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Lakenheath High School Graduates’ Scholarship for Excellence Rules and Regulations Purpose The Lakenheath
High School Graduates’ Scholarship for Excellence seeks to financially reward those college-bound high school seniors
enrolled or taking classes at Lakenheath High School who best demonstrate excellence beyond the academic classroom by taking
advantage of life’s opportunities and making a difference in their local and global communities.
This scholarship shall annually provide one graduating LHS senior with $1000 (unless voted otherwise as stipulated
in “Finance” paragraph 2) to assist in Freshman year college tuition and the purchasing of mandatory class textbooks.
The scholarship amount and all funds necessary for the scholarship’s continued functioning shall be collected by donation.
Finance Funds raised
for the Lakenheath High School Graduates’ Scholarship for Excellence shall be deposited in an account set aside specifically
for the scholarship. These funds shall be used solely to reward each year’s winner of said scholarship, or for legal
or financial matters directly related to the continuation of the scholarship, to include upkeep of the scholarship website,
the purchasing of receipt books and plaques and letters of recognition for Donors, and the cost of mailing correspondence
to Donors and between the Scholarship Point of Contact and Application Raters. These aforementioned expenses may be recompensed
from the scholarship fund. At no time can scholarship funds be used as profit or paycheck by Scholarship Application Raters,
members of the Board of Trustees, or the Scholarship Point of Contact.
The award of the Lakenheath High School Graduates’ Scholarship for Excellence shall be no less than $1000 for
each annual winner, unless the scholarship account contains less than said amount, in which case the award shall be rounded
down to the nearest multiple of $250. In the event that more than $1000 is available at the time of awarding of the scholarship,
the Board of Trustees and the Scholarship Point of Contact shall vote on whether to increase the number of awards given out,
or to increase the amount awarded, or to save the excess for following years.
Each year’s scholarship winner shall be chosen from among the top three highest-scoring applications by a vote
of the Board of Trustees and the Scholarship Point of Contact, as specified under the Board of Trustees Outline. If multiple
applications are deemed deserving, a vote of the Board of Trustees and the Scholarship Point of Contact shall be held to decide
the award amounts. In the event
of dissolution of the scholarship, all remaining funds shall be given to the last winner of the scholarship. Donor regulations During the
scholarship’s founding year (school year ’08-’09), donation recognition will be as follows: · Those who donate less than $50 will be deemed
“Donors,” and receive a letter of recognition ·
Those who donate $50 to $250 will be deemed “Co-Founders” and “Sponsors,” be
listed as such on the scholarship website, receive a letter of recognition, and have the option to become a “Scholarship
Application Rater” · Those
who donate $250 or more will be deemed “Co-Founder” and “Trustee,” be listed as such on the scholarship
website, receive a plaque and letter of recognition, have the option to become a scholarship application rater, and have the
option to be a member of the “Board of Trustees” During years following
the scholarship’s founding year, donation recognition will be as follows: ·
Those who donate less than $50 will be deemed “Donors” and receive a letter of recognition · Those who donate $50 to $250 will be deemed
“Sponsors,” be listed as such on the scholarship website, receive a letter of recognition, and have the option
to become a “Scholarship Application Rater” ·
Those who donate more than $250 will be deemed “Trustee,” be listed as such on the scholarship
website, receive a plaque and letter of recognition, have the option to become a scholarship application rater, and have the
option to be a member of the “Board of Trustees” Scholarship Application Rater Outline
Scholarship Application Raters shall: ·
Be either Sponsors or Trustees (see “Donor Regulations”) ·
Have applied for, and been accepted by the “Scholarship Point of Contact” and the “Board
of Trustees” as, “Scholarship Application Raters” Scholarship Application
Raters shall be in charge of scoring LHS Graduates’ Scholarship for Excellence applications. Scholarships
will be sent to the “Scholarship Point of Contact,” who shall send copies of each application to three Raters.
