This dissertation extends the literature on the crowd-out theory to international nonprofits based in the United States. The dissertation measures the simultaneous impact of government grants on private contributions and fundraising activities of INGOs. Understanding the relationship of the major players (government, donors and nonprofit managers) in revenue collection of INGOs is important in understanding international charity and its implications. Six major sub-categories of international organizations have been identified for this research. These are based on a review of the literature on international organizations and those already coded as international according to the National Taxonomy of Exempt Entities (NTEE). An overview of the INGO sub-categories, their description and coding can be seen in table A5 in appendix A. The major sub-categories include (1) International, Foreign Affairs and National Security (ifans), (2) Promotion of International Understanding (piu), (3) International Development (id), (4) International Peace and Security (ips), (5) International Human Rights (ihr), and (6) International, Foreign Affairs and National Security N.E.C. (ifansNEC). We will employ a panel dataset of INGOs between the years 1998 and 2003 to test for crowding-out effect of government grants on private contributions and fundraising activities. We have a total of 2,169 INGOs in our data set and a total of 6,239 observations.