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| Philanthropy |
Foreign Policies
Matthew Schuerman
06/01/2004
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The very existence of grassroots
groups in countries scarred by poverty and political repression testifies to an
inspiring degree of civic spirit. It also means that donors are likely to find
indigenous representatives to communicate with instead of parachuting in with
solutions to problems locals do not even think exist. Nonetheless, donors may
find themselves uncomfortably confronted with a modern version of the “white
man’s burden.” Intervention by its very nature will change a culture. It might
seem to us a change for the better, but it is important to consider how local
inhabitants will experience the trade-offs, whether or not they are aware of
them. An isolated tribe may unanimously vote in favor of accepting a satellite
radio, but five years in the future, members may have lost their storytelling
tradition in favor of listening to soccer scores on the BBC.
Bureaucratic Hurdles
Pragmatically speaking, the loose structure—and loose
bookkeeping—of some foreign organizations make it tricky for donors to satisfy
U.S. legal philanthropy requirements. In order to claim a tax deduction or, in
the case of a foundation, award a legitimate grant, the donor must be ready to
prove that the recipient is essentially the equivalent of a nonprofit
organization as defined by U.S. law, or that the grant in question went toward a
charitable purpose. The Patriot Act and related regulations prohibit giving to
groups or individuals that appear on the government’s lists of suspected
terrorists. The Treasury Department issued voluntary guidelines for foundations
to make sure they do not cross those laws, but several large foundations have
criticized the guidelines as onerous and vague. The guidelines should, for
example, be of greatest concern for those bestowing grants in regions such as
the Middle East or Indonesia, where terrorists have a substantial presence. Yet
the Treasury did not make any exceptions for philanthropy in less risky
countries.
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