CharityWatch REPORT
Issued September 2016

CharityWatch Analysts perform an in-depth analysis of charities' audited financial statements and IRS tax filings, and often review other documents such as state filings, annual reports, and fundraising contracts during their evaluations. Below are select notes that CharityWatch believes may be of interest to donors.

Any time an Analysts' Note refers to a charity's Audited Financial Statements or IRS tax form, CharityWatch encourages interested donors to obtain a copy of the referenced documents so that they may view the information in context. Please contact the charity directly to request a copy of any referenced document. Charity tax forms and audits may also be obtained from a number of online databases. For a list of sources, please visit our LINKS page.

Note(s)
According to the Project Concern International (PCI) tax filing for the fiscal year-ended September 30, 2015, PCI received donations of in-kind goods valued at approximately $9.0 million, with approximately $5.5 million consisting of food inventory and approximately $3.4 million consisting of drugs and medical supplies (IRS Form 990 Schedule M).

[Note: CharityWatch generally excludes the value of in-kind (non-cash) donations of goods and services from its calculations of Program % and Cost to Raise $100. More information on how grades are calculated and the treatment of in-kind donations can be found by clicking on "About CharityWatch" from the navigation bar and then clicking on "Criteria & Methodology".]
According to the Project Concern International (PCI) audit of September 30, 2015, Note 10, Related-party Transactions:

"In 2015, PCI purchased insurance from an insurance agency which employed a member of the Board. Approximately $13,000 in commissions was paid to the agency for the year ended September 30, 2015."

"In 2015, PCI retained legal services from a law firm with which a member of PCI's Board of Directors is associated. PCI paid approximately $40,000 in fees to the law firm during the year ended September 30, 2015."

According to the Project Concern International (PCI) audit of September 30, 2015, Note 9, Contingencies, Customs Fees:

"In January 2009, December 2010, and December 2011, PCI received notifications from the Customs Office in this country that the commodities it imports [from a South American country] for monetization are subject to customs fees..."

As of January 26, 2016, there is approximately $4.5 million in total assessed taxes, penalties and interest in connection with the various notices received.
-- For approximately $1.6 million of the total, "In October 2014, PCI received the final decision of the Supreme Court that ruled in PCI's favor."
-- Approximately $1.9 million of the total is either awaiting court trial or final court ruling.
-- For approximately $1.0 million of the total, "the government agency has filed an appeal with the Supreme Court of the country in question challenging the authority of the administrative function to require the exception to the frame-work agreement. No hearing date has been set."

[...]

"PCI is currently pursuing resolution of this issue through both administrative and legal actions and will leverage the October 2014 Supreme Court decision during this process. The Donors have also intervened with the local government. A liability resulting from this matter is not considered probable..."

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