Each Rater will score each of the six sections (hobby list, goal list, “cool” essay, “Make a Difference”
essay, two letters of recommendation) of each application on a scale of zero (0) to ten (10), with zero representing a blank
or “Not Applicable” section, one representing poor quality, and ten representing excellence. The Rater’s
scores of each section of a given essay will be combined for a minimum of zero (0) points and a maximum of sixty (60) points. The
Rater’s score of a given application will be combined with the scores given by the other two Raters of the same application
to create a final score of a minimum of zero points and a maximum of one hundred and eighty (180) points. The scholarship
or scholarships with the highest score will then be forwarded on to the Board of Trustees for final approval. Board of Trustees Outline
The Board of Trustees shall be composed
of individuals who: · Are Trustees (see
“Donor Regulations”) · Have
applied for, and been accepted by the “Scholarship Point of Contact” and the “Board of Trustees” as,
“Board of Trustees” members The Board of Trustees shall dictate the selection of new “Scholarship
Application Raters” and members of the “Board of Trustees,” and give final approval on the granting of the
Lakenheath High School Graduates’ Scholarship for Excellence. Votes of approval for new “Scholarship
Application Raters” or members of the “Board of Trustees,” for changes to the Scholarship Rules and Regulations,
for final approval of scholarship applications, and for annual number and amount of scholarship awards, shall be decided by
counts of the vote of the “Scholarship Point of Contact” and the votes of each member of the “Board of Trustees,”
with each individual having one vote of equal value. Votes will be decided by majority. A tie on a vote for new Raters or
“Board of Trustee” members, or final approval of scholarship applications, will be recorded as a vote of rejection.
Ties on any other matter will be decided by the vote of the “Scholarship Point of Contact.” Conflict
of Interest Policy as taken from IRS Form 1023 Appendix A Note:
Items marked Hospital insert - for hospitals that complete Schedule C are intended to be adopted by hospitals. Article I | Purpose |
The purpose of the conflict of interest policy is to protect
this tax-exempt organization's (Organization) interest when it is contemplating entering into a transaction or arrangement
that might benefit the private interest of an officer or director of the Organization or might result in a possible excess
benefit transaction. This policy is intended to supplement but not replace any applicable state and federal laws governing
conflict of interest applicable to nonprofit and charitable organizations.
|
Article II
| Definitions |
1. Interested Person
| Any director, principal officer, or member
of a committee with governing board delegated powers, who has a direct or indirect financial interest, as defined below, is
an interested person.
[Hospital Insert -
for hospitals that complete Schedule C
If a person is an interested person with respect to any entity in the health care system of which the organization
is a part, he or she is an interested person with respect to all entities in the health care system.] |
2. Financial Interest
| A person has a financial interest if the person has, directly or indirectly, through business,
investment, or family: a. An ownership or investment interest in any entity with which the Organization has
a transaction or arrangement, | b. A
compensation arrangement with the Organization or with any entity or individual with which the Organization has a transaction
or arrangement, or | c. A potential
ownership or investment interest in, or compensation arrangement with, any entity or individual with which the Organization
is negotiating a transaction or arrangement. |
Compensation
includes direct and indirect remuneration as well as gifts or favors that are not insubstantial.
A financial interest
is not necessarily a conflict of interest. Under Article III, Section 2, a person who has a financial interest may have a
conflict of interest only if the appropriate governing board or committee decides that a conflict of interest exists.
|
Article III
| Procedures |
1. Duty to Disclose
In connection with any actual or possible conflict of interest, an
interested person must disclose the existence of the financial interest and be given the opportunity to disclose all material
facts to the directors and members of committees with governing board delegated powers considering the proposed transaction
or arrangement.
