Saturday, February 10, 2007

Procedure for Conflict of Interest - Implemented by one Monthly Meeting

Should this policy be adopted by NYYM?
(or any Yearly Meeting)


Purpose: The purpose of this procedure is to protect this tax exempt organization’s interest when it is contemplating entering into a transaction or arrangement that might benefit the private interest of an officer of the Meeting, Clerk or Treasurer, or might result in a possible excess benefit transaction. This policy is meant to supplement but not replace any applicable state or federal laws governing conflict of interest applicable to nonprofit and charitable organizations.
Definitions:

1. Interested Person – Any officer or member of a committee with delegated powers who has direct or indirect financial interest.

2. Financial Interest – A person has a financial interest if the person has, directly or indirectly, through business, investment or family: a. An ownership or investment interest in any entity with which Meeting has a transaction or arrangement b. A compensation arrangement with Meeting or with any entity or individual with which Meeting has a transaction or arrangement, or c. A potential ownership or investment interest, or compensation arrangement with, any entity or individual with which Meeting is negotiating a transaction or arrangement.

Compensation includes direct and indirect remuneration as well as gifts or favors that are not insubstantial. Some members of NYYM receive compensation from NYYM. These are most of the full and part time staff

A financial interest is not necessarily a conflict of interest. A person who has a financial interest may have a conflict of interest only if the trustees and Monthly Meeting decides that a conflict of interest exists.

Procedure:
Responsibility Action

Interested Person 1. Discloses the existence of the financial interest.

2. Arranges a meeting to disclose all material facts to the trustees and officers of the Meeting considering the proposed transaction or arrangement.

3. During the meeting and after the presentation has been made disclosing the conflict of interest, leaves the meeting.

Officers and trustees 4. Decides whether or not a conflict of interest exists.

5. Appoints a disinterested person or committee to investigate alternatives to the proposed transaction or arrangement.

6. If a more advantageous transaction or arrangement is not reasonably possible, determines whether or not the transaction or arrangement is in the Meeting’s best interest and whether or not it is fair and reasonable.

7. Agrees to enter into the transaction or arrangement.

8. If the officers and trustees have reasonable cause to believe a member has failed to disclose actual or possible conflict of interest, informs the member of an opportunity to explain the alleged failure to disclose.

9. If the member has failed to disclose an actual or possible conflict of interest, takes appropriate corrective action.

10. Documents the nature of the failure to disclose the conflict of interest including the name(s) of members involved and the details of the conflict of interest.

Annually
11. Receives a copy of the procedure.

12. Reads, understands and agrees to comply with the procedure.

13. Understands the Meeting is charitable and engages in activities which accomplish its tax exempt purposes.

14. Signs the attached document that they affirm that they will comply with the procedure.

Signed By: Date: