For donors abroad, gifts in foreign currency, "friends of" organizations and overseas partners
International donations: acknowledging gifts that cross a border
A gift from Toronto or Berlin gets the same acknowledgment as a gift from Toledo — the rules in IRC §170(f)(8) follow the gift, not the donor's address. What changes is everything around the letter: the amount must be stated in US dollars, the donor may or may not be able to use the receipt at home, and a US donor who wants to help your partner abroad can deduct the gift only if your board — not the donor — controls where the money goes (IRC §170(c)(2)(A); Rev. Rul. 63-252). Four templates below: the letter to a donor outside the US, the foreign-currency acknowledgment, the "friends of" letter with the discretion-and- control language, and the kind reply to a donor whose gift to a foreign charity is not deductible.
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Who gave, where it went, and what to send
| Situation | US tax character | What you send |
|---|---|---|
| Donor living abroad gives US dollars to your US charity | Ordinary gift to a US charity; deductible by the donor only on a US return (Form 1040-NR, §873(b)(2)) or if a treaty helps at home | Standard acknowledgment with country line (template 1) |
| Donor gives in euros, pounds, Canadian dollars… | Gift equals the US-dollar value on the date received, before bank fees | Acknowledgment stating USD amount, original currency and rate (template 2) |
| US citizen or green-card holder living abroad | Taxed by the US on worldwide income; ordinary deduction | Standard acknowledgment |
| Canadian resident gives to your US charity | Claimable in Canada under treaty Article XXI, generally against US-source income | Standard acknowledgment; optional Canada paragraph |
| US donor gives directly to a foreign charity | Not deductible for US income tax (§170(c)(2)(A)) except Canada/Mexico/Israel treaty cases | You send nothing — you did not receive it; reply letter if asked (template 4, version A) |
| US donor gives to you "for" a named foreign organization and you must pass it on | Conduit — treated as a gift to the foreign organization; not deductible (Rev. Rul. 63-252) | Reply offering the controlled-grant path or a refund (template 4, version B) |
| US donor gives to your "friends of" organization with a recommendation | Deductible when your board has discretion and control (Rev. Rul. 66-79; 75-65) | Friends-of acknowledgment (template 3) |
| Bequest to a foreign charity | Estate-tax deduction allowed — §2055 has no domestic requirement | Not your letter unless you are the recipient; see Bequests page |
| Grant from a foreign foundation or government | Contribution to you; funder takes no US deduction; foreign-government gifts count as governmental public support (Rev. Rul. 75-435) | Grant receipt confirming amount, date, purpose |
| Property shipped from abroad (art, equipment, foreign shares) | In-kind gift; Form 8283 rules if the donor is a US taxpayer | In-kind acknowledgment, described, no value |
The three rules behind every cross-border gift
1. The deduction belongs to US organizations
IRC §170(c)(2)(A) allows the income-tax charitable deduction only for gifts to an organization "created or organized in the United States or in any possession thereof, or under the law of the United States, any State, the District of Columbia, or any possession." A US donor's gift mailed straight to a hospital in Nairobi or a school in Oaxaca is generous and not deductible. Treaties with Canada, Mexico and Israel carve out limited exceptions, each tied to income from that country. Estate and gift tax (§2055, §2522) have no such limit.
2. A conduit is not a charity — control is what counts
The IRS looks through a US charity that merely forwards earmarked money to a foreign organization and treats the gift as made to the foreign organization (Rev. Rul. 63-252). The gift is deductible when the US charity solicits for its own purposes, its board reviews and approves each grant on the merits and may refuse or redirect it, the grant goes out under a written agreement, and the grantee reports back (Rev. Rul. 66-79; Rev. Rul. 75-65). This is why "American Friends of …" organizations exist, and why their letters say the donor's recommendation is not binding.
3. The letter speaks in US dollars, to whoever gave
A donor outside the US gets the same acknowledgment as anyone else; the regulation requires the amount of cash, so a foreign-currency gift is converted at the rate on the day it arrived and acknowledged gross of bank fees. Whether the donor can use the letter depends on where they file: Form 1040-NR filers may deduct under §873(b)(2); Canadians have Article XXI; UK donors get no Gift Aid on a direct gift; most others get nothing at home and give anyway.
Acknowledgment to a donor outside the United States
The standard letter with an international address block, the US-dollar amount, a plain statement of what the letter is for, and optional paragraphs for Canadian donors (Article XXI), UK donors (no Gift Aid) and US expatriates. Delete the paragraphs that do not apply.