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2. Determining
Whether a Conflict of Interest Exists
After disclosure of the financial interest and all material facts, and after any discussion with the
interested person, he/she shall leave the governing board or committee meeting while the determination of a conflict of interest
is discussed and voted upon. The remaining board or committee members shall decide if a conflict of interest exists.
|
3. Procedures for Addressing the Conflict of Interest
a. An interested person may make a presentation at the governing board
or committee meeting, but after the presentation, he/she shall leave the meeting during the discussion of, and the vote on,
the transaction or arrangement involving the possible conflict of interest. | b. The chairperson of the governing board or committee shall, if appropriate, appoint
a disinterested person or committee to investigate alternatives to the proposed transaction or arrangement. | c. After exercising due diligence, the governing board or committee
shall determine whether the Organization can obtain with reasonable efforts a more advantageous transaction or arrangement
from a person or entity that would not give rise to a conflict of interest. | d. If a more advantageous transaction or arrangement is not reasonably possible under
circumstances not producing a conflict of interest, the governing board or committee shall determine by a majority vote of
the disinterested directors whether the transaction or arrangement is in the Organization's best interest, for its own
benefit, and whether it is fair and reasonable. In conformity with the above determination it shall make its decision as to
whether to enter into the transaction or arrangement. |
|
4. Violations of the Conflicts of Interest Policy
a. If the governing board or committee has reasonable cause to believe
a member has failed to disclose actual or possible conflicts of interest, it shall inform the member of the basis for such
belief and afford the member an opportunity to explain the alleged failure to disclose. | b. If, after hearing the member's response and after making further
investigation as warranted by the circumstances, the governing board or committee determines the member has failed to disclose
an actual or possible conflict of interest, it shall take appropriate disciplinary and corrective action. |
|
Article IV
| Records of Proceedings |
The minutes of the governing board and
all committees with board delegated powers shall contain:
a. The names of the persons who disclosed or otherwise were found to
have a financial interest in connection with an actual or possible conflict of interest, the nature of the financial interest,
any action taken to determine whether a conflict of interest was present, and the governing board's or committee's
decision as to whether a conflict of interest in fact existed. | b. The names of the persons who were present for discussions and votes relating to the
transaction or arrangement, the content of the discussion, including any alternatives to the proposed transaction or arrangement,
and a record of any votes taken in connection with the proceedings. |
|
Article V
| Compensation |
a. A voting member of the governing board who receives compensation,
directly or indirectly, from the Organization for services is precluded from voting on matters pertaining to that member's
compensation. | b. A voting
member of any committee whose jurisdiction includes compensation matters and who receives compensation, directly or indirectly,
from the Organization for services is precluded from voting on matters pertaining to that member's compensation. | c. No voting member of the governing board or any committee whose jurisdiction
includes compensation matters and who receives compensation, directly or indirectly, from the Organization, either individually
or collectively, is prohibited from providing information to any committee regarding compensation. | [Hospital Insert - for hospitals that complete Schedule C
d. Physicians who receive
compensation from the Organization, whether directly or indirectly or as employees or independent contractors, are precluded
from membership on any committee whose jurisdiction includes compensation matters. No physician, either individually or collectively,
is prohibited from providing information to any committee regarding physician compensation.] |
| Article VI | Annual Statements |
Each director, principal officer and member of a committee with governing board delegated
powers shall annually sign a statement which affirms such person:
a. Has received a copy of the conflicts of interest policy, | b. Has read and understands the policy, | c. Has agreed to comply with the policy, and | d. Understands the Organization is charitable and in order to maintain
its federal tax exemption it must engage primarily in activities which accomplish one or more of its tax-exempt purposes.
|
| Article VII | Periodic Reviews |
To ensure the Organization operates in a manner consistent
with charitable purposes and does not engage in activities that could jeopardize its tax-exempt status, periodic reviews shall
be conducted. The periodic reviews shall, at a minimum, include the following subjects:
a. Whether
compensation arrangements and benefits are reasonable, based on competent survey information, and the result of arm's
length bargaining. | b. Whether
partnerships, joint ventures, and arrangements with management organizations conform to the Organization's written policies,
are properly recorded, reflect reasonable investment or payments for goods and services, further charitable purposes and do
not result in inurement, impermissible private benefit or in an excess benefit transaction. |
| Article VIII | Use of Outside Experts |
When conducting the periodic reviews
as provided for in Article VII, the Organization may, but need not, use outside advisors. If outside experts are used, their
use shall not relieve the governing board of its responsibility for ensuring periodic reviews are conducted.
