How can US 501c(3) non-profit operate legally in DR?

Charles Lowman said:

A U.S. based 501c(3) non-profit organization wants to lease property in the DR and provide educational services and training to local residents.

1. Does the organization have to setup a separate non-profit corporation in DR in order to be recognized as non-profit by the DR? No, it can obtain an authorization to act as a non-profit in the Dominican Republic. The paperwork required, however, is just a extensive as setting up a Dominican non-profit, if not more.

2. If the organization simply registers as a NGO does it lose any benefits inside of DR vs setting up a separate non-profit corporation? Yes, it has to registar as a non-profit.

3. Are the benefits of being registered as a non-profit corporation in DR similar to those benefits associated with 501c(3) in the U.S.? Yes and no (see below).

4. Under what circumstances can Dominican nationals claim tax-deductible contributions to non-profits operating inside the DR? If a Dominican contributes money to a US non-profit that is not registered locally as a non-profit but as a NGO and another contributes to a DR registered non-profit is this treated the same by the DR tax entity?Tax deductible contributions to non-profits are limited under the Dominican Tax Code to a maximum of 5% of taxable income (Art. 285-i).

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