Feral Jundi

Wednesday, November 18, 2009

Company Spotlight: Bancroft Global Development, the 501(c)3 Non-profit PMC

    That’s right, I am not making this up.  Bancroft Global Development is a no-kidding non-profit PMC. lol.  Anyway, this is all I could scrape up about BGD, and I thought it was a pretty cool concept.  I don’t know of any other non-profit PMC’s out there, and this company totally presents a different view on how we look at the PMC.  I also posted their earnings from 2007, and it looks like they are doing pretty well.

     What I really like about this is that is takes the whole ‘evil profiteering PMC’ element out of the conversation.  Although I would like to hear about any downsides with something like this, and I am all ears with the readership.

     So how about a non-profit Co-op PMC as an idea for a company? Just thinking out loud, and there are all sorts of interesting paths you could take with this stuff.  By the way, if any BGD guys would like to comment, or post any PR stuff, feel free to do so in the comments or send it to me and I will edit this thing.  I also look forward to when the website becomes fully operational and if they start looking for guys for their operation in Somalia and elsewhere. –Matt

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From their website.

Bancroft Global Development is a non-governmental organization dedicated to removing violence from public discourse, by promoting permanent solutions to the economic, environmental and societal harm caused by armed conflict.

Bancroft Global Development was duly organized in 1999 under the laws of the United States as a 501(c)3 not-for-profit charitable organization.

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From Strategy Page

Mercenaries To The Rescue

June 4, 2009:

When Ugandan and Burundian AU (African Union) peacekeepers in Somalia recently came under attack by Islamic terrorists using suicide and roadside bombs, they quickly hired some specialists to help improve their defenses. The outfit hired, Bancroft Global Development (BGD), is a South African company, commonly known as “mercenaries”, who had worked in Iraq to deal with defending military and civilian organizations against terrorist bombs. Elsewhere in the world, BGD also works on clearing landmines and explosives left over from wars and unrest.

Thousands of former members of the Ugandan Army had served in Iraq, as security guards and such, and knew of outfits like BGD, and how effective they were in limiting the damage from these terrorist bombs. So BGD came to Mogadishu, with their special equipment and bomb sniffing dogs, and showed the AU troops how to makes their bases, and operations outside the bases, safer from the terrorist bombs (which have caused most of the casualties among the peacekeepers in the last year).

Story here.

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Wikipedia Definition of 501(c)(3) [BGD claims a not-for-profit charitable organization]

(Religious, Educational, Charitable, Scientific, Literary, Testing for Public Safety, to Foster National or International Amateur Sports Competition, or Prevention of Cruelty to Children or Animals Organizations)

501(c)(3) exemptions apply to corporations, and any community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, educational purposes, to foster national or international amateur sports competition, promote the arts, or for the prevention of cruelty to children or animals.

Another provision, 26 U.S.C. § 170, provides a deduction, for federal income tax purposes, for some donors who make charitable contributions to most types of 501(c)(3) organizations, among others. Regulations specify which such deductions must be verifiable in order to be allowed (e.g., receipts for donations over $250). Due to the tax deductions associated with donations, loss of 501(c)(3) status can be highly challenging to a charity’s continued operation, as many foundations and corporate matching programs will not grant funds to a charity without such status, and individual donors often will not consider making a donation to such a charity due to the unavailability of the deduction.

Testing for public safety is described under section 509(a)(4) of the code which makes the organization a public charity and not a private foundation, but contributions to 509(a)(4) organizations are not deductible by the donor for federal income, estate, or gift tax purposes.

The two exempt classifications of 501(c)(3) organizations are as follows:

A public charity, identified by the Internal Revenue Service (IRS) as “not a private foundation,” normally receives a substantial part of its income, directly or indirectly, from the general public or from the government. The public support must be fairly broad, not limited to a few individuals or families. Public charities are defined in the Internal Revenue Code under sections 509(a)(1) through 509(a)(4).

A private foundation, sometimes called a non-operating foundation, receives most of its income from investments and endowments. This income is used to make grants to other organizations, rather than being dispersed directly for charitable activities. Private foundations are defined in the Internal Revenue Code under section 509(a) as 501(c)(3) organizations which do not qualify as public charities.

