Building Equity Initiative Inc.

“The organization's disregarded entities: - unitranche capital fund llc (ucf) has a management/operating agreement with civic builders, inc.'s disregarded entity, civic fund manager llc (cfm). Per the agreement, cfm act as the fund manager of ucf. Cfm furnishes services in connection to the origination underwriting of loans and the management of loans and other assets held by ucf. The management fee accrued in 2021 for cfm was $311,479. - unitranche capital fund 2 llc (ucf2) has a management/operating agreement with civic builders, inc.'s disregarded entity, civic fund manager 3 llc (cfm3). Per the agreement, cfm3 acts as the fund manager of ucf2. Cfm3 furnishes services in connection the origination underwriting of loans and the management of loans and other assets held by ucf2. The management fee accrued in 2021 for cfm3 was $1,202,000. No individual reported on form 990, part vii, section a was paid by civic builders, inc., civic fund manager llc or civic fund manager 3 llc.”

“The organization has the following members within a single class of membership, but with differing rights: civic builders, inc., the national association of charter school authorizers, and the walton family foundation.”

“Two of the members, civic builders, inc. And national association of charter school authorizers have the right to appoint the majority of the organization's directors. The third member, walton family foundation, has the right to appoint the remainder of the directors.”

“Walton family foundation may remove directors which it has appointed. Any other directors may be removed by a vote of the majority of the members. Amendments to the bylaws are subject to the approval of the majority of the members.”

“There are currently no committees that are made up of the board members. The current board oversees all areas of the organization.”

“The organization has its form 990 prepared by an outside accounting firm which is then reviewed by civic builders, inc.'s management prior to distribution to all board members (by hard copy or electronically) for their review. Once the form 990 is reviewed by the board, the return is then filed with the irs.”

“Building charters fund, inc. (bcf) has a written conflict of interest policy, which is monitored and enforced annually. The board currently mandates that all members of the governing body and officers, annually sign a conflict of interest policy and disclose any potential or actual conflicts that may exist. An interested person may make a presentation at the board of directors meeting, but after the presentation, he/she must leave the meeting during the discussion of, and the vote on, the transaction or arrangement involving the possible conflict of interest. The board of directors is responsible for determining whether a conflict of interest exists and for determining whether a more advantageous transaction can be obtained without giving rise to a conflict of interest. The minutes of the board of directors must contain: a) the names of the persons who disclosed or otherwise were found to have a financial interest in connection with an actual or possible conflict of interest, the nature of the financial interest, any action taken to determine whether a conflict of interest was present, and the board's decision as to whether a conflict of interest in fact existed. B) the names of the persons who were present for discussions and votes relating to the transaction or arrangement, the content of the discussion, including any alternatives to the proposed transaction or arrangement, and a record of any votes taken in connection with the proceedings.”

“The organization makes its form 990 available for public inspection as required under section 6104 of the internal revenue code. The return is posted on guidestar.org, as well as other similar types of websites. In addition, the financial statements, conflict of interest policy, form 990, form 1023, and by-laws are also available upon written request to 180 varick street, suite 1414, new york, ny 10014.”

“Form 1099s are issued by the filing organization and by its disregarded entities.”

“The board of directors assumes responsibility for oversight of the audit of the organization's financial statements and selection of an independent accountant. The process has not changed from the prior year.”