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PTO conflict of interest
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Indian Creek PTO Conflict of Interest Policy
Article I:
Purpose
The purpose of this conflict of interest policy is to protect the Indian Creek Parent Teacher IC PTO (IC PTO) interest when it is contemplating entering into a transaction or arrangement that might benefit the private interest of an officer or event chair of the IC PTO or might result in a possible excess benefit transaction. This policy is intended to supplement but not replace any applicable state and federal laws governing conflict of interest applicable to nonprofit and charitable Organizations.
Article II:
Definitions
1. Interested Person
Any director, principal officer, or event chair with IC PTO delegated powers, which has a direct or indirect financial interest, as defined below, is an interested person.
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 the IC PTO has a transaction or arrangement,
b. A compensation arrangement with the IC PTO or with any entity or individual with which the IC PTO has a transaction or arrangement, or
c. A potential ownership or investment interest in, or compensation arrangement with, any entity or individual with which the IC PTO is negotiating a transaction or arrangement.
Compensation includes direct and indirect remuneration as well as gifts or favors that are not insubstantial.
A financial interest is not necessarily a conflict of interest. Under Article III, Section 2, a person who has a financial interest may have a conflict of interest only if the IC PTO decides that a conflict of interest exists.
Article III:
Procedures
1. Duty to Disclose
In connection with any actual or possible conflict of interest, an interested person must disclose the existence of the financial interest and be given the opportunity to disclose all material facts to the directors and members of the IC PTO considering the proposed transaction or arrangement.
2. Determining Whether a Conflict of Interest Exists
After disclosure of the financial interest and all material facts, and after any discussion with the interested person, he/she shall leave the IC PTO meeting while the determination of a conflict of interest is discussed and voted upon. The remaining board and IC PTO members shall decide if a conflict of interest exists.
3. Procedures for Addressing the Conflict of Interest
a. An interested person may make a presentation at the IC PTO meeting, but after the presentation, he/she shall leave the meeting during the discussion of, and the vote on, the transaction or arrangement involving the possible conflict of interest.
b. The chairperson of the IC PTO shall, if appropriate, appoint a disinterested person or committee to investigate alternatives to the proposed transaction or arrangement.
c. After exercising due diligence, the IC PTO shall determine whether the IC PTO 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.
d. If a more advantageous transaction or arrangement is not reasonably possible under circumstances not producing a conflict of interest, the IC PTO shall determine by a majority vote of the disinterested members in attendance whether the transaction or arrangement is in the IC PTO’s best interest, for its own benefit, and whether it is fair and reasonable. In conformity with the above determination it shall make its decision as to whether to enter into the transaction or arrangement.
4. Violations of the Conflicts of Interest Policy
a. If the IC PTO has reasonable cause to believe a member has failed to disclose actual or possible conflicts of interest, it shall inform the member of the basis for such belief and afford the member an opportunity to explain the alleged failure to disclose.
b. If, after hearing the member’s response and after making further investigation as warranted by the circumstances, the IC PTO determines the member has failed to disclose an actual or possible conflict of interest, it shall take appropriate disciplinary and corrective action.
Article V:
Records of Proceedings
The meeting minutes of the IC PTO shall contain:
a. The names of the persons who disclosed or otherwise were found to have a financial interest in connection with an actual or possible conflict of interest, the nature of the financial interest, any action taken to determine whether a conflict of interest was present, and the IC PTO’s decision as to whether a conflict of interest in fact existed.
b. The names of the persons who were present for discussions and the results of votes relating to the transaction or arrangement, the content of the discussion, including any alternatives to the proposed transaction or arrangement.
Article V:
Compensation
a. No member of the IC PTO shall receive any compensation for services from the IC PTO. All officer positions are unpaid and voluntary.
Article VI:
Annual Statements
Each officer with IC PTO delegated powers shall annually sign a copy of this policy which affirms such person:
a. Has received a copy of the conflicts of interest policy,
b. Has read and understands the policy,
c. Has agreed to comply with the policy, and
d. Understands the IC PTO is charitable and in order to maintain its federal tax exemption it must engage primarily in activities which accomplish one or more of its tax-exempt purposes.
Article VII:
Periodic Reviews
a. To ensure the IC PTO operates in a manner consistent with charitable purposes and does not engage in activities that could jeopardize its tax-exempt status, periodic reviews shall be conducted.
Article VIII:
Use of Outside Experts
When conducting the periodic reviews as provided for in Article VII, the IC PTO may, but need not, use outside advisors. If outside experts are used, their use shall not relieve the IC PTO of its responsibility for ensuring periodic reviews are conducted.
