Nonprofit Law/501(c)3 donation


Can a Canadian NPO give money to a US 501(C) 3 without any restrictions?
We are a mission operation in the US that works in Haiti, We have a donor in Canada that wants to make a $37K(US) donation. He does not have any US income to declare it against so in order to get a deduction, he has to give it to a Canadian charity. Can that organization then forward the moniesa to us without any restrictions?
Thank you
Tom Larson
West Indies Self Help

I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations.  Yours is about a Canadian charity forwarding money to a U.S. charity and you are asking how the Canadian government would treat that series of transactions.  I will answer as to the reverse situation (how the IRS would treat a U.S. 501(c)(3) organization that funnels funds to a Canadian charity) and you can check with a Canadian attorney as to how the Canadian government would treat them as to what you are inquiring about.

 The IRS has a policy that it will not grant or allow exemption to
continue under 501(c)(3) for U.S. organizations that merely funnel
funds to a particular named foreign organization.

Therefore, you could solicit funds, listing a bunch of foreign
organizations that you have already approved and inform potential
donors that they may request that their donations go to a
particular foreign organization that they name, but your
organization will always have discretion as to granting their

See the IRS publication at
wd/0504031.pdf for details about international grants to and
international activities of U.S. exempt organizations, and,
especially page 3-4 about grants to foreign organizations starting
on page 3 at "Deductibility - Control Rules":

--- Start of Excerpt ---
Contributions to a section 501(c)(3) organization that transmits
the funds to a foreign charitable organization are deductible only
if it can be shown that the contribution is in fact to or for the
use of the domestic organization, and that the domestic
organization is not serving as an agent for, or conduit of, a
foreign charitable organization. Rev. Rul. 63-252, 1963-2 C.B. 101.

Harvey Mechanic
Attorney at Law

P.S. This response is intended to be a general statement of law, should not be relied upon as legal advice and does not create an attorney/client relationship. For me to consider your individual situation and how the law applies, I would need to gather more information.

Nonprofit Law

All Answers

Answers by Expert:

Ask Experts


Harvey Mechanic


DO NOT GIVE ME INFORMATION THAT YOU WANT KEPT CONFIDENTIAL. I am an attorney and I volunteer time to answer general questions about U.S. Federal income tax issues of nonprofit 501(c)(3) public charities only. Those questions could be about establishing and maintaining legal requirements for such non-profit organizations in the United States, including Internal Revenue service filings and requirements. I will not be working on this free forum to answer questions about Nonprofit's possible unrelated or for-profit businesses or how to fill out forms. This forum is only for general questions about federal tax law, not as the law applies to your specific situation. If you do not make your question public then I will not be spending much of my donated time on answers that would not benefit the public. If you have other questions, please contact me at I will reply from my email. In any case, do not reveal confidential information to me until after I have contracted with you to provide personal legal services. My responses on this forum are intended to be general statements of law, should not be relied upon as legal advice, and do not create an attorney/client relationship. For me to consider your individual situation and how the law applies, I would need to gather extensive information about the situation. To search my previous answers you can do a Google search by "" without the quotes and then add your search terms before hitting enter.


I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar and I have maintained my status with the Bar since that time.


B.S. Columbia University in New York City, 1970

J.D. (Law Degree) Brooklyn Law School, 1990 -- Cum Laude.

©2017 All rights reserved.