I had a note from a reader:
Kerch – I just bought your book and look forward to working through it. I have a question. Are you aware of new rules that require nonprofits to have a privacy promise and/or a conflict of interest agreement incorporated in the bylaws?
Thanks for buying the book..and thanks for the question.
I am not aware of any new rules about conflict of interest policy on the federal level. However, your state may have them. You should check with a local attorney.
Or you could write the policy and include in your bylaws that the policy must be signed by board members annually or at the start of their term.. or what ever you choose.
According to the fed website this morning, the “policy” itself is not required to be part of the bylaws.
Line 5a. A “conflict of interest” arises when a person in a position of authority over an organization, such as a director, officer, or manager, may benefit personally from a decision he or she could make. A Sample Conflict of Interest Policy is included as Appendix A.
Adoption of a conflict of interest policy is not required to obtain tax-exempt status. However, by adopting the sample policy or a similar policy, you will be choosing to put in place procedures that will help you avoid the possibility that those in positions of authority over you may receive an inappropriate benefit.
Good luck with your project. And if you have any other questions, please holler.