CAFAmerica Solutions for International Giving

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CAFAmericaSolutions for International Giving

Prepared forEuropean Association for Planned Giving

April 3, 2007

Hosted by Ernst & Young, London

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CAFAmerica Introduction

Mission CAFAmerica makes it safe, easy, and effective for U.S. donors to engage in global philanthropy.

Expertise Experts in cross-border philanthropy and enabling a wide range of different types of donors to

connect with local charities around the globe.

Overview We provide international grant making and consultancy services to US donors. Donors can give how much they want where they want to legitimate foreign charities Our donors include companies, families, individuals, private & community foundations. CAFAmerica can make a grant to any legitimate foreign charity around the world as long as there is

no legal or ethical barrier to do so. In 2006 we made over 1,900 grants to charities in more than 73 countries.

CAFAmerica grant making services are growing with 2 new services introduced in 2005/06 CAFAmerica is part of the CAF International Network with offices in 7 countries: Australia, Bulgaria,

India, Russia, South Africa, the United Kingdom and the United States and local partner organizations in Brazil, Turkey, and Chile.

CAF network offices have expertise in family philanthropy, charity banking and investment, corporate giving, research, and managing fund raising appeals. CAF in the UK manages over $2 billion of charity and donor monies.

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U.S. Global and Domestic Philanthropy

U.S. Global giving: $71 billion Giving by individuals, public charities, corporations, immigrants, universities and foundations overseas

totaled $71 billion (2005). (Source: ‘The Global Philanthropy Index’, The Hudson Institute, 2006)

Corporations gave $4.9 billion (2005) a 22% increase over previous years.

(Source: Conference Board quoted on U.S. InfoState.gov website)

Total international giving by U.S Foundations $3.8 billion (2005)

(Foundation Center, ‘International Grant making Update’, December 2006)

U.S. Domestic giving: $260 billion U.S. population comprises 300 million people (U.S. Census 2006). Giving represents 1.67% of GDP,

twice as much as the UK and Canada.

Private giving totaled $260 billion (2005), a $15 billion (6.1%) increase over 2004.

(Source: ‘Giving USA 2006’, Giving USA Foundation)

75% of private giving comes from individuals; 11.5% from foundations; 5.3% from companies; and 5.7% from bequests. Giving increased from all these sources in 2005. (Giving USA, 2006)

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CAFAmerica: Donor Receipts and Growth Projections

Receipts (in $ millions)

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0

00/01

01/02

02/03

03/04

04/05

05/06

06/07 (FEB 07)

07/08 (projected)

08/09 (projected)

09/10 (projected)

10/11 (projected

Amount

Total

$28.0

$24.0

$20.0

$18.0

$16.6

$12.7

$15.9

$8.8

$9.0

$7.3

$8.9

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CAFAmerica: Grantmaking by Region

CAFAmerica occasionally makes grants within the USA. N. America includes Canada and Mexico as well as the USA.

Grants by Region FY 04/05$13,873,361.49 Total

Europe70%

Latin America6%

N. America3%

SE Asia15%

Africa1% Asia

4% Australia & Pacific

1%

Africa

Asia

Australia & Pacific

Europe

Latin America

N. America

SE Asia

Asia: China, Hong Kong, Israel, Japan, Jordan, Korea, Pakistan, Turkey

SE Asia: Bangladesh, India, Indonesia, Philippines, Singapore, Sri Lanka, Thailand

Australia & Pacific: Australia & New Zealand

Grants by Region FY 05/06$12,141,739.27 Total

Africa4%

Asia9%

Australia & Pacific

1%

Europe54%

Latin America17%

N. America4%

SE Asia11%

Africa

Asia

Australia & Pacific

Europe

Latin America

N. America

SE Asia

Asia: China, Hong Kong, Israel, Japan, Jordan, Korea, Pakistan, Turkey

SE Asia: Bangladesh, India, Indonesia, Philippines, Singapore, Sri Lanka, Thailand

Australia & Pacific: Australia & New Zealand

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CAFAmerica: Grantmaking by Sector

Grants by Sector FY 04/05$13,873,361.49 Total

Arts/Culture21%

Children/Youth5%

Community & Social Development

20%

Education33%

International Aid/Development

4%

Religion3%

Health/Medicine12%

Emergency Relief0%

Animals/Environment2%

Animals/Environment

Arts/Culture

Children/Youth

Community & Social Development

Education

Emergency Relief

Health/Medicine/Hospitals


Religion

Grants by Sector FY 05/06$12,143.319.27 Total

Arts/Culture13%

Children/Youth19%

Health/Medecine18%


6%

Religion4%

Education23%

Emergency Relief

1%

Community & Social

Improvement9%

Environment/Animals

19%

Arts/Culture

Children/Youth

Community & Social Improvement

Education

Emergency Relief

Environment/Animals

Health/Medecine


Religion

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CAFAmerica: A Success Story

Over $100 million in donations received and distributed since 1993.

