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Advanced FAQs

If the organization is to disband who is the beneficiary of the fund?

The charter for BSEF requires that upon the dissolution, the charity’s assets shall be distributed for one or more exempt purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code.

What internal safeguards are present in terms of officers and directors deriving personal benefits?

BSEF by-laws provide strong safeguards in this arena. Below are our rules on compensation, conflict of interest, and disbursement plan. All of these combined ensure that there are internal safeguards present in terms of officers and directors deriving personal benefits. 

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  1. Compensation

    • Section 16: Compensation of Directors

      • The Corporation will not pay any compensation to directors for services rendered to the Corporation, except that directors may be reimbursed for reasonable expenses incurred in the performance of their duties to the Corporation.​

  2. Conflict of Interest: Article III, Section 12 of our By-Laws contains the conflict of interest policy, which forces the conflicted party to inform the board and abstain from any decision regarding the situation where there may be a risk of conflict of interest with any officer of the board. ​

  3. Disbursement Plans: To avoid any risks of majority influence on disbursement, disbursement decisions have to be passed unanimously by the board.​

  4. Biennial Internal Audit: BSEF is committed to ensure that all the funds disbursed by the board is used exclusively for the purpose it is assigned. It also ensures that none of the disbursements are channeled to board members and/or his/her next-to-kin. In order to ensure that, BSEF conducts biennial internal audit with the following guidelines:

    • The board shall hire an external independent auditor to audit all disbursements in the last two fiscal years.The auditor shall acquire information on all contractors and subcontractors used to implement any funded project. The information shall include, but not limited to:Amount, date and method of fund disbursed, List of owners, board member and majority shareholders, List of executive committee, CEO, CFO and other decision makers, The auditors shall verify that none of the beneficiary of the disbursed funds have any connection the existing of past board member of BSEF or his/her next-to-kin. The auditors must be changed after every three audits to ensure further transparency and independence of the audit process. The audit reports will be published in BSEF’s website.

  5. Criminal Punishment : Any unauthorized or illegal activities by any current or previous board members is liable to be fully prosecuted by the maximum extent of the law. 

  6. Changes to the Board: In order to safeguard the governance structure of the fund, BSEF board members have rotating tenures and limits on consecutive terms.

What are the goals of the investment?

The three primary goals of our investment are as follows:

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  1. Preserve and enhance the purchasing power of endowment assets by generating investment income to provide stable and long-term contributions to the school

  2. Institute disciplined spending policy for capital preservation by setting a percentage of the investment income to be allocated to the school and the rest will be invested back into the fund so the principal amount of the fund increases in perpetuity

  3. Diversify investment across asset classes for prudent portfolio management and reduce long-term risk

  4. Diversify investment across asset classes for prudent portfolio management and reduce long-term risk

Why does the school not own all the money?

BSEF was established by like-minded BNKS alumni and well wishers in North America and it follows the regulations set by the US Internal Revenue Services on the conduct of 501 (c)(3) not-for-profits.

Why are you not using licensed professional fund manager at all times?

  • Currently, the amount of funds raised is not large enough to generate enough returns to fund licensed manager sustainably. Hence, the investment committee, which is comprised of board members with strong financial services experience, handles the investment policy in agreement with the board. 

  • The long-term goal of BSEF includes hiring  professional fund managers to oversee the investment.

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