COLLIE JUNIOR FOUNDATION
CONFLICT OF INTEREST POLICY
Article I
Purpose
The purpose of the conflict of interest policy is to protect the interest of the Collie Junior Foundation (hereafter referred to as “Foundation”) when it is awarding scholarships, when a scholarship applicant is related to or known to an officer or director of the Foundation or related to or known to any other member of the Scholarship Team, and to avoid awarding scholarships that could be regarded as for the benefit of the personal interest of an officer or director of the Foundation or the personal interest of any other member of the Scholarship Team. This policy is intended to supplement but not replace any applicable state and federal laws governing conflict of interest applicable to nonprofit and charitable organizations.
Article II
Definitions
1. Interested Person: Any director, officer, or member of a committee with governing Board delegated powers, who has a direct or indirect financial interest, as defined below, is an interested person.
2. Financial Interest: A person has a financial interest if the person has, directly or indirectly, through business, investment, or family:
a. A personal relationship with any applicant for a scholarship,
b. A personal relationship with the family of any applicant for a scholarship, or
c. Otherwise knows or has personal knowledge of a scholarship applicant, when such knowledge is not generally known to or available to other members of the Scholarship Team.
Personal interest includes direct and indirect knowledge of a scholarship applicant or an applicant’s family which includes a member of the family of a scholarship applicant or a relationship with an educational institution at which a scholarship applicant may use scholarship funds awarded by the scholarship award committee.
A personal interest is not necessarily a conflict of interest. Under Article III, Section 2, a person who has a personal interest may have a conflict of interest only if the Scholarship Team decides that a conflict of interest exists.
Article III
Procedures
1. Duty to Disclose: In connection with any actual or possible conflict of interest, an interested person must disclose the existence of the personal interest and be given the opportunity to disclose all material facts to the directors and members of the Scholarship Team considering scholarship applications.
2. Determining Whether a Conflict of Interest Exists: After disclosure of the personal interest and all material facts, and after any discussion with the interested person, he/she shall leave the Scholarship Team meeting while the determination of a conflict of interest is discussed and voted upon. The remaining Scholarship Team 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 at the Scholarship Team meeting, but after the presentation, he/she shall leave the meeting during the discussion of, and the vote on, whether the personal interest disclosed amounts to a possible conflict of interest.
b. If the chairperson of the Scholarship Team discloses a personal interest, a temporary chair shall be elected to handle discussion of and voting on the potential conflict of interest.
c. After exercising due diligence, the Scholarship Team shall determine whether the person who has disclosed a personal interest can participate in discussion of and voting on the applicant relating to the personal interest and whether the personal interest is such that the person who disclosed the personal interest must be excused from participation in discussion of and voting on a particular group of scholarship applicants to avoid even the appearance of a conflict of interest.
d. If more than one member of a Scholarship Team discloses a personal interest, each personal interest shall be considered and voted upon separately. In the event disclosure of multiple personal interests makes it impossible or impractical for a Scholarship Team to proceed or if resolution of disclosed personal interests makes it impossible for a Scholarship Team to proceed with its work, the committee shall disqualify itself and prepare a written message to the Board of Directors outlining the reasons the committee is unable to proceed with its business and the Board of Directors shall thereafter act promptly to appoint a new Scholarship Team to avoid conflicts of interest disclosed in the report received from the self-disqualified Scholarship Team.
4. Violations of the Conflicts of Interest Policy:
a. If the Board of Directors or Scholarship Team has reasonable cause to 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 explain the alleged failure to disclose.
b. If, after hearing the member’s response and after making further investigation as warranted by the circumstances, the Board of Directors or Scholarship Team determines the member has failed to disclose an actual or possible conflict of interest, it shall take appropriate disciplinary and corrective action.
Article IV
Records of Proceedings
The minutes of the Scholarship Team shall contain:
a. The names of the persons who disclosed or otherwise were found to have a personal interest in connection 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 Scholarship Team’s decision as to whether a conflict of interest in fact existed.
b. The names of the persons who were present for discussions and votes relating to the personal interest disclosed, the content of the discussion, and a record of any votes taken in connection with the proceedings.
Article V
Annual Statements
Each director, officer and Scholarship Team member serving on the Scholarship Team shall, at the commencement of the first meeting of the Scholarship Team affirm that such person:
a. Has received a copy of the Conflict of Interest Policy;
b. Has read and understands the policy;
c. Has agreed to comply with the policy via written consent; and,
d. Understands the Foundation is charitable and in order to maintain its federal tax exemption it must engage primarily in activities which accomplish one or more of its tax-exempt purposes and understands that the Foundation desires to avoid even the appearance of a conflict of interest in awarding scholarships.
Article VI
Periodic Reviews
To ensure the Foundation operates in a manner consistent with charitable purposes and does not engage in activities that could jeopardize its tax-exempt status, or give the appearance of personal interest of Scholarship Team members influencing the award of scholarships, periodic reviews shall be conducted. The periodic reviews shall, at a minimum, include the following subjects:
a. Whether the scholarship application process is reasonable, resulting in scholarship applications reaching the widest appropriate audience, and resulting in eligible students applying for scholarships.
b. Whether the composition of the Scholarship Team and the selection procedures employed by the Scholarship Team conform to the Foundation’s written policies, are properly recorded, reflect reasonable efficiency and results in awarding scholarships, further the charitable purposes of the Foundation, do not result in impermissible personal benefit, and do not result in actual or perceived conflicts of interest in the application or award process.
Article VII
Use of Outside Experts
When conducting the periodic reviews as provided for in Article VI, the Foundation may, but need not, use outside advisors. If outside experts are used, their use shall not relieve the Board of Directors of its responsibility for ensuring periodic reviews are conducted.