The purpose of this policy is to describe how the organization avoids and/or manages real or perceived conflicts of interest in the operation of the membership association. This policy is focused upon material financial interests, and is a required document for purposes of annually filing Internal Revenue Service Form 990.
TXBC board members have an obligation to manage the membership association within guidelines that prohibit actual or potential conflicts of interest.
This conflict of interest policy for TXBC: (1) defines conflicts of interest; (2) identifies personnel within the association covered by this policy; (3) facilitates disclosure of information that may help identify conflicts of interest; and (4) specifies procedures to be followed in managing conflicts of interest:
- An actual or potential conflict of interest occurs when TXBC board members are in a position to influence a decision that may result in personal or professional gain for them or a family member. The conflict arises if the TXBC board member in the decision-making position will benefit financially from the decision, including indirect benefits such as to family members or businesses with which the person is closely associated.
- TXBC board member covered by this conflict of interest policy are the coalition’s members, paid or contracted staff, and those serving in volunteer leadership positions (such as committee and task force chairs and members).
- The board of directors annually sign a statement supporting TXBC’s statement of purpose and fundamental principles (as found in the by-laws), and a statement regarding conflicts of interest. Board Members covered by this policy will disclose their interests that could give rise to conflicts of interest, such as a list of family members, substantial business or investment holdings, and other transactions or affiliations with businesses and other organizations or those of family members. In addition, the Chair of the Board or leader of any committee meeting shall remind attendees at the meeting of the conflict of interest policy (e.g., by reading a conflict of interest policy statement or providing it with the agenda materials).
- Procedures to manage conflicts. For each interest disclosed to the Chair, the Chair will determine whether to: (a) take no action; (b) assure full disclosure to the Board of Directors and other individuals covered by this policy; (c) ask the person to recuse him/herself from participation in related discussions or decisions within the association; (d) ask the person to resign from his or her position in the association; (e) if resignation is refused, to initiate procedures for removal of that person from that position. TXBC’s Chair and treasurer will monitor proposed or ongoing transactions for conflicts of interest and disclose them to the Chair in order to assess potential or actual conflicts, whether discovered before or after the transaction has occurred.
“Conflict of interest” (actual or potential conflict of interest) occurs when TXBC personnel are in a position to influence a decision that may result in personal or professional gain for them or a family member. The conflict arises if the TXBC personnel in the decision-making position will benefit financially from the decision, including indirect benefits such as to family members or businesses with which the person is closely associated.
“Family member” is any person who is related by blood or marriage, or whose relationship with the board member or employee is similar to that of persons who are related by blood or marriage.
“Personnel” includes those serving TXBC in paid or volunteer roles, contract employees, board members, and leaders (such as Committee and Task Force Chairs and/or members).