No transaction(s) in which any board or staff members have material conflicting interests with the charity resulting from any relationship or business affiliation. Factors that will be considered when concluding whether or not a related party transaction constitutes a conflict of interest and if such a conflict is material, include, but are not limited to: any arm's length procedures established by the charity; the size of the transaction relative to like expenses of the charity; whether the interested party participated in the board vote on the transaction; if competitive bids were sought and whether the transaction is one-time, recurring or ongoing.
Information Needed from Charity to Determine Compliance:
The charity provides information about related-party transactions, on a form provided by the Alliance. The Alliance will also review the IRS Form 990 and notes to the charity's financial statements for applicable information about related-party transactions.
This standard does not intend to suggest that every related-party transaction results in a material conflict of interest. As each potential conflict of interest situation presents a different set of circumstances, a definitive statement of when such a conflict occurs is not possible. However, in general, a charity will not meet this standard if one or more of the following circumstances exist: