Conflict of Interest Policy
It is expected that all those associated with NSI shall exercise strict rules of honesty and fair dealing between themselves and NSI. They shall not use their positions within NSI, or knowledge gained thereof, so that any conflict might arise between the interest of NSI and that of the individual.
Directors of a not-for-profit corporation are required by law to be loyal to the corporation. Their fiduciary relationship includes the responsibility to administer its affairs honestly and economically, and to exercise their best care, skill and judgment for the sole benefit of the corporation.
In the strictest sense, the law requires only the Director to declare a conflict of interest if one exists, and abstain from voting on issues where there is a conflict of interest. Members of committees may or may not be Directors. However, the spirit of the law covering conflict of interest should apply to everyone in a close working relationship with NSI.
Employees of NSI owe a duty of loyalty, and as a policy matter, must also avoid a conflict of interest with NSI.
It is the policy of NSI that all conflicts of interest, including potential interests, shall be disclosed. Members of the Board, as well as the advisory boards/committees of NSI, and employees should periodically review their vocational and avocational activities to determine and disclose any potential conflicts of interest. When in doubt, the rule is to disclose.
Directors and advisory boards/committee members shall refrain from voting upon or participating in any Board or advisory board/committee action involving the entity with which they may have a conflict of interest. It is difficult to anticipate all circumstances where conflicts of interest may develop. By way of example, individual Board or advisory board/committee members are considered to have a conflict of interest when asked to vote on a grant to an organization with which they have a formal affiliation, when they are asked to vote on an issue in which an existing or potential financial material interest exists, or where the promise of a favor from other sources might be perceived to influence their decisions in a specific area.
It is NSI’s policy to endeavor to establish business relationships consistent with the goals, objectives, and needs of the organization. This does not prohibit NSI from doing business with anyone, including organizations or entities associated with members of its Board, advisory boards/ committees, and employees. However, no special consideration will be given to those individuals. Any contract or transaction between NSI and one or more of its Directors, or between NSI and any other corporation, firm, association, or entity in which one or more of its Directors have a substantial financial interest shall be entered into only after the material facts are fully disclosed to the Board and the transaction is approved by a majority of disinterested Directors, in accordance with non-profit law.
Employees shall avoid any conflicts of interest with NSI. No employee shall have any interest in any entity that does business with NSI without the prior written approval of the President, after full disclosure. No employee shall hold any position with any not-for-profit organization that may have been or may become a grantee of NSI, or which may be reasonably considered to compete for funding with other nonprofits that are or may become grantees, without full disclosure and prior approval by the President.
Acknowledgment and Disclosure
Each individual, whether Board member, advisory board/committee member, or employee, associated with NSI shall annually file a disclosure statement with the President
The disclose shall include current positions or relationships in which they are involved or which may pose a potential conflict of interest, and shall further disclose any subsequently established relationship that may be perceived to be a potential conflict of interest. If the potential for conflict is uncertain, disclosure is required.