Conflict of Interest

CONFLICT OF INTEREST POLICY term I Purpose The purpose of the troth of affaire policy is to protect b all(prenominal) field Cut Loyalty Canine Rescue and Pit Bull Rehabilitation, Inc. s (herein memorial tablet) interest when it is contemplating entering into a proceeding or position that might benefit the private interest of an ships officer or theater reador of the Organization or might outgrowth in a executable surfeit benefit dealings. This policy is intended to supplement but not replace some(prenominal) applicable state and federal laws governing conflict of interest applicable to nonprofit and charitable organizations. Article II Definitions . implicated Person Any director, principal officer, or fellow ingredient of a committee with governing board delegated powers, who has a direct or indirect pecuniary interest, as defined below, is an interest grouped Person. 2. Financial Interest A psyche has a financial interest if the person has, right away or in at once, by dint of business, investment, or family a. An ownership or investment interest in every entity with which the Organization has a work or sight, b. A allowance arrangement with the Organization or with any(prenominal) entity or individual with which the Organization has a transaction or arrangement, or . A potential ownership or investment interest in, or compensation arrangement with, any entity or individual with which the Organization is negotiating a transaction or arrangement. Compensation embroils direct and indirect remuneration as well as gifts or favors that be 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 tabular array of Directors decides that a conflict of interest exists. 3. add-in of Directors The directors, collectively, of the Organization. Article IIIProcedures 1. Duty to Disclose In association with any actual or possible conflict of interest, an Interested Person must disclose the conception of the financial interest and be hitn the opportunity to disclose all natural occurrences to the mature of Directors relating to the proposed transaction or arrangement. 2. Determining Whether a contradict 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 circuit board of Directors meeting while the determination of a conflict of interest is discussed and votingd upon.The rest board 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 to the plank of Directors, 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 Board of Directors shall, if appropriate, appoint a disinterested person or committee to analyse alternatives to the proposed transaction or arrangement. c.After exercising due diligence, the Board of Directors shall determine whether the Organization can obtain with tenable 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 hazard not producing a conflict of interest, the Board of Directors shall determine by a majority vote of the disinterested directors whether the transaction or arrangement is in the Organizations best interest, for its own benefit, and whether it is fair and reasonable.In accommodateity with the supra 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 Board of Directors has reasonable cause t o 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 rationalise the alleged failure to disclose. . If, after hearing the members reaction and after making further investigation as warranted by the circumstances, the Board of Directors determines the member has failed to disclose an actual or possible conflict of interest, it shall collect appropriate disciplinary and corrective action. Article IV Records of Proceedings The proceeding of the Board of Directors meeting shall contain a.The names of the persons who disclosed or otherwise were found to have a financial interest in data link 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 Board of Directors decision as to whether a conflict of interest in fact existed. b. The names of the p ersons who were present for discussions and votes relating to the transaction or arrangement, the content of the discussion, including any alternatives to the proposed transaction or arrangement, and a record of any votes taken in connection with the proceedings.Article V Compensation a. A voting member of the Board of Directors who receives compensation, directly or indirectly, from the Organization for services is precluded from voting on matters pertaining to that members compensation. b. A voting member of any committee whose jurisdiction includes compensation matters and who receives compensation, directly or indirectly, from the Organization for services is precluded from voting on matters pertaining to that members compensation. c.No voting member of the Board of Directors whose jurisdiction includes compensation matters and who receives compensation, directly or indirectly, from the Organization, either individually or collectively, is prohibited from providing information t o any committee regarding compensation. Article VI Annual Statements Each director, principal officer and member of a committee with governing board delegated powers shall annually augury a statement which affirms such person a. Has received a sham of the conflicts of interest policy, . Has read and understands the policy, c. Has agreed to comply with the policy, and d. Understands the Organization is charitable and in order to maintain its federal tax exemption it must charter primarily in activities which accomplish one or more of its exempt purposes. Article VII Periodic Reviews To ensure the Organization operates in a manner consistent with charitable purposes and does not engage in activities that could pretend its tax-exempt status, periodic reviews shall be conducted.The periodic reviews shall, at a minimum, include the following subjects a. Whether compensation arrangements and benefits are reasonable, based on competent wad information, and the result of arms length b argaining. b. Whether partnerships, joint ventures, and arrangements with management organizations conform to the Organizations written policies, are properly recorded, reflect reasonable investment or payments for goods and services, further charitable purposes and do not result in inurement, impermissible private benefit or in an excess benefit transaction.