This policy is intended to supplement, but not replace, federal and state laws governing conflicts of interest applicable to nonprofit corporations. It applies to board members and staff with significant decision-making authority. Persons covered under this policy, as well as their relatives and associates, are hereinafter referred to as “interested parties.”A conflict of interest may exist when the interests or concerns of an interested party may be seen as competing with the interests or concerns of PVARF. There are a variety of situations that raise conflict of interest concerns including, but not limited to, the following:
A. Financial Interests: A conflict may exist where an interested party directly or indirectly benefits or profits as a result of a decision, policy or transaction made by PVARF. Examples include situations where:
- PVARF contracts to purchase or lease goods, services, or properties from an interested party.
- PVARF offers employment to an interested party, other than a person who is already employed by PVARF.
- An interested party is provided with a gift, gratuity, or favor of a substantial nature from a person or entity that does business or seeks to do business with PVARF.
- An interested party is gratuitously provided use of the facilities, property, or services of PVARF.
- PVARF adopts a policy that financially benefits an interested party.
A financial interest is not necessarily a conflict of interest. A financial conflict of interest exists only when the board decides a person with a financial interest has a conflict of interest.
B. Other Interests: A conflict also may exist where an interested party obtains a non- financial benefit or advantage that he/she would not have obtained absent his/her relationship with PVARF. Examples include where:
- An interested party seeks to obtain preferential treatment by PVARF or recognition for himself/herself or another interested party.
- An interested party seeks to make use of confidential information obtained from PVARF for his/her own benefit (not necessarily financial) or for the benefit of another interested party.
- An interested party seeks to take advantage of an opportunity or enables another interested person or other organization to take advantage of an opportunity that he/she has reason to believe would be of interest to PVARF.
- PVARF adopts a policy that provides a significant nonfinancial benefit to an interested party.
A conflict of interest exists only when the Board of Directors decides there is a conflict.