1. Presented by: Timothy A. A. Stiles, KPMG LLP ’s Global Grants Program Hanoi, Vietnam 06 February 2007 Presented by: Timothy A. A. Stiles, KPMG LLP ’s Global Grants Program Hanoi, Vietnam 06 February 2007 G L O B A L G R A N T S P R O G R A M T A X Management for Development Results – The Private Sector

2. 1 ANY TAX ADVICE IN THIS COMMUNICATION IS NOT INTENDED OR WRITTEN BY KPMG TO BE USED, AND CANNOT BE USED, BY A CLIENT OR ANY OTHER PERSON OR ENTITY FOR THE PURPOSE OF (i) AVOIDING PENALTIES THAT MAY BE IMPOSED ON ANY TAXPAYER OR (ii) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PARTY ANY MATTERS ADDRESSED HEREIN. The information contained herein is general in nature and based on authorities that are subject to change. Applicability to specific situations is to be determined through consultation with your tax adviser. © 2007 KPMG LLP, a US limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. Printed in the U.S.A.

3. 2 Overview Private Sector is a major player in international philanthropy Benefits and Challenges Putting the Best Foot Forward © 2007 KPMG LLP, a US limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. Printed in the U.S.A.

4. 3 Private Sector is a Major Player © 2007 KPMG LLP, a US limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. Printed in the U.S.A.

5. 4 Private Sector is a Major Player Grants from Private Foundations Grants from Public Charities Grants from Private Universities © 2007 KPMG LLP, a US limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. Printed in the U.S.A.

6. 5 Private Sector is a Major Player © 2007 KPMG LLP, a US limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. Printed in the U.S.A. Net Government Foreign Aid in 2004 CountryUS $Billions United States19.70 Japan8.91 France8.47 United Kingdom7.88 Germany7.53 Netherlands4.20 All Others (16)22.82 Total79.51 Organization for Economic Development and Co-operation (OECD), Development Co-operation Report 2005, Vol. 7, No. 1, 2006

7. 6 Private Sector is a Major Player However, in 2004, the U.S. private sector contributed US $71.2 Billions! Nearly 100% of all the governmental aid given by the highest 22 contributing countries More than the aid given by the highest 12 contributing countries. © 2007 KPMG LLP, a US limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. Printed in the U.S.A.

8. 7 Private Sector is a Major Player © 2007 KPMG LLP, a US limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. Printed in the U.S.A. Organization for Economic Development and Co-operation (OECD), Development Co-operation Report 2005, Vol. 7, No. 1, 2006

9. 8 Benefits & Challenges © 2007 KPMG LLP, a US limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. Printed in the U.S.A.

10. 9 Benefits and Challenges (Benefits) Fund activities that are too controversial for Government or where Governments refuse to fund (e.g., current debate over abstinence v harm reduction in the HIV field) Policy & Program Continuity (i.e., no major changes that accompany change of Government) Speed and flexibility Take a longer term view (i.e., no ‘political’ need to demonstrate results to meet an election cycle Can openly discuss and admit successes and failures and move on Focus on monitoring program impact, not process (e.g., purchased goods requirements) Support programs in-country where Governments might be opposed (e.g., women’s rights/human rights) Apply private sector standards of monitoring & measuring success (e.g., use of an independent firm to monitor grants) © 2007 KPMG LLP, a US limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. Printed in the U.S.A.

11. 10 Benefits and Challenges (Challenges) IRS rules (e.g., prohibition on activity to change legislation, reporting requirements, capital equipment/endowment grants, etc.) No independent oversight (e.g., no Congressional committee, sometimes no Board or Board is dominated by one family) In the case of corporate ‘private foundations’ overlap with the corporation’s interests Tendency to support many small projects and not be capable of funding large- cost, scaled-up programs that have a major impact Tendency to be wary of Governments – leads to programs not supported by in- country Government (sometimes this is a good thing) or not complementary to Government programs (e.g., Russia and India) Less restrictive rules for engaging contractors/consultants (sometimes this is a good thing) © 2007 KPMG LLP, a US limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. Printed in the U.S.A.

12. 11 Putting the Best Foot Forward © 2007 KPMG LLP, a US limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. Printed in the U.S.A.

13. 12 Putting the Best Foot Forward Build the relationship with your funder (be cooperative, don’t treat it as “free” money, ensure goals are aligned with the foundation’s goals) Is a “quid pro quo” necessary (e.g., what is free, what is the company doing in your country) Programs that make an impact (“venture philanthropy”) For corporate foundations, what “quarterly story” can be told Collaborations, partnerships, consortia Differentiate from the “government” Follow through Transparency and accountability © 2007 KPMG LLP, a US limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. Printed in the U.S.A.

14. 13 KPMG LLP Timothy A. A. Stiles Global Grants Program, Partner in Charge taastiles@kpmg.com +1.415.963.7551 +1.415.963.7551 © 2007 KPMG LLP, a US limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. Printed in the U.S.A.