|
Conflict of
Interest Policy as taken from IRS Form 1023 Appendix A Note:
Items marked Hospital insert - for hospitals that complete Schedule C are intended to be adopted by hospitals. Article I | Purpose |
The purpose of the conflict of interest policy is to protect
this tax-exempt organization's (Organization) interest when it is contemplating entering into a transaction or arrangement
that might benefit the private interest of an officer or director of the Organization or might result in a possible excess
benefit transaction. This policy is intended to supplement but not replace any applicable state and federal laws governing
conflict of interest applicable to nonprofit and charitable organizations.
|
Article II
| Definitions |
1. Interested Person
| Any director, principal officer, or member
of a committee with governing board delegated powers, who has a direct or indirect financial interest, as defined below, is
an interested person.
[Hospital Insert -
for hospitals that complete Schedule C
If a person is an interested person with respect to any entity in the health care system of which the organization
is a part, he or she is an interested person with respect to all entities in the health care system.] |
2. Financial Interest
| A person has a financial interest if the person has, directly or indirectly, through business,
investment, or family: a. An ownership or investment interest in any entity with which the Organization has
a transaction or arrangement, | b. A
compensation arrangement with the Organization or with any entity or individual with which the Organization has a transaction
or arrangement, or | c. A potential
ownership or investment interest in, or compensation arrangement with, any entity or individual with which the Organization
is negotiating a transaction or arrangement. |
Compensation
includes direct and indirect remuneration as well as gifts or favors that are not insubstantial.
A financial interest
is not necessarily a conflict of interest. Under Article III, Section 2, a person who has a financial interest may have a
conflict of interest only if the appropriate governing board or committee decides that a conflict of interest exists.
|
Article III
| Procedures |
1. Duty to Disclose
In connection with any actual or possible conflict of interest, an
interested person must disclose the existence of the financial interest and be given the opportunity to disclose all material
facts to the directors and members of committees with governing board delegated powers considering the proposed transaction
or arrangement.
|
2. Determining
Whether a Conflict of Interest Exists
After disclosure of the financial interest and all material facts, and after any discussion with the
interested person, he/she shall leave the governing board or committee meeting while the determination of a conflict of interest
is discussed and voted upon. The remaining board or committee members shall decide if a conflict of interest exists.
|
3. Procedures for Addressing the Conflict of Interest
a. An interested person may make a presentation at the governing board
or committee meeting, but after the presentation, he/she shall leave the meeting during the discussion of, and the vote on,
the transaction or arrangement involving the possible conflict of interest. | b. The chairperson of the governing board or committee shall, if appropriate, appoint
a disinterested person or committee to investigate alternatives to the proposed transaction or arrangement. | c. After exercising due diligence, the governing board or committee
shall determine whether the Organization can obtain with reasonable efforts a more advantageous transaction or arrangement
from a person or entity that would not give rise to a conflict of interest. | d. If a more advantageous transaction or arrangement is not reasonably possible under
circumstances not producing a conflict of interest, the governing board or committee shall determine by a majority vote of
the disinterested directors whether the transaction or arrangement is in the Organization's best interest, for its own
benefit, and whether it is fair and reasonable. In conformity with the above determination it shall make its decision as to
whether to enter into the transaction or arrangement. |
|
4. Violations of the Conflicts of Interest Policy
a. If the governing board or committee has reasonable cause to believe
a member has failed to disclose actual or possible conflicts of interest, it shall inform the member of the basis for such
belief and afford the member an opportunity to explain the alleged failure to disclose. | b. If, after hearing the member's response and after making further
investigation as warranted by the circumstances, the governing board or committee determines the member has failed to disclose
an actual or possible conflict of interest, it shall take appropriate disciplinary and corrective action. |
|
Article IV
| Records of Proceedings |
The minutes of the governing board and
all committees with board delegated powers shall contain:
a. The names of the persons who disclosed or otherwise were found to
have a financial interest in connection with an actual or possible conflict of interest, the nature of the financial interest,
