Transcript Review of the International Giving Marketplace Post 9/11”

ICF: A Case Study of
International Giving to
Mexico
Richard Kiy
International Community Foundation
Reunión Annual de CEMEFI
Nov. 27., 2002
International Community
Foundation (ICF)
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Established in 1990
 Grew out of a donor advised fund at San Diego
Foundation
FY-02 grantmaking: $895,000; 49 grants.
Geographic focus: Asia and the Americas
 Country specialties: Mexico
 Other grantmaking experience: China, India,
Ecuador, Canada, Guatemala and Afghanistan.
 Strategic relationship with Fundación Internacional
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de la Communidad (FIC) en Baja California.
Binational board (3 board members are Mexican
Nationals plus the Consul General of Mexico-San
The role of the ICF:
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Assists family foundations, community
foundations, corporations and individual donors
with charitable giving abroad;
Undertakes necessary due diligence and follow
up to make an overseas grant tax deductible
and to insure that donor is maximizing his/her
social return on investment;
Provides research support for donors exploring
possible international giving opportunities and
community based needs.
ICF Donor Profile
Donors are varied, but they all share one thing in
common, a desire to make a difference beyond our
borders. Some of our donors include:
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Immigrants with ties to their communities of origin;
Companies and individual investors with business
ties/interests overseas;
U.S. retirees with vacation homes in Mexico.
Former expatriates or volunteers (including Peace Corps)
that want to re-connect with the overseas communities
where they once lived;
Individuals inspired by their overseas travel experience;
Californians with Mexico border specific interests;
Interest in foreign affairs.
Service Offerings
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Donor Advised funds
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Field of Interest funds
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Min. initial contribution: US$5,000
Sea of Cortez Fund
Baja California Disaster Relief Fund
Border Environmental Fund
Charitable Remainder Trusts (CRTs);
International Charitable Expenses;
International Employee Giving Programs (e.g.
Sempra);
Customized research support for overseas
charitable giving programs
Typical Donor International Giving Concerns:
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Uncertainty over tax deductibility;
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US-Mexico Tax Treaty of 1996 limits giving to a
donor´s Mexican sourced income unless they use an
intermediary like ICF
Limited knowledge of applicable laws and
regulations a in recipient countries;
Language and cultural barriers;
Challenges in finding qualified non-profits
overseas for a donor’s specific interests;
Costs of doing required due diligence for
potential grantees;
Concerns about corruption;
Fear of the unknown.
FY-02 Grants by Country
China
Afghanistan
Canada
Mexico
Guatemala
Ties That Bind
14%
0%
9%
2%
3%
72%
FY-02 Mexico Grants
5%
31%
64%
BC
BC Sur
Other States
•Other states include:
Chihuhua and Coahuila
• FECHAC 1:1 match for Chihuhua
FY-02 Grants by Area
6%
Environment
18%
41%
35%
Community
Development
Culture
Education
Corporate Giving—
Sempra Energy
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Provides U.S. Parent company with a
philanthropic vehicle to support its Mexican
operations while receiving tax benefit in the US.
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Supports Mexican subsidiaries: Ecogas and Sempra
Mexico
Grantmaking through Sempra International
Community Investment Fund at ICF
Philanthropic initiatives currently being
undertaken in Baja California; Coahuila, and
Chihuhua where the company does business.
Projects funded: Children/youth; environment;
health; education.
Ties that Bind Us
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Program links U.S. Migrant communities with
their communities of origin in Mexico.
Initial work with COCIO, a hometown
association of Oaxaqueños living in San Diego
with roots in the Valle Central de Mexico.
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Micro-credit program in El Trapiche.
Currently also working migrant community from
Zamora, Mich and with California wine grower
on a possible employee matching fund program.
Dr. Juan Hernandez , ICF Board Member Dr. Raul
Hinojosa and project leader, Elsa Payo at community
Reasons to Give Internationally
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Through ICF the tax benefits are the same as giving to a
domestic non-profit
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The needs are great
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High Impact
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Majority of the world's population live on less than two
US dollars a day.
20% of Mexican population live in conditions of
extreme poverty
A dollar goes a lot farther in the developing world than
in the US.
Growing inter-dependencies
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In an age of increased interconnection and migration
Americans are becoming more aware about the need
to give beyond the border
For a growing number of Americans international
giving begins with Mexico.
icf
international
c o mm u ni ty
fo unda tio n
For more information visit:
www.icfdn.org