[Organization letterhead — name, US address, EIN] [Date] [Donor name] [Street address] [City, region, postal code] [COUNTRY — in capitals, on its own line] Dear [First name], Thank you for your gift to [Organization name]. Distance has not kept you from supporting [one line on the work], and we are grateful. This letter acknowledges your contribution of US $[amount] received on [date received] [by wire transfer / by credit card / by check drawn on [bank]]. [If the gift arrived in another currency: Your gift of [currency] [amount] was converted to US $[amount] at the exchange rate on [date].] No goods or services were provided in exchange for this contribution. [Organization name] is a tax-exempt charitable organization described in Section 501(c)(3) of the United States Internal Revenue Code, EIN [00-0000000]. This letter is the written acknowledgment required for a charitable deduction on a United States income tax return. Whether the gift is deductible or creditable where you live is a question for your own tax adviser; we have included a few notes below. [Optional — Canadian donors: Under Article XXI of the Canada–United States Income Tax Convention, a resident of Canada may generally claim gifts to a US charity, but only against income from US sources (an exception applies to gifts to a US college or university at which you or a family member is or was enrolled). The Canada Revenue Agency does not issue registration numbers to US charities; this letter is the receipt to keep.] [Optional — UK donors: Gift Aid applies only to charities recognised by HMRC, so it is not available on a gift made directly to a US charity.] [Optional — US citizens and green-card holders living abroad: you remain subject to US income tax and may claim this gift on your Form 1040 under the ordinary rules.] [Optional — a sentence about what the gift will do.] With thanks from all of us, [Signer name] [Title] [Organization name]
Acknowledgment of a gift received in foreign currency
States the original currency and amount, the date received, the exchange rate and its source, the resulting US-dollar value — the figure the donor deducts — and, if your bank took a fee, that the fee does not reduce the gift.
[Organization letterhead — name, US address, EIN] [Date] [Donor name] [Address] [COUNTRY] Dear [First name], Thank you for your gift to [Organization name]. On [date received] we received your [wire transfer / cheque no. [0000] / card payment] of [currency and amount, e.g. EUR 1,000.00]. At the exchange rate on that date ([rate, e.g. 1 EUR = 1.08 USD], [source, e.g. the rate published by our bank / the US Treasury]), the gift had a value of US $[amount], which is the amount this letter acknowledges. [If your bank deducted a conversion or wire fee: Our bank deducted a fee of US $[fee] before crediting our account; that fee does not reduce your gift, and the full US $[amount] is acknowledged here.] No goods or services were provided in exchange for this contribution. [Organization name] is a tax-exempt charitable organization described in Section 501(c)(3) of the United States Internal Revenue Code, EIN [00-0000000]. Please keep this letter with your tax records. With gratitude, [Signer name] [Title] [Organization name]
'Friends of' acknowledgment with discretion-and-control language
For a US organization that funds work abroad: acknowledges the gift to the US charity, records the donor's recommendation, states that the board retains full discretion and control and may decline or redirect it (Rev. Rul. 63-252; Rev. Rul. 66-79), and optionally reports the board's approval.
[Organization letterhead — name, US address, EIN] [Date] [Donor name] [Address] Dear [First name], Thank you for your contribution of $[amount] to [US organization name, e.g. American Friends of [Foreign Organization]] received on [date]. We understand you made this gift with a recommendation that it support [program / project / partner organization and country]. [US organization name] is an independent United States charity. Its board of directors reviews every grant request on its merits, retains full discretion and control over the use of all contributions, and may decline any recommendation or direct funds to another project that advances our charitable purposes. Grants we make abroad are made under written agreements that require reports on how the funds were used. Your recommendation is welcome and will be given careful consideration, but it is not binding on us. [If the board has already approved: We are pleased to tell you that at its [date] meeting the board approved a grant of $[amount] to [grantee] for [purpose].] No goods or services were provided in exchange for this contribution. [US organization name] is a tax-exempt organization described in Section 501(c)(3) and Section 170(c) of the Internal Revenue Code, EIN [00-0000000]. Contributions to it are deductible as charitable contributions for United States federal income tax purposes to the extent permitted by law. Please keep this letter with your tax records. With gratitude, [Signer name] [Title] [US organization name]
Reply to a donor whose gift to a foreign charity is not deductible
Two versions: the donor gave directly to the foreign organization (you received nothing and cannot acknowledge it; §170(c)(2)(A)), or the donor asks you to pass money through to a named foreign organization (conduit; offer the controlled-grant path or a refund). Both end by offering a deductible way to support the same work.
