Rare Inc.

“During the fiscal year ending september 30, 2022, rare identified a misappropriation of assets that occurred in a field office of the organization over a period of multiple years. The misappropriation involved unauthorized, fraudulent use of rare funds by a former employee in a position of financial responsibility. Upon discovery, rare notified the board of trustees and donors and immediately initiated an internal investigation to determine the full extent of the incident and identify any other potential irregularities; none were found. The misappropriation was committed in a foreign currency, the approximate translated amount was $1.3m usd of which $0.34m usd was in fy22. Rare expects to recover the total amount identified as misappropriated assets. Rare recorded the fy22 amount as a receivable and expensed the remaining amount as a contingent loss. Rare has taken the necessary actions to address the misappropriation, protect the organization's assets, and prevent similar incidents from occurring in the future. Continued actions are underway to further strengthen internal controls and regularly review financial practices to ensure the integrity of operations.”

“The board members were given a copy of the return to review before filing with the irs.”

“Upon joining, staff and board members are required to sign a conflict of interest disclosure statement indicating the capacity in which you are serving the organization, any affiliations with rare's business partners, or any benefit gained through a rare business transaction. Detailed information on any such potential conflict must be fully disclosed on the form. Annually, staff and board members are required to provide any updates.”

“Annually, rare staff compiles market compensation data from compensation surveys. Rare hires an external compensation firm to review the compensation of those in a position to exercise substantial influence with respect to rare's business affairs. The external compensation firm provides the ceo, the chairperson of the board and the finance and hr board committee with a report that provides market information for each role. The firm also provides an opinion on the reasonableness of the ceo's compensation. The board chairperson and the finance and hr board committee meets with the external compensation firm and reviews the report, information, and analysis. The ceo reviews the compensation adjustments recommended with the finance and hr committee. The board chairperson and the finance and hr committee determines a compensation adjustment for the ceo, based on the information provided by the outside firm, as well as the ceo and rare's business performance for the year.”

“Rare makes its governing documents, conflict of interest policy, and financial statements available upon request for the same period of disclosure as set forth in section 6104(d).”

“Rare is the leading behavior change organization in conservation and sustainable development. In our more than four decades of work, rare has launched over 450 behavior change campaigns (known as "pride") in more than 60 countries, inspiring local communities to adopt more sustainable fishing habits, end deforestation, preserve habitat, and save species. Pride increases and accelerates the adoption of conservation solutions - and the change lasts. Rare's people-centered, participatory approach to conservation empowers local leaders and elevates the role of fishers, farmers, and other people who depend on nature in local decision-making and governance. This community-led approach is buoyed by partnerships with officials at all levels of government from mayors to ministers and with public and private institutions, universities and other organizations capable of removing barriers and paving the way for enduring solutions.”

“Other professional fees: program service expenses 4,315,308. Management and general expenses 193,993. Fundraising expenses 183,738. Total expenses 4,693,039.”

“Contingent loss -982,024.”

“The process for overseeing the audit of the financial statements and selection of an independent accountant that audited the financial statements has been consistent with prior years.”

“Part i, line 5 only reflects the number of employees receiving form w-2 (93). The total number of worldwide employees is 183.”