Introduction of new innovative charitable solutions for donors and charities: e.g. ‘Friends of’ Charity Fund, online giving, consultancy and due diligence services.

Encouraged key donors to give more by offering a reliable, responsive service.

Strong grants administration procedures inspire donor confidence despite the legal context of U.S. international grant making, 80% of grants made within 1 month.

Growth in grants made year to year, and since 2002 to 30 new countries.

Built awareness of CAFAmerica and international philanthropy issues among U.S. donors and foreign charities via seminars and written materials.

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CAFAmerica Services

CAFAmerica offers a wealth of advice to suit donor needsDonors can benefit in many ways from our experience in providing international grant-making advisory services. Services are tailored to donor needs but encompass:

How CAFAmerica assists donors: Facilitates international grant making through donor advised grants or funds, charitable remainder trust services, customized advice and support regarding gift planning, foundation management, and investing in the charitable sector abroad.

• International program support offers donors the ability to access our experts for help in overall program planning, development of guidelines, monitoring and evaluation of grant making programs and in-depth analysis of issues or geographic regions.

International grants management offers donors assistance with administering grants, recommending grantees, managing grantee communications and collecting and reviewing reports.

Due diligence and charity research offers donors access to our experts network, pre- and post-grant site visits, full charity audits, and information on specific issue areas or geographic regions.

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CAFAmerica Solutions

Advantages for donors – CAFAmerica can:

Make grants from the United States to overseas charities of any type Assist individuals who are dual US/UK taxpayers make overseas grants Enable high-net worth individuals to give via a CAF office to domestic and overseas

charities Help donors devise grant making strategies that enables their global giving investment

make a difference in countries around the world Assume the administrative burden of international grant making leaving donors free to

concentrate on their giving Identify donors to encourage collaborative grant making Accompany donors on visits to identify grant making opportunities Give safely, easily and effectively on a global scale Assist donors turn their vision into grant making that achieves results and lasting impact Connect donors with legitimate foreign charities anywhere in the world

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CAFAmerica Solutions

Services for Donors

Donor Advised Fund with online account access and management to support grant making. A flexible CAFAmerica giving vehicle for when the donor is living and after death where assets can be managed by the donor’s bank or financial service.

Advisory Services to fully develop grant making strategy, identify legitimate charities, establish and maintain a grant making protocol, and provide other customized services and advice related to the donor’s needs.

CAFAmerica can be name as a beneficiary in a charitable lead trust or charitable remainder trust. Equally a donor advised fund can be used.

Donors can give cash, and stock to CAFAmerica. We can also handle a legacy and can discuss the handling of non-tangible donations.

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CAFAmerica Donor Advised Fund

The Donor Advised Fund (DAF) is designed for individuals, groups, foundations, or corporations who wish to support international non-profit organizations. Once the fund has been established with a minimum of $5,000, the donor may make grant suggestions at any time. A DAF is designed for donors who make a high volume of gifts (10 or more) throughout the year and who require account management and services such as regular fund balances and activity statements.

Core Services for Donor Advised Funds: Payment of all grants Secure online access to statements of fund activity Due diligence by CAFAmerica staff to ensure that grants are made to legitimate foreign charities Customized options to allow CAFAmerica to handle the donor’s needs Other customized reporting services to meet the donor’s needs

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CAFAmerica Donor Advised Fund Fees

Administrative costs associated with a Donor Advised Fund are assessed as a proportion of contributions and are shown below per calendar year:

$1,000 account set-up fee (one time charge) min. balance $5,000 5% of contributions up to $100,000 2.5% of the next $400,000 contributed 1% of the next $250,000 contributed 0.5% of all other funds contributed

For additional information, please visit http://www2.cafonline.org/cafamerica/default.cfm?page=faqs

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CAFAmerica Services for Donors

Donor Advisory Services are not part of the core DAF, MDAF, or DAG services.Program support, advice or grants management: Services for international grantmaking are designed in consultation with our donors. We identify, analyze, and assess potential grantees and advise donors about the development of their international grantmaking programs Pre & post grant site visits: CAFAmerica will conduct periodic post grant site visits at the request of the donor or at its own discretion Full charity audits Due Diligence: Conduct due diligence in accordance with U.S. law on foreign charities upon a donor’s request

Charitable Remainder Trust: CAFAmerica can be named as the recipient of a charitable remainder trust with suggestions for further grants to foreign charities.

