinate annual Small Grants programs that fund local organizations doing work that promotes cross-cultural understanding between the U.S. and host country.
Grant Readiness for Foreign Nonprofits
If you are writing grants for a foreign nonprofit, evaluate their grant readiness before starting the grant search process. Here are some questions to ask before you help them apply for international grants:
Do they have a DUNS number, NCAGE code, and SAM registration? In order to qualify for any U.S government grants, such as grants through the U.S. Embassy or USAID, foreign nonprofits must register in the System for Awards Management (SAM.gov) and obtain a DUNS number. The DUNS number site may not be available outside of the U.S., so a grant writer in the U.S. may need to be contracted to complete the enrollment process. You can find the steps for registering a foreign nonprofit here: https://www.rd.usda.gov/files/HI-SAMGuide.pdf
Are they registered in their home country? Always keep proof of registration on file.
Do they need a fiscal sponsor? Countries that have limited financial infrastructure or are prone to volatility may not qualify for funding unless they are partnered with an organization in a more stable country. While grantmakers will usually list countries with this requirement, you can also assess your client’s capacity for fund management and determine if a fiscal sponsor is appropriate.
Are there local/regional grant opportunities? If you can read and write in the language used in the foreign nonprofit’s base country, consider researching local grantmakers. EU and UN grant opportunities are usually announced in Spanish, English, and French.
Finding grants for international nonprofits can be a little more challenging than for domestic organizations, but the opportunities are there. If you would like to learn more about grant research and funder fit, check out the grant writing course, Grant Writing Made Easy.
