PA 5140 Case Study Analysis 1 2.1 Conflict of Interest Dream it do it 91023

In the beginning, the conflict of interest given by Valin Brown seems valid because Alberto is a member of the board. The board has the right under The Governing Board's Legal Responsibilities "duty of loyalty, directors are called upon to prioritize the best interest of the organization." Therefore, Alberto's potential business proposal can be seen as a conflict of interest because of his status on the board. Although, obtaining Al's technology proposal would create good leads at a low price, Valin has a valid point in saying, "it does not make since because of the perception that it may appear overbearing to the members outside the board." (Libby, pg. 31). The ethical dilemma in this case is whether to use Al's services and risk a conflict of interest or to look elsewhere and pay the total price for that same service. One would suggest Alberto's services in this case. While he is a board member as stated in the case, the price is so discounted that even getting a new website would cost more than his services. It is hard not to take his offer. The IRS has a questionnaire on "Form 990", which includes whether there is the potential for conflicts of interest within the board. I recommend that they have board members fill out a form at the beginning of their service that outlines their professional lives and any potential conflicts that may arise. According to an article from the Nonprofit Quarterly, "To protect itself legally and politically, must ensure that it has complete documentation of the process and of who was involved (board, staff, and any others) at each stage, including specific information about the votes taken, who attended the meeting, and who voted." (Nonprofit Quarterly, 2019, Procedures). These tools benefit the IRS because when auditing an organization, they can deploy them to ensure the most thorough investigation is complete 1
Documentation also allows board members to re-read what they discuss later and change a decision they had made previously. Because there is a difference between a perceived and actual conflict of interest; many times, especially now, as there are so many independent investigations into nonprofits, they are scared to have any blemishes on their records. Therefore, the board needs to be more cautious about conflicts, leading to perceived conflicts that may not exist. While it is essential to be cautious, it is also important not to limit opportunities. . 2
Works Cited Libby, P., & Deitrick, L. (2017). Cases in nonprofit management a hands-on approach to problem-solving. Los Angeles: SAGE. Conflict of interest and Self-dealing Policy. (n.d.). Retrieved February 31, 2021, from Charity Conflicts of Interest: A Guide - Non Profit News | Nonprofit Quarterly. 3
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