April 15, 2002 | Read Time: 3 minutes
Q. I am an American citizen teaching at a university in Changsha, China. I would like to create a charity that asks for donations from both the United States and China to help educate poor children in China. The charity would be registered in the United States, but the volunteers and I would all be working in China. How can I go about starting an international charity? Are there any legal organizations I can turn to for help? A. Setting up a charity that operates domestically is no simple task. Starting an international charity can be much more complex, says Rob Buchanan, director of international programs at the Council on Foundations, in Washington. You’re going to have to research and comply with the laws governing charities in both the United States and China. Here’s a general overview of your options. You could join forces with a U.S. organization that helps charities that operate abroad (such as the Asia Foundation’s Give2Asia, he says, which helps donors support Asia-based charitable organizations). You could set up a charity in the United States that would raise funds in the states, but operate abroad. (These are often referred to as “friends of” organizations.) Or, you could set up your charity in China, and then apply for certification as a charitable organization under U.S. law, says Mr. Buchanan. The International Center for Not-for-Profit Law, in Washington, maintains an extensive database of information about nonprofit laws and policies in China. You should definitely seek a lawyer’s advice before making any major decisions, says Craig Cole, executive director of Five Talents International, a Fairfax, Va., charity that serves as a microcredit loan agency, making small loans to help poor entrepreneurs in underdeveloped countries. Since the organizational structure that will work best for you depends on what you’re trying to achieve, it’s a good idea to clarify your goals before you seek legal advice. Questions that Mr. Cole says you should consider include: Why is this new organization necessary? What need is this organization going to fill that is not being filled already? What other organizations are already doing similar work? (All, by the way, are good questions to ask yourself before creating any charity.) If you want to learn more before racking up legal fees, check out two Council on Foundation publications: First Steps in Starting a Foundation (2002, $25 for council members, $45 for nonmembers), by John A. Edie, and Beyond Our Borders: A Guide To Making Grants Outside the U.S. (1999, $25 for members, $40 for non-members.), by Mr. Edie and Jane C. Nober. Though both are geared to grant makers rather than grantees, they each contain information that could be helpful in your situation. Both publications can be ordered from the Council’s Web site, or by calling (888) 239-5221. Also, two Web sites may offer some help: The U.S. International Grantmakers, which includes a report on charitable laws in China, and the China Charity Foundation, which is an umbrella group of foundations in China. Got a question about job hunting, recruiting, or managing in the nonprofit world? Send it to us at hotline@philanthropy.com.
