Humanitarian Projects Finance:

The Importance Of Humanitarian Projects:

Humanitarian activities are integral and necessary for our modern Global Socio-Economic System to function smoothly.

On the social side, many humanitarian projects strive to bridge the gap of financial disparity. If this gap is ignored and violence is allowed to expand, then revolutions would engulf the world, as has happened with some frequency in the past.

The extreme migration waves that we are experiencing today are partially due to these socio-economic gaps. Short of a genocide, Humanitarian Projects are the only answer to mitigate the stress of mass-migrations.

On the economic side, humanitarian projects strive to smoothly redistribute the surpluses which are the result of an increasingly productivist system.

If such surpluses were not neutralized through humanitarian systems, they would warp any stable economy and create a state of continuous crisis. This would destroy the fabric of the current Global Economic System.

In the Humanitarian realm we find a complete spectrum of extremely diverse entities.

• There are hundreds of Foundations from very large (in the billions $) to very small (100,000$).
• There are thousands of Non Governmental Organizations (NGOs) from very large institutions to a two-person association.
• There are hundreds of Impact Investing Organizations and NGOs, some highly structured, some with no structure at all.

Up until 2016 most Humanitarian Projects enjoyed a quasi immunity from the Banking Compliance Laws. This happened for two reasons:

1. On one end of the spectrum, bigger organizations, with the Million and Billion dollar projects, were providing what was considered sufficient data at the time.
2. On the other end, the lower budgets of the smaller orginizations’ projects completely fell under the Bank Compliance radar.

Since 2000, we have been witnessing a mounting trend to control, limit and ban the activities of large and medium size Foundations and NGOs. Many NGOs are considered to promote inimical political agendas, while others have been facilitating terrorist activities.

Since 2016, the Banking compliance Laws have started to be enforced more strictly, which means that the Banks will be held responsible for the misapplication of Funds, whatever the amount. (If a stream of $100 payments exceed $10,000 the total amount must be reported).

As a result:

The larger Humanitarian Organizations will incur an increased workload and cost to collect (and send to the Bank) the real-time project tracking data required by the Compliance Laws (in particular tracking all the transactions).

• GPE Solution: Global Project Engineering traces all transactions in real time.

The medium Humanitarian Organization and NGOs will need to pool their re-sources to collect the real time data required and to sub-contract to Global Project Engineering.

• GPE Solution: Global Project Engineering services are non-intrusive, allowing each NGO to function as in the past.

The smaller organizations cannot afford the increased cost of compliance. The cost will have to be paid by a major Humanitarian Organization which will sub-contract non-intrusive services from Global Project Engineering. Each small NGO will have to adhere to a Code of Best Practices.

• GPE Solution: In addition to tracing transactions in real time, Global Project Engineering services fulfill and exceed the regulatory requirements of the Banks at all stages of the project. This offers greater visibility for Humanitarian Project Managers from the beginning to the end of the Project – thus helping avoid costly project delays or losses.

For more information please contact Global Project Engineering.

---

---