any action taken to determine whether a conflict of interest was present, and the governing board's or committee's
decision as to whether a conflict of interest in fact existed. | b. The names of the persons who were present for discussions and votes relating to the
transaction or arrangement, the content of the discussion, including any alternatives to the proposed transaction or arrangement,
and a record of any votes taken in connection with the proceedings. |
|
Article V
| Compensation |
a. A voting member of the governing board who receives compensation,
directly or indirectly, from the Organization for services is precluded from voting on matters pertaining to that member's
compensation. | b. A voting
member of any committee whose jurisdiction includes compensation matters and who receives compensation, directly or indirectly,
from the Organization for services is precluded from voting on matters pertaining to that member's compensation. | c. No voting member of the governing board or any committee whose jurisdiction
includes compensation matters and who receives compensation, directly or indirectly, from the Organization, either individually
or collectively, is prohibited from providing information to any committee regarding compensation. | [Hospital Insert - for hospitals that complete Schedule C
d. Physicians who receive
compensation from the Organization, whether directly or indirectly or as employees or independent contractors, are precluded
from membership on any committee whose jurisdiction includes compensation matters. No physician, either individually or collectively,
is prohibited from providing information to any committee regarding physician compensation.] |
| Article VI | Annual Statements |
Each director, principal officer and member of a committee with governing board delegated
powers shall annually sign a statement which affirms such person:
a. Has received a copy of the conflicts of interest policy, | b. Has read and understands the policy, | c. Has agreed to comply with the policy, and | d. Understands the Organization is charitable and in order to maintain
its federal tax exemption it must engage primarily in activities which accomplish one or more of its tax-exempt purposes.
|
| Article VII | Periodic Reviews |
To ensure the Organization operates in a manner consistent
with charitable purposes and does not engage in activities that could jeopardize its tax-exempt status, periodic reviews shall
be conducted. The periodic reviews shall, at a minimum, include the following subjects:
a. Whether
compensation arrangements and benefits are reasonable, based on competent survey information, and the result of arm's
length bargaining. | b. Whether
partnerships, joint ventures, and arrangements with management organizations conform to the Organization's written policies,
are properly recorded, reflect reasonable investment or payments for goods and services, further charitable purposes and do
not result in inurement, impermissible private benefit or in an excess benefit transaction. |
| Article VIII | Use of Outside Experts |
When conducting the periodic reviews
as provided for in Article VII, the Organization may, but need not, use outside advisors. If outside experts are used, their
use shall not relieve the governing board of its responsibility for ensuring periodic reviews are conducted.
|
Conflict of Interest Policy as taken
from IRS Form 1023 Appendix A Note:
Items marked Hospital insert - for hospitals that complete Schedule C are intended to be adopted by hospitals. Article I | Purpose |
The purpose of the conflict of interest policy is to protect
this tax-exempt organization's (Organization) interest when it is contemplating entering into a transaction or arrangement
that might benefit the private interest of an officer or director of the Organization or might result in a possible excess
benefit transaction. This policy is intended to supplement but not replace any applicable state and federal laws governing
conflict of interest applicable to nonprofit and charitable organizations.
|
Article II
| Definitions |
1. Interested Person
| Any director, principal officer, or member
of a committee with governing board delegated powers, who has a direct or indirect financial interest, as defined below, is
an interested person.
[Hospital Insert -
for hospitals that complete Schedule C
If a person is an interested person with respect to any entity in the health care system of which the organization
is a part, he or she is an interested person with respect to all entities in the health care system.] |
2. Financial Interest
| A person has a financial interest if the person has, directly or indirectly, through business,
investment, or family: a. An ownership or investment interest in any entity with which the Organization has
a transaction or arrangement, | b. A
compensation arrangement with the Organization or with any entity or individual with which the Organization has a transaction
or arrangement, or | c. A potential
ownership or investment interest in, or compensation arrangement with, any entity or individual with which the Organization
is negotiating a transaction or arrangement. |
Compensation
includes direct and indirect remuneration as well as gifts or favors that are not insubstantial.
