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Governance
& Ethics

Governance & Ethics

This section compiles all content related to the organizational structure, legal framework, oversight, and ethical principles.

Dual-Entity Structure

RCA operates through a two-part structure:

  • A for-profit LLC handles technology, intellectual property, and revenue-generating activities.
  • A nonprofit arm (Redeemed Creative Arts Foundation, Inc.) oversees education, outreach, and grant-funded projects.
Legal Separation

Both entities have separate bank accounts, governing documents, and tax IDs (EINs).

Inter-Entity Agreement

The LLC holds the core intellectual property and licenses it to the nonprofit at cost through a written service agreement, ensuring IRS compliance and transparent financial management.

Governance Model

This structure aligns with best practices for hybrid social enterprises, allowing RCA to generate earned revenue without risking its charitable status.

Nonprofit Governance
  • The Redeemed Creative Arts Foundation is governed by a board of directors that provides ethical and fiduciary oversight.
  • The board operates under formally adopted bylaws and a conflict-of-interest policy.
  • The board composition has a majority of women and faith-centered leadership.
  • Annual independent financial reviews will be conducted to ensure transparency.
LLC Governance

The for-profit LLC is governed by a comprehensive Operating Agreement that outlines ownership interests, management authority, and reinvestment policies.

Compliance and Risk Management
  • A unified compliance framework protects legal integrity, data security, and public trust.
  • Financial controls include separate bank accounts, GAAP accounting, and required dual signatures for expenses above a set threshold.
  • Plans are in place for a full third-party audit once revenue reaches federal thresholds.
Data Protection & Privacy

RCA's platform infrastructure complies with recognized data protection standards (incorporating CCPA and GDPR principles), including encryption, access controls, and documented retention schedules.

Ethical Operations
  • RCA's identity is defined by ethical and faith-based operations.
  • The organization bans political activities, lobbying, or unrelated commercial enterprises under its nonprofit status.
  • All vendors and partners must follow RCA's ethical principles centered on integrity, inclusivity, and stewardship.
Community Safety & Standards
  • RCA publishes clear community standards grounded in biblical principles of respect, stewardship, and service.
  • All users must agree to a conduct policy at registration, which prohibits harassment, exploitation, and requires transparency.
  • A moderation system combines automated filters with trained human review.
  • Safety protocols for in-person exchanges include optional background checks for Helpers and GPS check-ins.
Governance Development

RCA considers governance a dynamic system. Over the next three years, the board will grow to include specialized expertise, and an Advisory Council will offer community insight. An Annual Impact and Governance Report will be published starting in Year 2.