GuidesFundraising for International Aid Organizations

Fundraising for International Aid Organizations

Most small international aid organizations raise money in one country and spend it in another. A school in Haiti, a clinic in Uganda, or a scholarship fund in Guatemala often depends on a small US nonprofit that collects gifts from American donors and sends the money to the program.

Fundraising for an international organization comes down to four things: a US structure that makes gifts tax-deductible, monthly donors who cover the program's monthly costs, regular news from the field, and low fees, so more of each gift reaches the program. This guide covers each one, with examples from organizations that run Haiti programs on MemberDrive.

In this guide:

  1. Get the structure right, so gifts are tax-deductible
  2. Build on monthly giving
  3. Bring the field to your donors
  4. Let your supporters recruit for you
  5. Plan for emergencies before they happen
  6. Keep fees low, and send money with care

1. Get the Structure Right, So Gifts Are Tax-Deductible

US donors ask one question before almost any other: Is my gift tax-deductible? For an international program, the answer depends on who receives the gift.

The IRS says that individuals cannot deduct gifts to foreign organizations, except certain charities in Canada, Israel, and Mexico. A gift made directly to a school in Haiti is not deductible on a US tax return.

A gift to a US 501(c)(3) that runs or funds a program abroad can be deductible. The IRS sets two conditions:

  • The US organization must approve the program as part of its own exempt purpose.
  • The US organization must keep control of how the money is used. A gift that the donor earmarks to pass through to a foreign charity is not deductible.

Small aid organizations usually use one of three structures:

Structure How it works Good for
Your own US 501(c)(3) A Friends of [Program] nonprofit with its own US board. The board approves the program and decides how money is sent. Programs that will raise money for many years
A fiscal sponsor An existing US charity accepts gifts for your program and sends the money under its own control, usually for a fee. New programs that do not have their own 501(c)(3) yet
A US partner charity A church or larger nonprofit adds your program to its own work. Programs started by a church or mission team

Whichever structure you use, write it down. Keep board minutes that approve the program, a written agreement with the partner abroad, and receipts or reports that show how the money was spent. Talk to an accountant or attorney who knows international grantmaking before you set this up. This guide is not legal or tax advice.

2. Build on Monthly Giving

Programs abroad have monthly costs: teacher salaries, rent, food, medicine, and school fees. An annual gala or a single year-end appeal pays for these costs with one large gift a year. If the appeal is weak, the program feels it for twelve months.

Monthly donors fix this. Their gifts arrive on a schedule that matches the program's costs, and they continue until the donor chooses to stop.

Make monthly gifts specific. Tie each level to something the program pays for, and use your own real costs:

Level Monthly gift What it pays for (use your own numbers)
Friend $25 a month School supplies for one student
Sponsor $50 a month One student's share of a teacher's salary
Partner $100 a month One university scholarship

The PEACE Project in Haiti runs its support as a membership. The PEACE Project provides education in Carrefour, near Port-au-Prince. Members give on a schedule, and they manage their own giving: they update a card or change an amount without emailing the volunteers who run the organization.

Ask your current donors to move from one gift a year to a monthly gift. The donors who already give every year are the most likely to say yes. For more on how to ask, see how to increase online donations.

3. Bring the Field to Your Donors

Your donors cannot see the program. Most of them will never visit it. Regular updates from the field show them that the money arrives and does good work, and that is what makes a monthly donor stay.

  • Post one update a month. A photo of a classroom, a short note from a teacher, or a student's story is enough.
  • Name the result. Your gifts paid for 40 scholarships this term is stronger than Thank you for your support.
  • Plan for slow internet. Staff in the field often have unreliable connections. Ask them to send photos and short notes by WhatsApp or email, and let a volunteer in the US post them.
  • Tell the hard news too. Donors who hear about a hurricane or a fuel shortage from you trust you more than donors who hear about it on the news first.

4. Let Your Supporters Recruit for You

A small aid organization usually grows through people who have a personal tie to the country: mission trip alumni, church members, the diaspora, and returned volunteers. Each of them knows other people who will care.

Give every supporter a personal link to share. When a friend gives through that link, the gift counts toward the supporter's total. A leaderboard lets supporters see who has brought in the most gifts.

Hope for Haiti, run by LETS, uses this model. Every supporter gets a personal link, and supporters who share it climb the campaign's leaderboard. The page asks people to give, to share their link, or both.

Mission trip teams are a good place to start. Ask each team member to share a personal link with friends and family before and after the trip, when their interest is highest.

5. Plan for Emergencies Before They Happen

Hurricanes, earthquakes, floods, and political crises bring large, sudden waves of gifts. After the crisis leaves the news, most of those gifts stop. Plan for both parts:

  • Prepare the emergency page now. Write the text and choose the photos before the next hurricane season, so you can launch on the first day.
  • Line up a match. Ask one or two major donors to agree in advance to match emergency gifts up to a set amount. A matching gift campaign with a deadline gives people a reason to give now.
  • Turn emergency donors into monthly donors. In your thank-you message and your updates, ask emergency donors to stay on as monthly supporters. Explain that recovery takes years, not weeks.
  • Say how emergency gifts will be used. If gifts may go to recovery or to your regular program, say so on the page.

6. Keep Fees Low, and Send Money With Care

Every dollar lost to fees is a dollar that does not reach the program. Check the full cost of each platform: the platform fee, the card processing fee, any monthly subscription, and the fees to send money abroad.

On a program that raises $5,000 a month, a 1% platform fee is $50 a month. A 5% platform fee is $250 a month, or $3,000 a year. For many small programs, that difference pays a teacher. Compare platforms on the fundraising platform comparison page.

When you send money abroad:

  • Send on a schedule. A monthly or quarterly transfer is easier to track and costs less in wire fees than many small transfers.
  • Record every transfer. Keep the date, the amount, the exchange rate, and what the money was for. Match each transfer to a report or receipt from the field.
  • Check sanctions lists. Before you pay a person or organization abroad, search the US Treasury's OFAC sanctions list. This applies in Haiti, where the US has sanctioned gang leaders and their supporters.

A Checklist for International Aid Fundraising

  • A US 501(c)(3), fiscal sponsor, or partner charity that controls how the money is used
  • Board minutes, a partner agreement, and field reports on file
  • Monthly giving levels tied to real program costs
  • One update from the field each month
  • Personal fundraising links for mission teams and supporters
  • An emergency page and a match ready before you need them
  • A record of every transfer abroad, and a sanctions check for each recipient

Fundraise for Your International Program on MemberDrive

MemberDrive is built for small organizations that depend on monthly donors. For an international program, it gives you:

  • Monthly and yearly giving levels, charged automatically by card or bank transfer
  • Donor self-service, so donors update a card or change a gift without emailing you
  • Posts that send field updates to your supporters by email
  • Personal fundraising links and a leaderboard for mission teams and supporters
  • Matching gifts with a deadline, for emergency appeals
  • Giving statements that donors print for their taxes
  • Bitcoin donations, sent directly to your organization's wallet, from donors anywhere in the world

What it does not do: MemberDrive is for US organizations. Card and bank donations are in US dollars through Stripe, so your organization needs a Stripe account in a country that Stripe supports. MemberDrive does not send money abroad, and it does not do grant management or fund accounting.

MemberDrive charges 1% of donations processed, with no monthly fee. Stripe processing fees apply separately. See pricing or start your campaign.

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by MemberDrive Fans