What Nonprofits Should Consider Before Expanding Abroad

Your U.S. nonprofit organization has just received a grant to implement a program in another country. The program advances your mission and aligns directly with your organization’s expertise. As you begin arranging to hire local staff or open a bank account, you discover that you may need to register a legal presence in the country.

Registration triggers a set of tax, employment, compliance, data privacy, and risk management obligations that can extend well beyond the initial grant or program budget. However, it is not always required, and where it is, more than one operating structure is usually available. Once registered, the organization will have a legal presence in place, requiring management of related costs, risks and oversight responsibilities that come with operating in another country.