A financial interest
is not necessarily a conflict of interest. Under Article III, Section 2, a person who has a financial interest may have a
conflict of interest only if the appropriate governing board or committee decides that a conflict of interest exists.
|
Article III
| Procedures |
1. Duty to Disclose
In connection with any actual or possible conflict of interest, an
interested person must disclose the existence of the financial interest and be given the opportunity to disclose all material
facts to the directors and members of committees with governing board delegated powers considering the proposed transaction
or arrangement.
|
2. Determining
Whether a Conflict of Interest Exists
After disclosure of the financial interest and all material facts, and after any discussion with the
interested person, he/she shall leave the governing board or committee meeting while the determination of a conflict of interest
is discussed and voted upon. The remaining board or committee members shall decide if a conflict of interest exists.
|
3. Procedures for Addressing the Conflict of Interest
a. An interested person may make a presentation at the governing board
or committee meeting, but after the presentation, he/she shall leave the meeting during the discussion of, and the vote on,
the transaction or arrangement involving the possible conflict of interest. | b. The chairperson of the governing board or committee shall, if appropriate, appoint
a disinterested person or committee to investigate alternatives to the proposed transaction or arrangement. | c. After exercising due diligence, the governing board or committee
shall determine whether the Organization can obtain with reasonable efforts a more advantageous transaction or arrangement
from a person or entity that would not give rise to a conflict of interest. | d. If a more advantageous transaction or arrangement is not reasonably possible under
circumstances not producing a conflict of interest, the governing board or committee shall determine by a majority vote of
the disinterested directors whether the transaction or arrangement is in the Organization's best interest, for its own
benefit, and whether it is fair and reasonable. In conformity with the above determination it shall make its decision as to
whether to enter into the transaction or arrangement. |
|
4. Violations of the Conflicts of Interest Policy
a. If the governing board or committee has reasonable cause to believe
a member has failed to disclose actual or possible conflicts of interest, it shall inform the member of the basis for such
belief and afford the member an opportunity to explain the alleged failure to disclose. | b. If, after hearing the member's response and after making further
investigation as warranted by the circumstances, the governing board or committee determines the member has failed to disclose
an actual or possible conflict of interest, it shall take appropriate disciplinary and corrective action. |
|
Article IV
| Records of Proceedings |
The minutes of the governing board and
all committees with board delegated powers shall contain:
a. The names of the persons who disclosed or otherwise were found to
have a financial interest in connection with an actual or possible conflict of interest, the nature of the financial interest,
any action taken to determine whether a conflict of interest was present, and the governing board's or committee's
decision as to whether a conflict of interest in fact existed. | b. The names of the persons who were present for discussions and votes relating to the
transaction or arrangement, the content of the discussion, including any alternatives to the proposed transaction or arrangement,
and a record of any votes taken in connection with the proceedings. |
|
Article V
| Compensation |
a. A voting member of the governing board who receives compensation,
directly or indirectly, from the Organization for services is precluded from voting on matters pertaining to that member's
compensation. | b. A voting
member of any committee whose jurisdiction includes compensation matters and who receives compensation, directly or indirectly,
from the Organization for services is precluded from voting on matters pertaining to that member's compensation. | c. No voting member of the governing board or any committee whose jurisdiction
includes compensation matters and who receives compensation, directly or indirectly, from the Organization, either individually
or collectively, is prohibited from providing information to any committee regarding compensation. | [Hospital Insert - for hospitals that complete Schedule C
d. Physicians who receive
compensation from the Organization, whether directly or indirectly or as employees or independent contractors, are precluded
from membership on any committee whose jurisdiction includes compensation matters. No physician, either individually or collectively,
is prohibited from providing information to any committee regarding physician compensation.] |
| Article VI | Annual Statements |
Each director, principal officer and member of a committee with governing board delegated
powers shall annually sign a statement which affirms such person:
a. Has received a copy of the conflicts of interest policy, | b. Has read and understands the policy, | c. Has agreed to comply with the policy, and | d. Understands the Organization is charitable and in order to maintain
its federal tax exemption it must engage primarily in activities which accomplish one or more of its tax-exempt purposes.
