It comes as no surprise when we look at the conversation surrounding nonprofits that much has been said about the importance of fundraising to sustain an organization and help it grow. Philanthropy has been around since ancient times of course, with the origins of the word itself giving us the brief history lesson.
What might be a newer addition to the story is the possibility of providing cost efficient, tax effective giving across borders. And certainly when we speak about Greece, there is no ignoring the steady philanthropic attention of those based outside of the country: the diaspora, philhellenes, and other interested parties. One such donor market that should be on a Greek organization’s radar is the United States.
Fundraising in the United States is a well-established practice, with charitable giving reaching an impressive $557.16 billion in 2023 (2023 Giving USA Report). This substantial figure underscores the generosity of American donors, with individuals contributing the largest share (67%), followed by foundations (19%), bequests (8%), and corporations (7%). Tapping into this market can be a viable and promising avenue for foreign nonprofits looking to expand their donor base.
Since 2006, Myriad USA (formerly known as the King Baudouin Foundation United States) has facilitated $10.4 million to Greek nonprofits ranging from cultural institutions, humanitarian relief organizations, and environmental causes among others. Some of this giving has been initiated by corporate donors who seek to be good corporate citizens where they have markets or offices. The majority of the giving though is coming from individual donors who are passionate about the work being done in Greece by fantastic organizations. These individuals mostly consist of members of the Greek diaspora (a highly engaged group with strong ties to Greece) and philhellenes passionate about preserving Greece’s incredible cultural heritage and natural environment.
When considering how to tap into this giving, the basic tenets of good fundraising principles come to mind, namely:
Build strong relationships (people give to people!)
Leverage your networks (who do you know and who do they know) and
Clearly articulate your mission and impact (why should they give to you and not to another organization?)
As the late acclaimed fundraiser of New York University Naomi Levine would always tell our partners, you don’t raise money with stamps, you raise it with shoe leather! Meaning, you can’t rely on letters, emails etc. You have to do the work of building the relationships which often is a long game. Online fundraisers are great and certainly serve a purpose (building a pool of contacts, raising awareness, etc.), but building sustainable support with more substantial gifts is very much done on a one by one basis.
If an organization seeks to raise funds in the US, there are two primary options to make sure it is done in a way where you can offer your donor a tax benefit: establishing a public charity or partnering with an intermediary such as Myriad USA.
Creating a US Public Charity (501(c)3): Setting up a nonprofit organization in the US requires incorporation at the state level, obtaining federal tax exemption from the IRS, and complying with state registration and filing requirements. While this approach provides full control over operations and branding, it comes with significant financial and administrative burdens, including an initial setup cost of $3,000-$5,000 and an estimated annual operating cost of at least $25,000. It is most suitable for organizations planning to hire full-time staff or establish a physical presence in the US.
The American Friends Fund Model (AFF): For organizations seeking a more cost-effective and efficient alternative, an American Friends Fund (AFF) at Myriad USA offers a streamlined solution. Instead of navigating the complex (and expensive) process of establishing a separate legal entity, foreign nonprofits can partner with Myriad USA to receive tax-deductible donations from US donors. This low-risk approach eliminates the need for independent tax filings, board meetings, and compliance with public support tests, making it an attractive option for nonprofits looking to focus on their mission while still benefiting from the generosity of American donors.
With an AFF, nonprofits gain access to a dedicated fund manager with regional expertise, a customizable online donation platform, and opportunities for engagement through events and networking. Setting up an AFF cuts the start-up time for your fundraising efforts to generally under 5 weeks. The flexibility of this model ensures that organizations of all sizes can tap into the vast US donor market without the operational complexities of running a separate nonprofit entity.
Currently in Greece Myriad USA is partnered with a number of nonprofit organizations who rely on the AFF model. These include the Benaki Museum, Desmos, Mazi gia to Paidi, and the Herakleidon Museum among others. This tool has allowed these partners to tap into potential networks here and raise funds in an easy, tax beneficial way.
Beyond the US market, cross border philanthropy is possible via members of the Myriad Alliance network. Organizations in Greece can offer tax deductions to their donors in Canada (via Myriad Canada), Australia (via Myriad Australia), New Zealand (via the Gift Trust), and Hong Kong (via Give2Asia Hong Kong).
For gifts from Europe, the Transnational Giving Europe is an excellent tool that can be accessed through HIGGS.
Whether donors are based in the US, Australia, Greece or anywhere really, I encourage organizations to focus on the basic tenets of fundraising, namely relationship building. When those relationship building blocks are in place, the mechanics of making sure a donor’s gift can be received in a cost-effective and tax efficient way can be entrusted to reliable, experienced partners.
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Ellena E. Fotinatos is the COO and Europe Lead for Myriad USA, an organization dedicated to promoting American philanthropy globally. She is a an active member of the Greek diaspora and welcomes the opportunity to connect with Greek nonprofits. ellena@myriadusa.org
Ellena Fotinatos,
COO and Europe Lead, Myriad USA
