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C H A P T E R E I G H T E E N1 8International Giving byIndividuals During Lifetime§18.1 Introduction 547§ 18.2 Background 548§ 18.3 Earmarking and ConduitRestrictions 550§ 18.4 Control over ForeignDonees 553§ 18.5 Summary 556§ 18.6 Income Tax Treaties 556The charitable impulse is not confined by national borders. Individuals, businesses,private foundations, and other charitable and noncharitable organizationsin the United States are increasingly finding the means by which to transfermaterials and funds to needy, troubled, and otherwise deserving areas of theworld. Although not always as simple as domestic giving, international charitablegiving is certainly feasible; increases in such giving are clearly the way of thefuture, as both individuals and organizations strive to meet large global social,cultural, and environmental needs.§ 18.1 INTRODUCTIONSome would say that the nations of the world are uniting. Others insist that aprocess of Balkanization is under way. Few would deny that the frontiers of theworld are being redefined.Attendant to geopolitical changes are internal national restructurings, whichare weakening sovereignties that have traditionally financed all social needs.Nearly everyone has been impressed by the deep and critical needs in all sectorsof life within, for example, the Central and Eastern European countries. Yet therise of charitable organizations and the necessity for them is truly an internationalphenomenon.This chapter describes the legal requirements underlying the U.S. income taxcharitable deduction for gifts to foreign charities made by American individuals.In general, contributions by individuals during lifetime to overseas organizationsdo not result in an income tax charitable deduction, because of historic policiesthat restrict deductibility to those charitable activities that essentiallyrelieve (and reduce) expenditures of U.S. public funds. Nonetheless, in certainsituations these international gifts will be deductible if the requisite control over 547