Compliance Risk

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Abstract

Legal + Regulatory risk refers to the potential for non-compliance with applicable laws and regulations in any district that Endaoment is operating within. This includes risks associated with charitable and tax law, specifically pertaining to operations outside the Endaoment.org’s charitable purpose, which could potentially lead to compliance related issues that may impact 501(c)(3) status.

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Policy

Endaoment believes in providing regulatory compliant accounts for users and preventing non-compliant activity, including ensuring adherence to charitable and tax laws critical to maintaining our 501(c)(3) status where relevant. We manage these risks through regular compliance analysis, legal review, detailed transaction monitoring, and adherence to practices that prevent self-dealing, private inurement, and other prohibited activities.

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Scope and Applicability

This policy applies to all Endaoment employees, contractors, board members, and those acting on behalf of Endaoment in any capacity. Non-compliance with this policy, including acts that risk Endaoment.org’s charitable status or violate charitable and tax laws, may lead to disciplinary action up to and including termination/removal. Should there be a conflict of law, the more stringent of either this policy or the applicable law will be applied, ensuring the highest standard of compliance is maintained.

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Operational Controls + Testing

Internal controls will be monitored and/or tested on a periodic basis determined by risk, including risks related to charitable and tax law compliance. Monitoring and testing outcomes will inform the continuous improvement of internal controls to mitigate risks effectively.

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Training

All Endaoment employees will receive training on Legal Compliance + Regulatory Risk to ensure policy continuity and application. New hires will be trained within their first 60 days, and mandatory incumbent trainings will be conducted bi-annually with all current employees.

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Governance

This policy will be reviewed by the executive team and updated semi-annually to ensure it remains up-to-date. Escalation of any questions, concerns, or requests for exceptions regarding this policy must be made to the Endaoment executive team and approved unanimously.