Conflict of Interest Policy & Form
Neighborhood Falmouth Inc. (NF) is a nonprofit, tax-exempt organization. Maintenance of its tax-exempt status is important for its continued financial stability and public support. The IRS as well as state regulatory and tax officials view the operations of NF as a public trust, which is subject to oversight by such governmental authorities as well as by members of the public.
Consequently, NF board and employees have a fiduciary duty to the public that carries with it an expectation of loyalty and fidelity. They have the responsibility of administering the affairs of NF honestly and prudently, and of exercising their best judgment for the sole benefit of NF. Those persons will exercise the utmost good faith in all transactions involved in their duties, and they will not use their positions with NF or knowledge gained therefrom, for their personal benefit. The interests of the organization must be the first priority in all decisions and actions.
The purpose of this policy is to define the types of conflict of interest that are relevant to NF and to minimize their occurrence. This policy is intended to supplement but not replace any applicable state or federal laws governing conflict of interest applicable to nonprofit charitable organizations. The attached form will be used to implement this policy.
Concerned Person: Anyone who has transactional authority or who can influence the actions of NF, and who has a direct or indirect financial interest as defined below.
Financial Interest: A person has a financial interest if the person has, directly or indirectly, through business, investment, or family association, an ownership, compensation agreement, investment interest, or potential for any of these, in any entity with which NF has a transaction or arrangement. Compensation comprises direct and indirect remuneration including gifts or favors that are valued at more than $50.00.
AREAS IN WHICH CONFLICT MAY ARISE
Conflicts of interest may arise in the relationships of board members and employees with any of the following third parties:
persons and firms supplying goods and services to NF or its members
persons and firms from whom NF leases property and equipment
persons and firms with whom NF is dealing or planning to deal in connection with the gift, purchase or sale of real estate, securities, or other property
competing or affinity organizations
donors and others supporting NF
agencies, organizations and associations that affect the operations of NF
family members, friends, and other employees.
INTERPRETATION OF THIS POLICY
The areas of conflicting interest listed above and the relationships in those areas that may give rise to conflict are not exhaustive. Conflicts might arise in other areas or through other relationships. It is assumed that board members and employees will recognize such conflicts by analogy and ensure that they are disclosed. Any situations that might reasonably lead to a perception of conflict, even where a conflict may in fact not exist, should be avoided.
The fact that one of the interests described exists does not necessarily mean that a conflict exists, or that it is material enough to be of practical importance, or that, upon full disclosure of all relevant facts and circumstances, it is necessarily adverse to the interests of NF.
However, it is the policy of NF that the existence of any of the interests described will be disclosed before any transaction is consummated, using the attached form. It will be the continuing responsibility of the board and employees to scrutinize their transactions, and outside business interests and relationships, for potential conflicts and to immediately make disclosures.
PROCEDURES FOR THIS POLICY
All new Concerned Persons will review a copy of this policy and will acknowledge in writing that they have done so.
All Concerned Persons will annually complete a disclosure form identifying any situations in which they are involved that could contribute to a conflict of interest arising.
NF will follow the guidelines below whenever a disclosure is needed.
Any Concerned Person will disclose any financial interest in a proposed transaction or arrangement.
Disclosure will be made to the executive director or to the board chair. The disclosure will then be brought to the NF board.
When a disclosure is made, the Concerned Person must recuse him/herself from further relevant deliberations.
When a disclosure is made, the board must determine if a conflict does exist, or defer such determination to a disinterested third party to investigate and report back to the board within a specified period of time.
If a conflict exists, the board will determine whether the contemplated transaction or arrangement may be authorized as just, fair, and reasonable to NF. The decision of the board on these matters will rest in their sole discretion.
The board will be guided by the best interests of NF and obtain the most advantageous result for the organization.
Any conflict of interest disclosures will be held in complete confidence.
Date Adopted: June 17, 2016
Name (printed): Kay Paine
Role: Board President
Neighborhood Falmouth Inc. Conflict of Interest Form
I have reviewed and understand Neighborhood Falmouth Inc.’s (NF) Conflict of Interest Policy.
_______ I do not have conflicts of interest, as defined in the Policy.
Should this change I will notify NF.
_______ I do have such conflicts.
Please describe all conflicts or potential conflicts. Attach extra sheets if required.
Name (printed): ________________________________