|
| Article VII | Periodic Reviews |
To ensure the Organization operates in a manner consistent
with charitable purposes and does not engage in activities that could jeopardize its tax-exempt status, periodic reviews shall
be conducted. The periodic reviews shall, at a minimum, include the following subjects:
a. Whether
compensation arrangements and benefits are reasonable, based on competent survey information, and the result of arm's
length bargaining. | b. Whether
partnerships, joint ventures, and arrangements with management organizations conform to the Organization's written policies,
are properly recorded, reflect reasonable investment or payments for goods and services, further charitable purposes and do
not result in inurement, impermissible private benefit or in an excess benefit transaction. |
| Article VIII | Use of Outside Experts |
When conducting the periodic reviews
as provided for in Article VII, the Organization may, but need not, use outside advisors. If outside experts are used, their
use shall not relieve the governing board of its responsibility for ensuring periodic reviews are conducted.
|
Conflict of Interest Policy as taken
from IRS Form 1023 Appendix A Note:
Items marked Hospital insert - for hospitals that complete Schedule C are intended to be adopted by hospitals. Article I | Purpose |
The purpose of the conflict of interest policy is to protect
this tax-exempt organization's (Organization) interest when it is contemplating entering into a transaction or arrangement
that might benefit the private interest of an officer or director of the Organization or might result in a possible excess
benefit transaction. This policy is intended to supplement but not replace any applicable state and federal laws governing
conflict of interest applicable to nonprofit and charitable organizations.
|
Article II
| Definitions |
1. Interested Person
| Any director, principal officer, or member
of a committee with governing board delegated powers, who has a direct or indirect financial interest, as defined below, is
an interested person.
[Hospital Insert -
for hospitals that complete Schedule C
If a person is an interested person with respect to any entity in the health care system of which the organization
is a part, he or she is an interested person with respect to all entities in the health care system.] |
2. Financial Interest
| A person has a financial interest if the person has, directly or indirectly, through business,
investment, or family: a. An ownership or investment interest in any entity with which the Organization has
a transaction or arrangement, | b. A
compensation arrangement with the Organization or with any entity or individual with which the Organization has a transaction
or arrangement, or | c. A potential
ownership or investment interest in, or compensation arrangement with, any entity or individual with which the Organization
is negotiating a transaction or arrangement. |
Compensation
includes direct and indirect remuneration as well as gifts or favors that are not insubstantial.
A financial interest
is not necessarily a conflict of interest. Under Article III, Section 2, a person who has a financial interest may have a
conflict of interest only if the appropriate governing board or committee decides that a conflict of interest exists.
|
Article III
| Procedures |
1. Duty to Disclose
In connection with any actual or possible conflict of interest, an
interested person must disclose the existence of the financial interest and be given the opportunity to disclose all material
facts to the directors and members of committees with governing board delegated powers considering the proposed transaction
or arrangement.
|
2. Determining
Whether a Conflict of Interest Exists
After disclosure of the financial interest and all material facts, and after any discussion with the
interested person, he/she shall leave the governing board or committee meeting while the determination of a conflict of interest
is discussed and voted upon. The remaining board or committee members shall decide if a conflict of interest exists.
