10 Things to Consider Before Seeking Gifts Abroad

Seeking gifts overseas can help your nonprofit raise its international profile, secure new revenue sources, and boost awareness of your cause. That’s why many organizations are either looking abroad for dollars or considering doing so.

Take Beth Israel Deaconess Medical Center in Boston, which five years ago started raising money in China. The hospital needed to beef up giving to meet its long-term goals, says chief development officer Kristine Laping, so it decided to “think differently” and look beyond the city’s over-tapped pool of philanthropists.

The institution started by identifying a few of its research programs that could appeal to international donors who want to support world-class efforts to solve global problems. At the same time, the hospital was starting to receive small gifts from China for specific projects. “We were sensing there was interest in this institution,” Laping says, “and rather than be reactive, we said, ‘Let’s be proactive and see what will happen.’ ”

The results are looking good. During the past five years, international giving has accounted for 5 to 30 percent of Beth Israel’s total money raised. The higher end of that range is less typical, Laping says; the institution received several “extraordinary” gifts one year. But it now can count on about 5 to 10 percent of its fundraising revenue to come from this new source.

If your nonprofit is thinking about raising money abroad, here are 10 questions to consider before making an investment — and tips to help you succeed.

Where do you want to go and why?

Start with just one or two markets in a new country, says David Cashman, director of international advancement at the University of Chicago. The college gets around 8 to 13 percent of its fundraising income from international gifts. Set a time frame of three to five years, Cashman says, “then assess from there whether you should expand or pull back.”

To figure out where to start, take an inventory of contacts your employees, board members, and other connections have overseas, says Laping says. And take it slow. “Test the waters a bit to be sure that there really is an opportunity.”

Build on the strengths you have in the country or region you’re entering — such as a mission that is compelling in the local context or strong contacts. “You have to have one or the other at a pretty high level,” Laping says. For instance, Beth Israel is well-positioned to raise money in China because the country has a big interest in health care, she says. Plus, the hospital’s affiliation with Harvard gives it a leg up.

Are there donors who will support your mission?

“There’s no such thing as a global landscape,” says Marta Lejkowski, the Nature Conservancy’s director of philanthropy for Europe. Pick a region to focus on and try to assess the feasibility of seeking gifts there, such as by looking at the flow of philanthropy from the country to the United States. “Otherwise, you’re establishing something without any evidence that it’s possible,” she says. Consulting research by international groups such as the Organization for Economic Cooperation and Development, is a good place to start, she says.

Also figure out if there are donors in the country who are likely to support your cause and at what level, Lejkowski says. This will help shine a light on how to focus your fundraising. For example, the Nature Conservancy started seeking major-gifts in Europe about five years ago because it identified a pool of potential supporters. So far, the group has raised nearly $3.5 million dollars from the region.

But be careful not to stray from your mission to attract gifts overseas, she says. “You need to find donors for your mission — not just find donors.”

Is your organization in a hurry to see results?

It can be challenging to figure out the potential return on investment in international fundraising — and a realistic time frame for seeing it, Cashman says. Work with fellow leaders to define success from the beginning, whether that means a revenue goal or a nonmonetary benefit, such as attracting new audiences.

Your nonprofit needs to be willing and able to wait to see results, says Katie Fanning, prospect research and database manager at the Missouri Botanical Garden, which is getting started with international fundraising and hired Fanning to help. If your leaders want to see a return in one year, she says, “it might not be worth it.”

Is the investment worth the risk?

It can be helpful to set a benchmark for deciding if entering a new market is worth it, Cashman says. The University of Chicago, for instance, would need to receive about $10 million in a new country within about three to five years to make it worth the time, work, and auditing required to set up a giving vehicle there.

Is your organization in it for the long haul?

“You have to think about [international fundraising] as a permanent expansion of the development office and staff [it] appropriately,” Cashman says. For example, make sure your team includes someone who can help your organization understand and identify prospective donors abroad.

Such research is “labor-intensive,” Fanning says, so “if you don’t have resources to do it and don’t have gift officers with time and space to do it, there’s really no point.”

It’s essential for your organization’s leaders to be involved and committed, too, Cashman says. The appropriate person — such as the president or relevant dean at a university — needs to be able to visit the region frequently to build relationships with key prospective donors.

Can you comply with the country’s laws on giving?

Before soliciting gifts in a new country, make sure you can legally receive contributions there and take them to the United States, Fanning says. Do research to understand the steps you must take to comply with the local regulations. As an early step, she suggests, seek guidance from the Association of Professional Researchers for Advancement.

Assess whether your staff has the knowledge and experience to handle compliance work, she says. If you know of other organizations that are already raising money in the region, connect with them to get tips and start building a network.

Are you prepared to navigate the culture?

Don’t assume a country’s views on giving mirror those of the United States. For example, asking for money is taboo in some countries, Fanning says. In other places, such as Europe, people may not understand why an organization isn’t fully funded by the government.

When creating your strategy, think about how to “engage with people in a way they will understand,” she says. If you have staff members in the country — or employees at your headquarters with family or other links to the culture – use them as a resource.

Having someone guide you through the culture also can help you avoid faux pas when soliciting a gift or meeting a prospect for the first time, Laping says. “You may not get another shot at meeting with someone if you’re not sensitive to the cultural context that you’re working with.”

Do you have access to local fundraising expertise?

Contacts ― such as volunteers, consultants, staff members, and international board members ― who understand giving in the country can help you “navigate the nuances of a market and open doors,” Cashman says. “If they’re excellent, they can essentially be surrogates of leadership in the country, and that’s particularly important.”

Laping credits much of Beth Israel’s results in China to two “champions” from the country who have helped the hospital advance its fundraising goals there, such as by identifying and securing meetings with prospective donors.

“Having someone who knows how philanthropy works in the culture you’re trying to work in — it just gives you such an edge,” Laping says.

The men, both of whom already had connections to the institution before helping to raise money, have become increasingly involved with Beth Israel in the process: Both have become board members and have made “eight-figure” contributions, according to Laping.

Do you understand the risks of dealing with foreign donors?

Many people who are less experienced with giving, such as new philanthropists abroad, expect to receive something in return, Cashman says. It can be tough for American organizations to recognize this “quid pro quo expectation” if it isn’t explicit, he says. But you should be aware of this potential risk and make sure you understand the motivations of your donors and prospects.

Gift agreements with international contributors usually need to be more detailed, Laping says. For example, you might receive funding from an overseas company that wants to use your nonprofit’s name and logo to publicize its support for your cause.

“It’s hard to control from thousands and thousands of miles away what they might be doing with your brand,” Laping says, so you need to take steps to protect it, such as outlining which uses are permitted in an agreement.

How will entering a new market affect other groups working on your cause?

Will you be competing for funds with other organizations already raising money there? “You have to consider whether you’re increasing the pie for everyone or actually just displacing donations from other organizations,” Lejkowski says. “Done well, you can really grow the pie.”

If you decide to take the plunge, Cashman says, be sure to manage the local community’s expectations. Don’t promise more involvement than your organization is committed to, he says. If you do and you can’t follow through, “it’s really hard to build those relationships because you’ve deflated this balloon.”