CONFLICT OF INTEREST
Policy Statement:
MIST is a non-profit, tax exempt, 501(c)(3) organization. There exists between MIST and its board, employees, volunteers, and the public a fiduciary duty, which carries with it a broad and unbending duty of loyalty, duty of care, and duty of obedience requiring the best care, skills, and judgments for the sole benefit of MIST. These persons shall exercise the utmost good faith in all transactions involved in their duties, and they shall not use their position with MIST or knowledge gained therefrom for their personal benefit that is subject to scrutiny by and accountable to IRS, and state regulatory and tax bodies. In order to keep and maintain MIST’s tax-exempt status, which is crucial for its continued financial stability and for public support and donor confidence, all such persons shall be subject to MIST’s Conflict of Interest Policy.
Conflict of Interest Disclosure Form:
https://form.jotform.com/203246268765159
Definitions:
Conflict of Interest (also Conflict) means a conflict, actual or perceived, or the appearance of a conflict, between the private interests and official responsibilities of a person in a position of trust. Persons in a position of trust include but are not limited to employees, directors and Board members.
Board member means voting members of the Board of Trustees.
Employee means a person who receives compensation in exchange for services and time and labor to MIST.
Volunteer means a person who does not receive compensation for services (and is not an officer) provided to MIST and retains a significant independent decision-making authority to commit resources of the organization.
Contractor means an individual, entity, and/or a corporation which performs work for MIST and receives compensation and is outside of the MIST structure.
Covered persons includes any board member, director, staff, or employee, as well as their family members, household relationships, and affiliations.
Scope:
This conflict of interest policy applies to the Executive Director and all employees, Board members, National Directors, Regional Directors and Associate Directors who currently or within the immediate twelve months preceding and following the beginning of their term of service/employment as well as their family members, household relationships and affiliations referred to collectively as “covered persons” engage on behalf of MIST in any grant, business transaction, financial dealings or paid contracts reportable to the immediate supervisor of that role.
There are five general steps to management and resolution of transactions, paid contracts, dealings involving real or perceived Conflicts of Interest.
These steps include:
1. Disclosure
2. Conflict Identification
3. Conflicted Party Recusal
4. Assignment and Disinterested Review
5. Resolution
Types of Conflict of Interest:
Possible conflicts of interest include but are not limited to:
Direct Conflict, where the covered person, their immediate family (through marriage or blood), and/or a company owned by the Board Member or their immediate family (through marriage or blood) are providing goods and/or services to MIST.
Indirect Conflict, where the covered person’s other close relatives, friends, or their companies are providing goods and/or services to MIST.
Self-dealing in which a covered person causes MIST to enter into a transaction with him/herself, another covered person, or another organization that benefits the dealing covered person. The covered person is on both sides of the “deal/negotiation.”
Outside employment, in which the interests of the job contradict with MIST.
Family interests include a spouse, child, sibling, or parent, who is employed (or applies for employment) or where goods or services are purchased from such a relative or a firm controlled by a relative.
Gifts from friends who also do business with MIST.
Inter or Intra ethnic group cultural and emotional association.
Required Disclosure of Affiliations and Relationships:
Annual Disclosure:
At the time of appointment or employment, all board members, directors, staff, or employees must complete a Conflict of Interest Disclosure Form. Board of Trustee members, employees, Executive Directors, National Directors, Regional, and Associate Directors, shall update the Conflict of Interest Disclosure Form throughout the year as needed upon entering into any new affiliations and annually when reaffirming the Conflict of Interest Policy. All board members, directors, staff, or employees shall participate in an annual Conflict of Interest training.
Specific Disclosure:
All material facts concerning the existence and nature of the Conflict of Interest involving a grant, business transaction, financial dealings, or paid contracts presented for MIST approval or review, and the relationship of any interested board members, directors, staff, or employees, family member, or household relationship thereof, shall be disclosed to the immediate supervisor. Such facts shall be recorded in the minutes of the meeting that reviewed or considered the approval of the affected grant, business transaction, financial dealings or paid contracts. Covered Persons under this policy have a duty to cooperate with designated directors and staff in the gathering and provision of more specific disclosure information needed to prepare any proposal summary or recommendations presented to the Board for decision.
Continuing Disclosure Responsibility:
It is the continuing responsibility of all board members, directors, staff and employees to review their outside business interests, personal interests, family, and other close relationships for real or perceived Conflicts of Interest with respect to MIST and to promptly update their annual Conflict of Interest Disclosure Form as relationships or affiliations change. In the event an employee, board member, director or staff learns of a Conflict related to a pending business transaction not listed in the Conflict of Interest Disclosure Form, she or he must disclose the nature of the interest and relationship to their immediate supervisor immediately.
Policy and Practices:
Full disclosure, by notice in writing, shall be made by all affected parties to the BOT or the immediate supervisor in all conflicts of interest.
For a covered person, following full disclosure of a possible conflict of interest of any condition, the covered person shall not be present in any meetings regarding the possible conflict matter and shall not have the right to vote on the said matter. However, the covered person may be present to provide clarifying information in such a discussion or debate unless another covered person objects, in writing, to his/her presence in the meeting. If that exists, then the party of conflict may write a letter to provide clarification. If the covered person fails to disclose the possible conflict, then the vote is null and void and there shall be another vote on the issue.
Anyone in a position to make decisions about spending MIST’s resources (i.e., transactions such as purchases contracts) – who also stands to benefit from that decision – has a duty to disclose in writing, that conflict as soon as it arises (or becomes apparent); he/she shall not participate in any final decisions.
When a conflict of interest exists in any financial transaction, the covered person must get at least three other bids for the same service which must then be approved by the ED or BOT before payment and signing the contract
Monitoring:
The Executive Director shall collect all Disclosure Forms from National, Regional, and Associate Directors, and make them available on request to the Board.
Reporting Conflicts of Interest:
If a covered person becomes aware of another’s Conflict of Interest, it should be brought to the attention of the person with the Conflict. Should the covered person feel uncomfortable bringing the Conflict of Interest issue to the individual’s attention, she or he may bring it to the attention of their immediate supervisor.
Intentional failure to disclose Conflicts may result in disciplinary action including termination from employment, termination from position at MIST or Board membership as applicable.
