IRS Tutorial Explains The Special Rules For International Activities Of U.S. Charities

The IRS presents webinars on a variety of subjects. In August, the IRS presented a webinar conducted by two IRS representatives on the special rules affecting charities that make grants to foreign organizations or engage in activities in foreign countries.

In a fairly comprehensive course, the following significant points were made:

1. A U.S. charity can do anything in a foreign country that it can do here, provided that the activity is consistent with the charity's exempt purposes.

2. For purposes of the rule that a charity may not devote a substantial part of its activities to legislative lobbying:

a. lobbying includes action by the public in a referendum, ballot initiative, constitutional amendment or similar procedure;