ICF: A Case Study of International Giving to Mexico Richard Kiy International Community Foundation Reunión Annual de CEMEFI Nov. 27., 2002

International Community Foundation (ICF) Established in 1990 Grew out of a donor advised fund at San Diego Foundation FY-02 grantmaking: $895,000; 49 grants. Geographic focus: Asia and the Americas Country specialties: Mexico Other grantmaking experience: China, India, Ecuador, Canada, Guatemala and Afghanistan. Strategic relationship with Fundación Internacional de la Communidad (FIC) en Baja California. Binational board (3 board members are Mexican Nationals plus the Consul General of Mexico-San Diego)

The role of the ICF: Assists family foundations, community foundations, corporations and individual donors with charitable giving abroad; Undertakes necessary due diligence and follow up to make an overseas grant tax deductible and to insure that donor is maximizing his/her social return on investment; Provides research support for donors exploring possible international giving opportunities and community based needs.

ICF Donor Profile Immigrants with ties to their communities of origin; Companies and individual investors with business ties/interests overseas; U.S. retirees with vacation homes in Mexico. Former expatriates or volunteers (including Peace Corps) that want to re-connect with the overseas communities where they once lived; Individuals inspired by their overseas travel experience; Californians with Mexico border specific interests; Interest in foreign affairs. Donors are varied, but they all share one thing in common, a desire to make a difference beyond our borders. Some of our donors include:

Service Offerings Donor Advised funds Min. initial contribution: US$5,000 Field of Interest funds Sea of Cortez Fund Baja California Disaster Relief Fund Border Environmental Fund Charitable Remainder Trusts (CRTs); International Charitable Expenses; International Employee Giving Programs (e.g. Sempra); Customized research support for overseas charitable giving programs

Typical Donor International Giving Concerns: Uncertainty over tax deductibility; US-Mexico Tax Treaty of 1996 limits giving to a donor´s Mexican sourced income unless they use an intermediary like ICF Limited knowledge of applicable laws and regulations a in recipient countries; Language and cultural barriers; Challenges in finding qualified non-profits overseas for a donor’s specific interests; Costs of doing required due diligence for potential grantees; Concerns about corruption; Fear of the unknown.

FY-02 Grants by Country

FY-02 Mexico Grants Other states include: Chihuhua and Coahuila FECHAC 1:1 match for Chihuhua

FY-02 Grants by Area

Corporate Giving— Sempra Energy Provides U.S. Parent company with a philanthropic vehicle to support its Mexican operations while receiving tax benefit in the US. Supports Mexican subsidiaries: Ecogas and Sempra Mexico Grantmaking through Sempra International Community Investment Fund at ICF Philanthropic initiatives currently being undertaken in Baja California; Coahuila, and Chihuhua where the company does business. Projects funded: Children/youth; environment; health; education.

Ties that Bind Us Program links U.S. Migrant communities with their communities of origin in Mexico. Initial work with COCIO, a hometown association of Oaxaqueños living in San Diego with roots in the Valle Central de Mexico. Micro-credit program in El Trapiche. Currently also working migrant community from Zamora, Mich and with California wine grower on a possible employee matching fund program.

Dr. Juan Hernandez, ICF Board Member Dr. Raul Hinojosa and project leader, Elsa Payo at community greenhouse, El Trapiche.

Reasons to Give Internationally Through ICF the tax benefits are the same as giving to a domestic non-profit The needs are great Majority of the world's population live on less than two US dollars a day. 20% of Mexican population live in conditions of extreme poverty High Impact A dollar goes a lot farther in the developing world than in the US. Growing inter-dependencies In an age of increased interconnection and migration Americans are becoming more aware about the need to give beyond the border For a growing number of Americans international giving begins with Mexico.

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