Navigating Risk in Cross-Border Grantmaking

Cross-border philanthropy opens the door to powerful, high-impact giving—but it also comes with added layers of complexity. When foundations and donors fund work internationally, they must consider legal, financial, and reputational risks that don’t always surface in domestic grantmaking. At Paragon Philanthropy, we help clients move forward with clarity and confidence, ensuring their international giving aligns with both their mission and their risk tolerance.

One of the most common challenges in cross-border grantmaking is navigating regulatory compliance. U.S.-based funders must meet IRS requirements when supporting non-U.S. organizations, often through expenditure responsibility or equivalency determination. Both approaches are viable, but each carries tradeoffs in terms of administrative burden, timeline, and documentation. We guide clients through these options, helping them choose a pathway that meets their goals without compromising integrity or efficiency.

Beyond compliance, risk in cross-border giving also includes political, cultural, and operational considerations. Local laws can shift quickly. Bank transfers may face unexpected delays. A partner’s on-the-ground realities might differ from initial assumptions. This is where strong due diligence, thoughtful relationship-building, and contingency planning make a meaningful difference. Our approach emphasizes proactive communication and adaptive strategies to help mitigate surprises before they become setbacks.

Ultimately, cross-border giving should not be avoided because of complexity—but it should be approached with care. Global philanthropy has the potential to fuel bold, systemic change, especially in underfunded regions and movements. At Paragon Philanthropy, we believe in supporting clients who are ready to take that leap—responsibly, creatively, and with the right guardrails in place.