Obtaining status

Most organizations acquire 501(c)(3) tax exemption by filing IRS Form 1023. The form must be accompanied by a $750 filing fee if the gross receipts for the organization are expected to average $10,000 or more. If gross receipts are expected to average less than $10,000, the filing fee is reduced to $300. There are some classes of organizations that are automatically treated as tax exempt under 501(c)(3), without the need to file Form 1023:

Churches, their integrated auxiliaries, and conventions or associations of churches

Organizations that are not private foundations and that have gross receipts that are normally not more than than $5,000

Beginning January 3, 2010 these fees will be increased. After that date, the filing fee will be “$850 for organizations whose gross receipts exceed $10,000 annually over a 4-year period”. “$400 for organizations whose gross receipts are $10,000 or less annually over a 4-year period”The IRS also expects to release a software tool called Cyber Assistant in 2010, which will assist with the preparation of the application for tax exemption. Once Cyber Assistant becomes available, the user fee structure will change again. The fees will then be $200 for all organizations (regardless of size) that file using Cyber Assistant. Organizations that do not use Cyber Assistant (regardless of size) will pay a user fee of $850.

Political activity

Section 501(c)(3) organizations are subject to limits or absolute prohibitions on engaging in political activities.

Link here.

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Somalia peacekeepers taught urban warfare

2009-05-29

AMISOM hires Bancroft Global Development to train AU peacekeepers on finding explosive devices in Mogadishu.

By Emmanuel Goujon – MOGADISHU

Somalia’s Ugandan and Burundian peacekeepers have years of experience battling rebels at home, but faced with Mogadishu’s insurgents they have had to enlist the help of a private company.

The main threat is often invisible and comes in the shape of an explosive device: the African Mission in Somalia (AMISOM) has suffered its worst losses in roadside bomb or car bomb attacks.

Unfamiliar with the kind of guerrilla tactics that US-led foreign troops in Iraq have been dealing with, AMISOM hired Bancroft Global Development, a private outfit based in South Africa and specialising in “landmine research”.

At the gate to AMISOM’s fortified headquarters in the war-ravaged seaside Somali capital, members of the force’s Ugandan contingent are being trained.

Wagging its tail, a black labrador is led around a grey Mercedes, which sits with doors, bonnet and boot open. It sniffs behind the tyres and on the seats: no explosives.

“Any type of explosives, the dog can find them. They are 100 percent reliable. No machine or technology could do that better,” said David Schoman, a Bancroft expert wearing fatigues and a khaki T-shirt.

If the sniffer dog detects something, it sits. “Then one of the military police guys goes around and searches the car with a mirror as well, so we check it twice,” Schoman explained.

“You’ve got different types (of explosives) but the dog can find all of them. He’s trained for three months on all of them. The same type of dogs is used in Iraq and Afghanistan. They are labradors and German shepherds.”

Since the African Union peacekeeping force dispatched its first Ugandan contingent to Mogadishu in March 2007, the most deadly weapon used by hardliners opposed to their presence has been IEDs (improvised explosive devices).

More than half of the peacekeepers killed over the past two years died in such attacks, involving bombs either planted by the roadside or concealed in vehicles.

“For us the main threat is the IEDs,” said Jack Bakasumba, operations commander for AMISOM’s Ugandan contingent.

“For the three or four kilometres between the airport and the K4 crossroad, we set up some monitoring positions because that was where we had the highest number of incidents with IEDs,” he explained.

In February, a suicide car bombing targeting Burundian troops killed 11 people, including the two bombers, and completely destroyed a building where the peacekeepers had set up a small shop run by Somalis.

“For almost a year, these Somalis prepared their suicide mission, and they would use that same car to come here. One Sunday, they waited for the soldiers to return from prayers and gather in the courtyard to blow up their charge,” said General Prime Niyongabo, commander of the Burundian contingent.

“We have understood that with the Somalis, there can be no friends. So now, not a single Somali enters the camp, not a single car,” he said.

AMISOM spokesman Bahuko Barigye explained that hiring a private security company was necessary to avoid unnecessary losses.

“The Ugandan army doesn’t have any experience in IEDs, so when we were confronted with that scourge, we had to find a solution,” he said.

Bancroft Global Development was contracted by AMISOM donors, had already worked with the Ugandan army in the past and was an obvious choice, Barigye explained.

Bancroft expert Rocky Van Blerk explained how his company conducts research on the explosive devices, raises awareness, offers training and active protection for the Ugandan base.

“Soon there will be some dogs at the Burundian base. It is because they had no dogs that the kamikaze could enter,” said Van Blerk, who honed his skills in Iraq and Afghanistan for four years before working in Somalia.

Story here.

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Last update: 2007-12-01

This nonprofit has assets of $2,676,307, income of $12,939,813, revenue of $12,939,813.

Link to report here.

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Video of Bancroft Global Development providing training and assistance in Somalia here.

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