Board members and volunteers should be aware that conflicts of interest can arise through various relationships including, but not limited to, family relationships, economic relationships, and personal or intimate relationships.
No director or volunteer of the 4-H Foundation shall operate or act in any manner that is contrary to the best interests of the Foundation.
Conflict of Interest is created when a director or volunteer (or a family member, or other person with whom the director or volunteer has a close relationship):
- Is a party to a contract, or involved in a transaction, involving the provision of goods or services to the 4-H Foundation other than a voluntary basis and free of charge.
- Has a material financial interest in an entity providing goods or services to the 4-H Foundation other than on a voluntary basis and free of charge.
- Is engaged in some capacity or has a material financial interest in a business or enterprise that competes with the 4-H Foundation.
- Owes a duty of loyalty to any organization or person whose interests might conflict with those of the 4-H Foundation or otherwise has divided loyalties (also known as a “duality of interest”).
- Otherwise has a personal interest that conflicts with the interests of the 4-H Foundation.
A conflict of interest can result in financial gain to persons able to influence the 4-H Foundation’s actions and can lead to violations of IRS regulations and financial penalties. A conflict of interest also can result in the appearance of a lack of integrity in the 4-H Foundation’s decision-making conflicts of interest.
Directors and volunteers should avoid situations in which they may be called upon to negotiate or do business with an organization in which the director or volunteer (or family member or other person with whom the director or volunteer has a close personal relationship) has substantial ownership or other interest.