Purpose The purpose of this Conflict of Interest Policy is to protect the integrity, credibility, and reputation of ejabh organization. This policy ensures that decisions made by the Board of Directors, officers, staff, and volunteers are based on the best interests of the organization and not influenced by personal or financial gain. Conflicts of interest may arise when personal relationships, outside interests, or financial considerations could compromise or appear to compromise an individual’s judgment, loyalty, or objectivity.
Scope This policy applies to all members of the Board of Directors, officers, key employees, contractors, and volunteers of ejabh organization. It covers any situation in which an individual’s personal, professional, or financial interests could conflict with those of the organization. Examples include financial dealings with vendors, relationships with grantees or beneficiaries, acceptance of gifts, or participation in decision-making processes that directly or indirectly benefit an individual.
Definitions A conflict of interest is defined as any situation in which an individual’s obligations to ejabh organization are compromised by personal interests. Examples include: – Direct or indirect financial interest in a transaction or contract involving the organization. – Close family relationships with vendors, partners, or beneficiaries of the organization. – Receipt of gifts, favors, or other benefits of significant value from entities or persons doing business with the organization. – Dual roles that may impair impartial decision-making.
Duty to Disclose All directors, officers, and key staff members are required to disclose any potential or actual conflict of interest. Disclosures must be made annually in writing and whenever a situation arises that presents aconflict. The disclosure should include the nature of the conflict, parties involved, and any relevant financial interests. The Secretary of the Board shall maintain a record of all disclosures.
Procedures When a potential conflict of interest is disclosed, the following steps will be taken: a) The interested person shall leave the meeting while the matter is discussed and voted upon. b) The remaining Board members shall determine whether a conflict exists. c) If a conflict is determined, the Board shall decide whether the transaction or arrangement is in the best interests of ejabh organization. d) The decision, rationale, and abstentions shall be documented in the minutes.
Records of Proceedings The minutes of the Board and committees shall contain: – The names of individuals who disclosed potential conflicts. – The nature of the conflict. – The Board’s decision and any alternative options considered. – The final action taken.
Compensation Board members who receive compensation, directly or indirectly, from ejabh organization are precluded from voting on matters related to their own compensation. However, they may provide information to assist in decision-making.
Annual Statements Each director, officer, and key employee shall sign an annual statement affirming that they: – Have received a copy of this Conflict of Interest Policy. – Have read and understand the policy. – Agree to comply with the policy. – Understand that ejabh organization is charitable and must maintain its tax-exempt status.
Periodic Reviews To ensure compliance with legal and ethical standards, periodic reviews shall be conducted. These reviews will verify that transactions and arrangements are consistent with the mission of ejabh organization and do not result in inurement, excess benefit, or private advantage.
Enforcement Violations of this policy shall result in disciplinary action, which may include removal from the Board, termination of employment or volunteer service, or referral to appropriate legal authorities. All decisions regarding enforcement shall be made by the Board of Directors and documented.
Acknowledgment All individuals covered under this policy shall sign an acknowledgment form each year. This form will confirm their awareness of the policy, their duty to disclose conflicts, and their commitment to act in the best interests of ejabh organization.
