|According to the Project Concern International (PCI) tax filing for the fiscal year ended September 30, 2017, PCI received donations of in-kind goods on which it placed a value of approximately $9.5 million; approximately $4.4 million and $5.1 million consisted of food inventory and drugs & medical supplies, respectively (IRS Form 990, Schedule M).
In addition, PCI reports receiving in-kind donated services and use of facilities in fiscal 2017 on which it placed a value of $128,863 (IRS Form 990, Schedule D, Part XI).
[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 on the Our Process page.]
|According to the Project Concern International (PCI) audit of September 30, 2017 (Note 10, Related-party Transactions):
"In 2016, PCI purchased insurance from an insurance agency which employed a member of the Board of Directors. Approximately $16,000 in commissions was paid to the agency for the year ended September 30, 2016. PCI purchased insurance from the same insurance agency in 2017; however, the member of the Board of Directors has retired from the agency.
"In 2017 and 2016, PCI retained legal services from a law firm with which a member of PCI's Board of Directors is associated. PCI paid approximately $17,000 and $30,000 in fees to the law firm during the years ended September 30, 2017 and 2016, respectively."
|According to the Project Concern International (PCI) audit of September 30, 2017 (Note 9, Contingencies, Customs fees):
"In 2002, 2003, 2007, 2008, and 2009, PCI imported commodities for its program in a South American country. These commodities were for both monetization (resale to generate program resources) and distribution to program participants...
"There is currently a bilateral agreement signed between the United States federal government and the local government that exempts commodity transactions from customs fees. Additional agreements exist between PCI and ministries of the local government exempting PCI from any customs fees. Additionally, a framework agreement exists between PCI and the government of this country, which may exempt such commodities from tax.
"In January 2009, December 2010, December 2011, and July 2017, PCI received notifications from the Customs Office in this country that the commodities it imports for monetization are subject to customs fees..."
It is reported that there is approximately $5.3 million in total assessed taxes, penalties and interest in connection with the various notices received by PCI:
-- 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."
-- For approximately $1.0 million of the total, "PCI's case was then [upon appeal] reviewed by the Supreme Court and resolved in PCI's favor on March 30, 2016..."
-- Approximately $1.9 million of the total is either awaiting court trial or final court ruling.
-- Approximately $0.8 million of the total is related to a notification received by PCI in July 2017, and no legal actions have been taken.
"Several other major United States-based organizations working in the same country on similar programs during that timeframe received similar notifications. ... PCI and legal counsel believe that a 2009 law change, with which PCI is in compliance, appears to have been incorrectly applied retroactively in this situation. PCI and legal counsel also believe that other agreements between PCI and the local government provide further support that there is no liability as asserted.
"PCI is currently pursuing resolution of this issue through both administrative and legal actions and will leverage the October 2014 and March 2016 Supreme Court decisions during this process. The Donors [the U.S. Agency for International Development (USAID) & U.S. Dept. of Agriculture] have also intervened with the local government. A liability resulting from this matter is not considered probable..."
|According to the Project Concern International (PCI) tax filing for the fiscal year ended September 30, 2017, PCI reports for Compensation Information:
Regarding severance payments to officers, directors, trustees, key employees and highest compensated employees (IRS Form 990, Schedule J, Part I, Line 4A):
"PCI restructured its senior management team during the fiscal year eliminating the position of Vice President, Programs & Managing Director, DC. Severance was paid in accordance to the terms of PCI's policies and practices. Timothy Ogborn received a severance payment in the amount of $31,782" (Schedule J, Part III).
PCI reports that Timothy Ogborn received total compensation of $215,183, including the $31,782 severance payment and $2,000 in "Bonus & incentive compensation," in calendar year 2016 (Schedule J, Part II).
Regarding nonfixed payments to officers, directors, trustees, key employees and highest compensated employees (IRS Form 990, Schedule J, Part I, Line 7):
"Non-fixed payments received by listed persons on Schedule J, Part II [Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees compensated more than $100,000], represent discretionary bonuses not based on a formula specified in contracts" (Schedule J, Part III).
In addition to the $2,000 in "Bonus & incentive compensation" paid to Timothy Ogborn (noted above), PCI reports that George Guimaraes, former Chief Executive Officer (thru 12/16), received $31,277 in "Bonus & incentive compensation" in calendar year 2016. The reported total compensation for Mr. Guimaraes is $324,417 (Schedule J, Part II).