|
3. Procedures for Addressing the Conflict of Interest
a. An interested person may make a presentation at the governing board
or committee meeting, but after the presentation, he/she shall leave the meeting during the discussion of, and the vote on,
the transaction or arrangement involving the possible conflict of interest. | b. The chairperson of the governing board or committee shall, if appropriate, appoint
a disinterested person or committee to investigate alternatives to the proposed transaction or arrangement. | c. After exercising due diligence, the governing board or committee
shall determine whether the Organization can obtain with reasonable efforts a more advantageous transaction or arrangement
from a person or entity that would not give rise to a conflict of interest. | d. If a more advantageous transaction or arrangement is not reasonably possible under
circumstances not producing a conflict of interest, the governing board or committee shall determine by a majority vote of
the disinterested directors whether the transaction or arrangement is in the Organization's best interest, for its own
benefit, and whether it is fair and reasonable. In conformity with the above determination it shall make its decision as to
whether to enter into the transaction or arrangement. |
|
4. Violations of the Conflicts of Interest Policy
a. If the governing board or committee has reasonable cause to believe
a member has failed to disclose actual or possible conflicts of interest, it shall inform the member of the basis for such
belief and afford the member an opportunity to explain the alleged failure to disclose. | b. If, after hearing the member's response and after making further
investigation as warranted by the circumstances, the governing board or committee determines the member has failed to disclose
an actual or possible conflict of interest, it shall take appropriate disciplinary and corrective action. |
|
Article IV
| Records of Proceedings |
The minutes of the governing board and
all committees with board delegated powers shall contain:
a. The names of the persons who disclosed or otherwise were found to
have a financial interest in connection with an actual or possible conflict of interest, the nature of the financial interest,
any action taken to determine whether a conflict of interest was present, and the governing board's or committee's
decision as to whether a conflict of interest in fact existed. | b. The names of the persons who were present for discussions and votes relating to the
transaction or arrangement, the content of the discussion, including any alternatives to the proposed transaction or arrangement,
and a record of any votes taken in connection with the proceedings. |
|
Article V
| Compensation |
a. A voting member of the governing board who receives compensation,
directly or indirectly, from the Organization for services is precluded from voting on matters pertaining to that member's
compensation. | b. A voting
member of any committee whose jurisdiction includes compensation matters and who receives compensation, directly or indirectly,
from the Organization for services is precluded from voting on matters pertaining to that member's compensation. | c. No voting member of the governing board or any committee whose jurisdiction
includes compensation matters and who receives compensation, directly or indirectly, from the Organization, either individually
or collectively, is prohibited from providing information to any committee regarding compensation. | [Hospital Insert - for hospitals that complete Schedule C
d. Physicians who receive
compensation from the Organization, whether directly or indirectly or as employees or independent contractors, are precluded
from membership on any committee whose jurisdiction includes compensation matters. No physician, either individually or collectively,
is prohibited from providing information to any committee regarding physician compensation.] |
| Article VI | Annual Statements |
Each director, principal officer and member of a committee with governing board delegated
powers shall annually sign a statement which affirms such person:
a. Has received a copy of the conflicts of interest policy, | b. Has read and understands the policy, | c. Has agreed to comply with the policy, and | d. Understands the Organization is charitable and in order to maintain
its federal tax exemption it must engage primarily in activities which accomplish one or more of its tax-exempt purposes.
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| Article VII | Periodic Reviews |
To ensure the Organization operates in a manner consistent
with charitable purposes and does not engage in activities that could jeopardize its tax-exempt status, periodic reviews shall
be conducted. The periodic reviews shall, at a minimum, include the following subjects:
a. Whether
compensation arrangements and benefits are reasonable, based on competent survey information, and the result of arm's
length bargaining. | b. Whether
partnerships, joint ventures, and arrangements with management organizations conform to the Organization's written policies,
are properly recorded, reflect reasonable investment or payments for goods and services, further charitable purposes and do
not result in inurement, impermissible private benefit or in an excess benefit transaction. |
| Article VIII | Use of Outside Experts |
When conducting the periodic reviews
as provided for in Article VII, the Organization may, but need not, use outside advisors. If outside experts are used, their
use shall not relieve the governing board of its responsibility for ensuring periodic reviews are conducted.
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