A UK Charity’s Guide to Unlocking US Foundation Grants
Posted: May 20, 2026
The Atlantic Ocean shouldn’t be a barrier to impact. For UK charities, the US grantmaking market potentially offers a huge reservoir of funding, but these foundation grants can come with a complex set of rules.
These US foundations give billions globally, so you would think that UK-based charities are uniquely positioned to benefit. However, the technical challenge and IRS compliance often stops great projects in their tracks.
The Compliance Landscape: ED vs. ER
When a US foundation gives directly to a UK charity, they typically use one of two methods:
- Equivalency Determination (ED)
A legal process where the foundation verifies that your UK charity operates exactly like a US 501(c)(3). It is thorough and can be expensive for the foundation to conduct.
- Expenditure Responsibility (ER)
A method where the foundation exerts strict “oversight” on how the money is spent. It requires detailed, separate reporting that can be administratively heavy for your charity team.
Why Not Set Up Your Own 501(c)(3)?
It is possible for a UK charity to establish its own US 501(c)(3), but this route is typically the most expensive and complex. It involves legal setup, ongoing compliance, US-based governance requirements, accounting, and annual IRS filings. Costs can run into thousands each year, alongside significant administrative time.
For most charities, especially those testing US fundraising, fiscal sponsorship offers a faster, lower-risk, and far more cost-efficient alternative.
Fiscal Sponsorship – A strategic advantage
By using a fiscal sponsor like Better Giving, UK charities bypass these hurdles. The donor gives to a US entity – the Better Giving 501(c)(3)- and we ensure the funds reach your UK mission with all legal boxes ticked.
How Better Giving Helps
The biggest hurdle for a UK nonprofit is often not finding the grant, but being eligible to receive it. Most US foundations can only give to organizations with 501(c)(3) status.
Better Giving bridges this gap. As a registered US 501(c)(3) nonprofit, Better Giving provides
Fiscal Sponsorship for international organizations. This means:
- Instant Eligibility: You can apply for US grants using Better Giving’s 501(c)(3) status, removing the need for you to set up your own US entity.
- Simplified Compliance: We handle the complex IRS reporting, Equivalency Determinations,and “Expenditure Responsibility” paperwork.
- Donor Confidence: US foundations and individual donors can give to you through Better Giving and if appropriate, receive a US tax deduction, making your charity a much more attractive prospect.
How to Identify the Right US Grantmakers
Successful cross-border fundraising starts with data. Most US foundations are required to be transparent about their international giving. You can find your best prospects via:
- The Foundation Directory (Candid): The primary tool for filtering US foundations by their “Geographic Focus” (select Grantmakers, and then UK or Europe).
- Direct Research: Focus on foundations with a history of global work, such as the Ford Foundation, Gates Foundation, or Bloomberg Philanthropies.
- Peer Review: Look at the annual reports of UK charities similar to yours to see which US organizations are already funding work in your sector
Writing for a US Grantmaking Audience
Once you have found some grant opportunities, then to win over American donors or grantmakers, adjust your pitch:
- Focus on Scale: US foundations love projects that can be replicated or scaled globally.
- Hard Data: Lead with your impact metrics. American grantmakers are highly focused on quantifiable outcomes.
- Direct Language: Avoid overly “academic” or modest descriptions. Be bold about your successes and clear about your needs.
The philanthropic link between the US and UK is stronger than ever. With the right research and a cost efficient fiscal sponsorship partner like Better Giving, your organization can turn cross-border potential into real-world impact.
About Better Giving’s Fiscal Sponsorship: You can read more here, but you should note that Better Giving offers a service that is the most cost efficient in the marketplace.
This means you keep more of the foundation grants or US donations. Why not give it a try? It costs you nothing, and could just make a major impact on your work!