Tangible Gift: CAFAmerica can partner with other U.S. public charities to help donors liquidate high value tangible gifts such as artwork, property, or any other illiquid asset, and grant the proceeds to a foreign charity of their choice.

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CAFAmerica Donor Advisory Services

In addition to DAF services for international grant making, the donor can benefit from our experience in providing international grant making advisory services. These services fall into three categories: program support, program advice, and grants management and can be customized to meet your donor’s unique needs.

1. PROGRAM SUPPORT

We can develop or strengthen the donor’s grant making program by helping to: Consult with the donor about interest areas, international community needs, and strategies for

effective grant making Identify, analyze, and assess potential grantees and conduct site visits Make grant recommendations and prepare dockets Monitor and evaluate grant making programs Develop grant making program guidelines Acknowledge applicants’ proposals and notify grant applicants and grantees Forward applicants’ proposals to the donor Monitor grantee reports

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2. PROGRAM ADVICE

We can help the donor make strategic planning decisions about global grant making programs by helping to:

Facilitate discussions about identifying and starting community initiatives, working in a geographic region or with partners, being clear about a vision and goals

Refine the grant making strategy and develop protocols Facilitate in-depth analysis of issues and strategies for effective grant making in

selected interest areas, countries and local communities Conduct site visits of potential grantee organizations Evaluate and assess potential grantee applications

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3. GRANTS MANAGEMENTWe can help the donor achieve an efficient, streamlined international grants management system by helping to:

Administer grants Manage ongoing communication with applicants and grantees Advise about issues and strategies for an effective grantmaking Monitor grantee reports

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CAFAmerica Donor Advisory Services Fees

Due diligence on foreign charities - $150 per hour with a minimum of three hours per charity. Translation services are available at cost of translation plus $150 per hour for administration with a deposit of $1,000.

Consultancy and Advisory services - $300 per hour with a minimum of three hours. Pre & post grant site visits - $3,500 per site visit plus reasonable travel (e.g. economy

airfare) hotel and subsistence expenses.

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CAFAmerica Services for Charities

“Friends of” Charity Fund: A cost-effective alternative for charities seeking to improve their support from U.S. donors. The Fund avoids the cost and trouble of administering a separate charitable entity in the United States and enables charities to launch and maintain a U.S. fundraising appeal and accept tax-deductible donations of any size from U.S. taxpayers. For more information, please visit: http://www2.cafonline.org/cafamerica/default.cfm?page=friends

Consultancy Services for Foreign Charities: Identify opportunities to raise visibility in the United States (e.g., participation in

conferences, media outreach, meetings, etc.) Craft a message and fundraising materials for a U.S. audience. Identify private and corporate foundations and other donors who may be inclined to support

a charity’s work. Review U.S. fundraising programs and grant seeking proposals. Identify fundraising consultants and firms that can help create a successful U.S. appeal;

and help negotiate the terms of an agreement. Find other like-minded charities in the United States and around the world to work as

partners in joint marketing/fundraising efforts. Costs: $150 per hour (minimum 3 hours) for desk research; $300 per hour for consultancy.

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CAFAmerica: Policy on Terrorism

CAFAmerica policy is to make grants to organizations exclusively in furtherance of charitable purposes, as defined by the U.S. Internal Revenue Code. Accordingly, CAFAmerica checks the charitable status of each recommended grant recipient. In addition, CAFAmerica monitors watch lists and other releases from U.S. government agencies regarding organizations suspected of supporting terrorist activities. If CAFAmerica is unable to verify the charitable status of an organization or if an organization is suspected of supporting terrorism, CAFAmerica will not approve a grant to a charity.

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CAFAmerica Contact Information

Chief Executive Officer – Susan K.E. Saxon-Harrold

CAFAmericaSuite 1501800 Diagonal RoadKing Street StationAlexandria, VA 22314-2840

www.cafamerica.orgwww.allaboutgiving.org/americaemail [email protected]

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CAF American Donor Fund Contact Information

Mr. Vivian StreetCAF American Donor Fund18-20 St Andrew StreetLondon EC4A 3AGUnited Kingdom

[email protected]

CAFAmerica Solutions for International Giving

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