[Organization letterhead — name, US address, EIN] [Date] [Donor name] [Address] Dear [First name], Thank you for your generosity toward [foreign organization / the people of [place]], and for asking us about a receipt. We want to give you a straight answer so there is no surprise at tax time. [Version A — the gift went directly to the foreign organization:] Because you sent your gift directly to [foreign organization], which is organized under the laws of [country], [Organization name] did not receive it and cannot issue an acknowledgment for it. Under United States law, an income-tax charitable deduction is available only for gifts to organizations created or organized in the United States (Internal Revenue Code Section 170(c)(2)(A)), so a gift made directly to a charity abroad is generally not deductible on a US return, however worthy the cause. (Limited exceptions exist under US tax treaties for certain Canadian, Mexican and Israeli charities; your tax adviser can tell you whether one applies.) [Version B — the donor asks us to pass money to a named foreign organization:] We are honored that you would trust us with a gift for [foreign organization]. We have to be careful about how we accept it. If [Organization name] simply forwarded your money to [foreign organization] at your direction, the IRS would treat us as a conduit and your gift would not be deductible (Revenue Ruling 63-252). What we can do is accept a contribution to [Organization name] with your recommendation that it support [program or partner]; our board then decides, under its own grant procedures, whether and how to fund that work. If the board approves the grant — and we expect it will, because [one line] — your gift is a deductible contribution to a US charity. Please let us know whether you would like us to treat your gift that way, or return it. [Both versions:] If you would like to support this work with a gift that is deductible in the United States, [Organization name] funds [program] through grants it reviews and controls, and we would be glad to send an acknowledgment for a contribution made to us. Thank you again for caring about [cause]; we are glad to help however we can. Sincerely, [Signer name] [Title] [Organization name]
International rows in the generator
Paste your spreadsheet as usual. A donor whose address ends in a country name, carries a Canadian postal code or reads like a UK address gets an information flag: the letter is correct as written, and the flag summarizes the home-country notes (Form 1040-NR and §873(b)(2), Article XXI, no Gift Aid) in case the donor asks. An amount typed as €100, £50, CAD 250 or "300 euros" is still read as a number so the row is not lost, but the gift gets a red WARNING: the letter must state the US-dollar value received, so convert at the rate on the gift date and replace the figure before you send. Amounts with $, US$ or USD are untouched.
International donation questions
A donor in Canada (or England, or Germany) gave us $500. Do they get the same letter as everyone else?
Yes. The acknowledgment rules in IRC §170(f)(8) attach to the gift, not to the donor's passport or address: amount in US dollars, date, your name and EIN, and the statement that no goods or services were provided (or a description and good-faith estimate of what was). Put the country in capitals on the last address line for international mail, and add an optional paragraph about home-country rules if you like. The generator produces the standard letter and adds an information flag when the address looks foreign.
Can a foreign donor actually deduct a gift to a US charity?
Only if they file a US income tax return. A nonresident alien who files Form 1040-NR may claim the charitable deduction for gifts to US charities under IRC §873(b)(2), subject to the ordinary limits. A foreign donor who owes no US tax has nothing to deduct it against; whether their own country gives relief is a home-country question. US citizens and green-card holders living abroad are taxed by the US on worldwide income and claim the gift on their Form 1040 like anyone else.
What about Canadian donors specifically?
Article XXI of the Canada–United States Income Tax Convention lets a resident of Canada claim gifts to a US charity (one that would qualify as a registered charity if it were Canadian) on the Canadian return, but generally only against income from US sources — except gifts to a US college or university at which the donor or a family member is or was enrolled, which are treated like gifts to a Canadian charity. The Canada Revenue Agency does not register US charities or issue them registration numbers; your ordinary US acknowledgment is the receipt the donor keeps. Pub 526 describes the mirror-image rule for US donors giving to Canadian charities.
Does UK Gift Aid apply to a gift to our US charity?
No. Gift Aid is available only for gifts to charities recognised by HMRC. A UK taxpayer who wants both US and UK relief gives through a dual-qualified charity (a UK charity with a US 501(c)(3) affiliate, or a donor-advised fund that operates in both countries); a gift sent directly to a US-only charity earns no Gift Aid and should not be claimed.
A donor wired us euros. What amount goes in the letter?
The US-dollar value of the gift on the date you received it. Treas. Reg. §1.170A-13(f)(2) requires the acknowledgment to state the amount of cash contributed, and a US deduction is measured in dollars. Convert at the exchange rate on the date of receipt (your bank's rate for the transaction is fine; keep the source), state the original currency amount for the donor's records, and acknowledge the gross value — a wire or conversion fee your bank deducts does not reduce the donor's gift, just as a credit-card processing fee does not. If a spreadsheet row is typed as €100 or CAD 250, the generator parses the number, flags the row in red, and asks you to replace it with the converted dollar figure.
