TechSoup Global

We recommend a renewal grant to TechSoup Global for its continued work on developing NGOSource, a centralized repository of equivalency determinations (a process by which a U.S. foundation can make a grant to a foreign organization and treat the grant recipient as if it were the equivalent of a U.S. public charity). In the absence of an equivalency determination, the foundation is required to exercise expenditure responsibility, which imposes limitations on the use of the funds and burdens the grantee with additional record keeping and reporting requirements. Now completing the second year of a multiyear business plan toward sustainability, TechSoup Global’s NGOSource will allow U.S. grantmakers to make grants to international NGOs through more cost-effective and reliable means. It will also serve non-U.S. grant seekers by decreasing the redundant work currently required for each equivalency determination and by increasing their access to U.S. grantmakers. For the Hewlett Foundation specifically, the establishment of NGOSource will allow our program staff to provide more flexible funding to international grantees and decrease the amount of oversight that is currently required through expenditure responsibility. To date, TechSoup Global has been successful in raising capital, developing its business plan and systems, and taking steps toward gaining regulatory approval. This renewal grant will allow TechSoup to continue its important work.

Renewed funding for TechSoup Global would support the first year of operations for NGOSource, a centralized repository of equivalency determinations that enables U.S. foundations to make grants to foreign organizations without the need to ensure expenditure responsibility (which imposes limitations on the use of the funds and burdens grantor and grantee alike with additional recordkeeping and reporting requirements). NGOSource will allow U.S. grantmakers to make grants to international NGOs more reliably and cost effectively. It will also reduce redundant work for non-U.S. grantseekers, while increasing access to U.S. grantmakers. The IRS has now granted regulatory approval, enabling TechSoup to launch this new service.

Renewed funding for TechSoup Global would allow its continued work to develop NGOSource, a centralized repository of equivalency determinations (a process by which a U.S. foundation can make a grant to a foreign organization and treat the grant recipient as if it were the equivalent of a U.S. public charity). In the absence of an equivalency determination, the foundation is required to exercise expenditure responsibility, which imposes limitations on the use of the funds and burdens the grantee with additional recordkeeping and reporting requirements. NGOSource will allow U.S. grantmakers to make grants to international NGOs through more cost-effective and reliable means. It will also serve non-U.S. grantseekers by decreasing the redundant work currently required for each equivalency determination and by increasing their access to U.S. grantmakers. TechSoup Global has built out the repository and is awaiting final regulatory approval from the IRS before launching the service.