Community Foundation of New Jersey

Affiliation with Philanthropy Directions International

The Community Foundation of New Jersey is pleased to announce an affiliation with Philanthropy Directions International (PDI) in order to provide our donors with opportunities in international charitable giving. In the past, grants from CFNJ donor advised funds for international work have been limited to U.S. registered charities that are doing work internationally. This precluded grants to localized, non-US charities that you may know or have encountered in your travels. We are all aware that we live in a global society, and as a result we have seen a substantial increase in donors interested in making grants to nonprofits located outside the US. As PDI states, “the flow of domestic dollars overseas in support of vibrant, essential and efficient social interventions has never been higher. Small strategic investments can go a long way toward alleviating wide swaths of suffering.” With our new affiliation, CFNJ is now able to assist you in making global grants from your Donor Advised Fund.

PDI is a non-profit organization that will assist CFNJ donors with finding or vetting small, non-U.S. charities that are having a tremendous impact in their communities. Examples include the Darwin Primate Group, which is dedicated to protecting species of primates in South Africa, particularly injured and orphaned vervets and baboons, and Friends for Street children in Vietnam, which operates schools for children living on the streets in abject poverty. PDI can also help in finding legitimate nonprofits in other countries that would be a match for a donor’s focus on a specific field of nonprofits (i.e. healthcare or children) or a specific region. The analysts at PDI do all the necessary due diligence to insure that potential nonprofits are thoroughly examined, and then PDI acts as the steward for the actual transfer. The due diligence process includes phone calls to the leaders of the nonprofits, an analysis of sustainability, an analysis of the current stability of the nonprofits’ countries, and a financial analysis of the organizations. If a specific nonprofit is approved, PDI will provide a certificate of compliance that confirms that the donation is consistent with Non-Government Organization Standards, the U. S. government’s anti-terrorism financing initiatives and the Treasury Department’s Voluntary Guidelines on International Giving. PDI’s involvement with the stewardship process includes arranging for the wire transfer from the donor advised fund, and confirming the actual receipt of the funds.

The standard rate of compensation to PDI for its due diligence work is $125/hour, which would be paid for from your donor advised fund. CFNJ will act as the facilitator in this process. To give you an estimate for the time involved, it would take about 2 ½ to 3 hours to perform the due diligence and stewardship process of a UK nonprofit. Nonprofits in the less-developed or emerging countries may require a significantly higher time allocation. The most important factor in time allocation is the stability of the country, and the sophistication and size of the nonprofit. These upfront expenses may be warranted if you plan on having a long-term grant making relationship with the nonprofit.

Please contact Nancy Hamilton at 973.267.5533, x240, or by e-mail at nhamilton@cfnj.org if you have any questions.