Fundraising: Group to help UK fundraisers in US

An initiative to help charities raise funds from donors in the US has been launched by CAFAmerica.

The 'Friends Of' service makes it possible for UK charities to create a new legal entity within CAFAmerica.

In the past, charities wanting to set up sister organisations in the US and collect tax-deductible contributions had to create a new legal identity in every state. For many UK charities, the costs involved have made the process uneconomic.

The administration of the new service is handled by CAFAmerica. The set-up fee is $1,000 (£575). It then costs $3,000 a year to cover the cost of the first 100 donations.

Susan Saxon-Harrold, the chief executive of CAFAmerica, said it had developed the service on the strength of feedback from UK charities that had tried to operate their own sister charities in the US.

Trevor Watkins, head of trusts at Leonard Cheshire, said the service could be of use to charities that have an established donor constituency in the US.

However, he added that the cost was high, so organisations would have to ensure the income generated would justify the costs.

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