230-07-075 - Conflicts of interest
230-07-075. Conflicts of interest
(1) Charitable or nonprofit organizations have an independent operating environment when their officers or board members and supervisory level employees have completely separated their personal interests from the interests of the organization.
(2) If individual officers or board members acknowledge potential conflicts of interest and abstain from voting on issues that directly or indirectly affect their personal interest, the organization is operating independently.
(3) The governing board of the organization must review any potential conflicts of interest involving supervisory level employees. They must record all discussions or balloting regarding potential conflicts of interest in the official meeting minutes.
(4) We will presume organizations lack an independent operating environment if the governing board fails to approve and document in the official meeting minutes any of the following by the officers, board members, or supervisory level employees:
(a) Receiving, directly or indirectly, financial or personal benefit from the organization or share in gambling proceeds of the organization; or
(b) Supervising, directly or indirectly, or having decision-making authority over transactions that may result in direct or indirect financial or personal benefit to:
(i) Their direct relatives; or
(ii) Persons with whom they maintain a common household; or
(iii) Persons with whom they have a business relationship; or
(c) Allowing others, directly or, through lack of action, indirectly, to receive or share in the gambling proceeds of the organization.
Statutory Authority: RCW 9.46.070. 07-10-032 (Order 609), § 230-07-075, filed 4/24/07, effective 1/1/08.
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