Conflict of Interest (Nonprofit)

Conflict of Interest Policy for Nonprofit Organizations. The purpose of this Conflict of Interest Policy is to protect the organization's interest when it is contemplating entering into a transaction or arrangement that might benefit the private interest of an officer, director, or key employee of the organization, or might result in a possible excess benefit transaction as defined by Section 4958 of the Internal Revenue Code. Any director, officer, or member of a committee with Board-delegated powers who has a direct or indirect financial interest in a proposed transaction or arrangement shall: (a) disclose the existence of the financial interest and all material facts related thereto to the Board of Directors or relevant committee; (b) recuse themselves from the discussion and vote on the transaction or arrangement; and (c) not attempt to influence improperly the deliberation or voting on the matter. After disclosure of the financial interest, the remaining disinterested Board or committee members shall determine whether the organization can obtain, with reasonable efforts, a more advantageous transaction or arrangement from a person or entity that would not give rise to a conflict of interest. If a more advantageous transaction or arrangement is not reasonably possible, the Board or committee shall determine by a majority vote of the disinterested members whether the transaction or arrangement is in the organization's best interest, for its own benefit, and whether it is fair and reasonable. Each director, officer, and key employee shall annually sign a statement affirming that they have received, read, and understood this policy and have disclosed all known conflicts.