What is the date of a gift that came from abroad?
For a check, the date it was mailed if it clears in due course (Treas. Reg. §1.170A-1(b)); use the postmark or the date on the envelope. For a wire or card payment, the date the funds were irrevocably transferred, which in practice is the date they posted to your account. A gift mailed on 30 December and received on 9 January belongs to the earlier year; a wire initiated on 31 December that posts on 2 January belongs to the new year unless the donor can show the transfer was out of their control on the 31st.
A US donor wants to give to our partner orphanage in Guatemala and get a US deduction. Can we just forward the money?
Not if you want the gift to be deductible. A US charity that simply passes contributions to a foreign organization at the donor's direction is a conduit, and the IRS treats the gift as made to the foreign organization — not deductible (Rev. Rul. 63-252). The gift is deductible when your board exercises real discretion and control: it reviews and approves grants on their merits, may decline or redirect them, funds them under a written agreement, and gets reports on their use (Rev. Rul. 66-79). Solicit for your own program that happens to work in Guatemala, treat donor requests as recommendations, and document the board's decisions. The Friends-of template has the language.
Why can't a US donor deduct a gift made directly to a foreign charity?
Because IRC §170(c)(2)(A) limits the income-tax deduction to organizations created or organized in the United States or under US or state law. Congress tied the deduction to organizations the IRS can supervise. Three treaties loosen this: gifts to qualifying Canadian charities (deductible, generally against Canadian-source income), Mexican charities (against Mexican-source income) and Israeli charities (up to 25% of Israeli-source income) — all explained in Pub 526. Estate and gift tax are different: IRC §2055 and §2522 have no domestic-organization requirement, so a bequest to a foreign charity can qualify for the estate-tax deduction.
We received a grant from a foreign foundation or a foreign government. Any special rules?
Your acknowledgment is the ordinary grant receipt — the foreign funder is not taking a US deduction, so the §170 wording matters less than confirming amount, date and purpose for its records. For your own filings, contributions from a foreign government count as support from a governmental unit in the public-support test (Rev. Rul. 75-435), and a foreign foundation's gift is a contribution from a single source subject to the 2% limit like any other. Report the donor on Form 990 Schedule B if its gifts cross the Schedule B threshold; Schedule F is about money you send abroad, not money you receive.
When does Form 990 Schedule F come in?
When your organization conducts activities outside the United States. Part I is required if you had more than $10,000 of aggregate revenues or expenses from foreign activities (grants, program services, investments, employees abroad); Part II lists grants to foreign organizations of more than $5,000; Part III covers grants to foreign individuals. Receiving gifts from foreign donors does not by itself trigger Schedule F. Form 990-EZ filers do not file Schedule F.
Do we need an 'equivalency determination' or 'expenditure responsibility' before granting abroad?
Those are private-foundation rules (IRC §4945). A public charity is not legally required to use them, but it must exercise the discretion and control described above, should screen grantees against the Treasury OFAC sanctions lists, and should keep a written grant agreement and reports — the practices in Treasury's Anti-Terrorist Financing Guidelines. Many public charities borrow the private-foundation tools anyway because they produce clean records.
A donor abroad gave us property — shares, art, equipment. Anything different?
No. Describe the property without stating a value, as for any in-kind gift. If the donor is a US taxpayer, the Form 8283 and appraisal rules apply above $500 and $5,000 as usual, and shipping or customs costs the donor paid are part of their cost, not your receipt. Foreign securities gifted to you are acknowledged by description (issuer, number of shares, date received), same as US stock.
Our treasurer lives in Puerto Rico / a donor is a bona fide resident of a US territory. Does that change anything?
Not for your letter. Puerto Rico, Guam, the US Virgin Islands, American Samoa and the Northern Mariana Islands are 'possessions' for §170(c) purposes, so an organization organized there qualifies, and residents of the territories follow their own tax rules for claiming the gift (a bona fide resident of Puerto Rico who files only with Hacienda, for example, claims it there). Send the same acknowledgment.
General information based on Internal Revenue Code §§170(c)(2)(A), 170(f)(8), 873(b)(2), 2055, 2522 and 4945; Treas. Reg. §§1.170A-1(b) and 1.170A-13(f); Revenue Rulings 63-252, 66-79, 75-65 and 75-435; the United States income tax treaties with Canada (Article XXI), Mexico and Israel; Form 990 Schedules B and F instructions; and IRS Publications 526 and 1771. Foreign tax rules (CRA, HMRC and others) change and are summarized only. Not legal, tax or accounting advice.