Charitable Contributions to U.S. vs. Foreign Organizations: What Counts for Your U.S. Taxes?

When you support a cause you care about—whether it’s disaster relief abroad, an overseas animal rescue, or a global education nonprofit—it’s natural to assume your generosity will also help at tax time. Unfortunately, that’s not always how the IRS sees it.U.S. tax law draws a sharp line between contributions to U.S.-based qualified charitable organizations and donations to foreign organizations, even when the foreign organization is legitimate and doing important work.

Below is a clear breakdown of how charitable deductions work for Americans who give domestically or internationally, what qualifies, what does not, and how to structure your gifts so they count.

U.S. Charitable Organizations: When Your Donations Are Deductible

For your contribution to be deductible on your U.S. tax return, the organization usually must be:

• Created or organized in the United States, and

• Recognized by the IRS as a 501(c)(3) tax-exempt organization.

You can verify status using the IRS Tax-Exempt Organization Search (TEOS). If it appears there as a qualified organization, your donation is generally deductible if you itemize deductions.

Types of U.S.-based organizations that qualify:

1. Public charities (churches, schools, hospitals, etc.)

2. Private foundations

3. Donor-advised funds

Even if the organization works internationally, as long as the entity is U.S.-based and properly recognized, your deduction is typically safe. For example, if a U.S. nonprofit conducts medical missions in Haiti, your donation to the U.S. parent entity is deductible.

Foreign Organizations: Why Most Donations Aren’t Deductible

The IRS does not allow deductions for donations made directly to:

• Charities organized under foreign law

• NGOs based abroad

• Foreign schools, hospitals, religious groups, or foundations

• International relief organizations that do not have a U.S. registered entity

This applies even if the foreign organization issues a receipt or is considered a nonprofit in its home country.

There are only narrow exceptions:

• Certain Canadian, Mexican, and Israeli charities qualify only if the taxpayer has income from that country covered under a specific tax treaty.

• U.S. taxpayers with income sourced from those countries may be able to deduct contributions made to organizations recognized under those treaty provisions.

For the average taxpayer, however, donations to foreign charities are not deductible.

Important Distinction: U.S. Entity vs. Foreign Branch

Some international charities are structured with:

• A U.S.-based 501(c)(3) that accepts deductible donations, and

• A foreign operating branch that performs the work abroad.

Example: You donate to the U.S. entity → U.S. entity decides how to use funds → You receive a deductible donation.

But if you donate directly to the organization’s overseas branch or foreign bank account, the donation is not deductible.

What About GoFundMe, overseas relief funds, or personal fundraisers?

Most are not charitable deductions because:

• The recipient is usually an individual, not a qualified organization.

• Even when raising funds for causes overseas, the donation does not go to a U.S. 501(c)(3).

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You can still give—just don’t expect a deduction.

How To Support Foreign Causes and Keep Your Deduction

Here are taxpayer-friendly ways to structure your giving:

1. Donate to a U.S.-based organization with vetted international programs. Many large nonprofits operate globally but are U.S.-registered.

2. Use donor-advised funds (DAFs) with global grantmaking capabilities. Many DAF sponsors can make international grants while preserving your tax deduction at the moment you donate to the DAF.

3. Avoid donating directly to foreign bank accounts or foreign entities if your goal is a deduction.

4. Check TEOS before donating—especially for smaller or newer charities.

Record Keeping Still Matters

Even with a U.S. qualified organization, the IRS requires:

• A contemporaneous written acknowledgment for donations of $250 or more.

• A qualified appraisal for non-cash gifts over $5,000.

• Form 8283 for certain larger non-cash contributions.

International giving tends to involve non-cash donations (clothing, equipment, supplies), which often require extra substantiation to count.

Charitable giving should be based on your values—not the tax deduction—but when you understand how the IRS distinguishes U.S. versus foreign organizations, you can support global causes without losing out at tax time. If you have questions about the deductibility of a specific organization or donation, reach out to info@mkhstaxgroup.comfor help.