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Posted on September 1, 2020

Nonprofits (or NGOs) based outside of the U.S. are usually not eligible to receive tax-exempt status here. These NGOs may choose to form a brand new U.S.-based §501(c)(3) or to partner with an existing U.S.-based §501(c)(3) with a similar mission in order to be able to obtain tax-deductible donations from U.S. taxpayers. But U.S.-based nonprofits risk losing their tax-exempt status if they accept donations on behalf of organizations based in other countries without meeting certain IRS requirements. This article outlines the three key factors the IRS uses to determine whether or not a US §501(c)(3) can accept donations on behalf of organizations based outside the U.S.