Expenditure Responsibility, or ER, is one of two legally permissible methods for U.S. grantmakers to perform charity vetting services in order to disburse grant funds to charitable organizations incorporated outside of the U.S. ER focuses on documenting that the funds received were used for the intended charitable purposes.

ER requires less upfront cost and effort on behalf of the grantmaker than Equivalency Determination, the alternative method, but it does require more detailed documentation and follow up regarding the use of funds by the grant recipient. Also, ER may be followed when the desired recipient organization’s equivalency status cannot be determined.

NGOSource is a joing project sponsored by The Council on Foundations and Techsoup to simplify grantmaking to NGOs around the world. Their efforts include improving Expenditure Responsibility and Equivalency Determination processes, in order to benefit all interested stakeholders.