IRS Issues New Regulations To Facilitate Foreign Grantmaking

New rules expand the class of tax practitioners qualified to issue good-faith determinations regarding foreign-grantee equivalency; IRS seeks comments on further amendments to current regulations.

On September 24, the Internal Revenue Service (IRS) issued proposed regulations expanding the class of qualified tax practitioners who may assist private foundations to make foreign equivalency determinations (equivalency determinations) for grants to foreign charities.

Secretary of State Hillary Clinton suggested that the new regulations will pave the way for the creation of centralized equivalency determination information repositories that would enable foundations to rely on third-party equivalency determinations, such as NGOsource.¹ In her remarks about the creation of a new Global Philanthropy Working Group to promote the growth of independent civil society internationally, Secretary Clinton said that "although it's not specifically addressed in the new rules, this