International philanthropy has a lot of tax and legal obstacles. The below is a list of solutions that we identified based on our in-depth knowledge of the international landscape, the function of a number of limiting rules, and research into the real causes of these obstacles:
- Recognition of privileged tax status across borders
We have a lot of experience with the way in which the Netherlands recognizes foreign public benefit organizations as ANBIs (institutions whose efforts must focus on the general good for at least 90%). This status enables Dutch residents to donate to these organizations without paying gift tax and to deduct their donations on their income tax returns. Other countries are increasingly recognizing Dutch public benefit organizations, which gives your organization access to a foreign donation market.
- The ideal jurisdiction for an international organization that is fully or partially charitable for wealthy families
This ideal jurisdiction depends on a number of subjective factors as well as on the organization's intended objective. Will it be Switzerland, Singapore, London, or the Netherlands? Or a combination of two organizations that may or may not be recognized as public benefit organizations?
- European or Supranational foundation or association under Dutch law
There is no such thing as a European foundation and it is not likely to exist anytime soon now that the proposal for an EU Directive for a European foundation statute was rejected by the member states in November 2014. However, the flexibility of Dutch foundation law makes it possible to set up a "European" foundation under Dutch law that may be recognized in many European member states as comparable to a national tax-exempt organization that supports a general interest cause.
International NGOs are among the organizations that set up a Dutch foundation or association to give their worldwide activities a supranational governance. Such foundations and associations do not actually have to be active in the Netherlands.
Read more: Public benefit organizations: ANBI; International NGOs.