The purpose of the Conflict of Interest and lnurement Prohibition is to ensure that members of the Governing Board and its volunteer committees, commissions, advisory bodies (including those relating to accreditation), NAEYC corporate officers and certain Key Employees (as defined by the IRS) act in NAEYC's best interest and comply with applicable legal requirements. This policy is also intended to protect the interests of NAEYC when it is contemplating entering into a transaction or arrangement that might benefit the private interest of certain Related Parties of NAEYC (private inurement) or that might result in a possible "excess benefit transaction" as defined under section 4958 of the Internal Revenue Code of 1986, as amended.
In keeping with the NAEYC Board Code of Ethics, members of the Governing Board and NAEYC volunteers serving in the NAEYC Governance capacity will exercise the utmost good faith in all transactions relating to their duties at NAEYC. In their work with and on behalf of NAEYC, they will be held to a strict rule of honest and fair dealing. They will not use their positions, or knowledge gained, in such a way that a material conflict, real or apparent, would arise between the interest of NAEYC and that of the individual.
This policy is intended to supplement, but not replace, the NAEYC Board Code of Ethics and other related Governing Board policies and procedures, as well as applicable state and federal laws governing conflict of interest applicable to nonprofit and charitable organizations. This is designed to be compliant with the standards for conflict of interest policies as referenced in IRS Forms 1023 and 990 and consistent with the requirements of the Illinois Nonprofit Corporation Act (the "Act").
NAEYC staff are expected to comply with the NAEYC Conflict of Interest and lnurement Prohibition policy and procedure set forth in the NAEYC Employee Handbook, provided,however, that conflicts involving NAEYC staff who are Key Employees or Corporate Officers must be reviewed in accordance with the Governing Board Conflict of Interest and lnurement Prohibition Procedure rather than the NAEYC staff Conflict of Interest and lnurement Prohibition Procedure.
EFFECTIVE DATE: July 2015
PURPOSE: To ensure that NAEYC will live up to its high fiduciary obligations and operate in compliance with its Code of Ethics and transparency
ORIGIN: Approved by the Board of Directors July 2015. Replaces "Conflict of Interest' "Inurement Prohibition, Confidentiality and Conflict Of Interest' adopted March 2003, amended June 2013, June 2011.
FINAL BOARD POLICIES: Expectations of Board Members, 7/28/15, page 64