Mentoring  Canada - A service of Big Brothers and Sisters of Canada The fundamentals of effective board involvement
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2. The Board's Context
 
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Crush Conflict of Interest (exercise)

To ensure effective stewardship, one of your non-profit board's main tasks is to understand its role to safeguard public trust and to avoid conflicts of interest. But are you up to the task? Would you spot a conflict of interest if you saw one?

Have a look at the following list of situations that could occur in a non-profit organization. For those that do not pose a conflict of interest, click on the trophy cup. Crush conflict of interest situations by clicking on the gavel.

CONFLICT?

CRUSH IT !

WIN-WIN!

A board member votes to renew the organization's office lease in a building that he owns.


The part-time Executive Director takes on a paid personal contract to develop a fundraising program for a similar organization that competes with your organization for funds in the same community.


The vice president's wife has bid on a contract to evaluate the organization's programs. The board awards her the contract after the vice president discloses his financial interest to the board and abstains from voting on the contract award.


A board member who is also a service user is placed at the top of the waiting list for services, ahead of others who applied for the services earlier than the board member.

The board president accepts a $500 cheque made out in his name, in recognition of a conference presentation he delivered on behalf of the organization.

The organization purchases a computer system from a board member's business after receiving three less competitive quotes.

The Executive Director is given an honorarium for assisting another organization to develop its personnel policies, using her organization's policies as a model. She discloses the honorarium to the board and makes a donation to the organization in the same amount as the gift.

A board member serves on another board in the community, and is approaching the same donors for contributions on behalf of both organizations.

Did you crush conflict of interest in your organization? If not, you may want to review the board's understanding of its role or learn more about conflicts of interest specifically.

If you maintained the public's trust in your organization, move on to learn about your board's fiscal responsibility.

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