Archive for July 14th, 2008

New Measure for Living Wage and Poverty

Monday, July 14th, 2008

I support New York City Mayor’s poverty gauge.  It is a more accurate measure of the costs necessary to live.  The Federal governments standard is outdated.  The New York measures are a better gauge for what should be included in the calculation of the Living Wage of a geographic area.  The Washington Post reports the National Academy of Sciences proposed the new method to Congress in 1995.

California Teens Think Globally, Act Locally

Monday, July 14th, 2008

This is a really great article. It comments on the many different ways teens from the Silicon Valley region of California are helping people all over the world. It’s true that 9/11 helped the youth of today to realize that there is more going on in the world than their high school and MTV.

Preservation of the Past with Skills for the Future

Monday, July 14th, 2008

Youthful offenders are learning skills to use for employment when they get released by restoring old Diners.  This is a great example of how to take two needs and create a better outcome for both.  This New York Times article reviews the youthful offenders program in Rhode Island.

Conflict, Financial Gain or Coincidence

Monday, July 14th, 2008

 Nonprofit Board Conflict of Interest

Photo by Shyald

The game of chess is not only a board game but the constant movement of strategically placed decisions.

The Boston Globe reported that three Board Members of Boston Public Library with business ties to City vote to support the Mayors wishes to oust Executive Director.  Do these Board Members meet the Conflict of Interest test or the trust test? Regardless of whether anyone agrees or not that the city had influenced over the vote, these three members should have abstained to assure the public that there was no conflict.  The fact that they held city contracts and the city was advocating the Executive Directors removal meant that the board member had an interest in the business of the city and keeping that relationship.

It is up to a court to decide whether the vote was tarnished sufficiently to give the former Executive Director legal recourse.  It is up to the former Executive Director whether to take legal action against the organization to nullify the vote base on nondisclosure by the board members to the full board.

The IRS Conflict of interest disclosure is the best one to follow because there is no latitude for disclosing to your follow members what might or might not be consider a conflict.  It is not the individual members right to choose when to disclose or what is a conflict.  Up front at the time of selection as board member ties to the city should have been disclosed.  If there was a change in status while on the Board that should have been disclosed.

For your ease below is information from the IRS web site.

“Form 1023: Purpose of Conflict of Interest Policy
What is the purpose of the conflict of interest policy?Charitable organizations are frequently subject to intense public scrutiny, especially where they appear to have inappropriately benefited their officers, directors, or trustees.  The IRS also has an oversight role with respect to charitable organizations.  An important part of this oversight is providing organizations with strategies that will help avoid the appearance or actuality of private benefit to individuals who are in a position of substantial authority.  The recommended conflict of interest policy is a strategy we encourage organizations to adopt as a means to establish procedures that will offer protection against charges of impropriety involving officers, directors, or trustees.A conflict of interest occurs where individuals’ obligation to further the organization’s charitable purposes is at odds with their own financial interests.  For example, a conflict of interest would occur where an officer, director, or trustee votes on a contract between the organization and a business that is owned by the officer, director or trustee.  Conflicts of interest frequently arise when setting compensation or benefits for officers, directors, or trustees.  A conflict of interest policy is intended to help ensure that when actual or potential conflicts of interest arise, the organization has a process in place under which the affected individual will advise the governing body about all the relevant facts concerning the situation.  A conflict of interest policy is also intended to establish procedures under which individuals who have a conflict of interest will be excused from voting on such matters.Apart from any appearance of impropriety, organizations will lose their tax exempt status unless they operate in a manner consistent with their charitable purposes. Serving private interests more than insubstantially is inconsistent with accomplishing charitable purposes.  For example, paying an individual who is in a position of substantial authority excessive compensation serves a private interest.  Providing facilities, goods, or services to an individual who is in a position of substantial authority also serves a private interest unless the benefits are part of a reasonable compensation arrangement or they are available to the public on equal terms and conditions.”

Due to the nature of the vote and what I find as a conflict of interest by these 3 board members I recommend that donors withhold giving to the Boston Public Library until the Board adequately deals with this issue of disclosure, takes appropriate action and announces to the public that action they have taken.