Dallas Area Rape Crisis Center

“There were no committees with authority to act on behalf of the governing body.”

“The form was sent to each board member as soon as it was received from the preparer. Any questions were referred to the executive director to be discussed with the preparer, who then reported back to the board. The entire board discussed the final form at a recent meeting and voted to approve it.”

“The following is an excerpt from the Organization's bylaws:Section 1. Purpose of Conflict of Interest PolicyThe purpose of this conflict of interest policy is to protect DARCCs tax-exempt-interest when it is contemplating entering into a transaction or arrangement that might benefit the private interest of an officer or director, or employee of the corporation or any disqualified person as defined in Section 53.4958-3 of the IRS Regulations and which might result in a possible excess benefit transaction as defined in Section 4958(1)(A) of the Internal Revenue Code and as amplified by Section 53.4958 of the IRS Regulations. This ipolicy is intended to supplement but not replace any applicable state and federal laws governing conflict of interest applicable to nonprofit and charitable organizations.Section 2. DefinitionsA. Interested Person. Any Director, member of a committee with governing board delegated powers, or any other person who is a disqualified person as defined in Section 4958(f)(1) of the Internal Revenue Code and as amplified by Section 53.4958-3 of the IRS Regulations, who has a direct or indirect financial interest, as defined below, is an interested person.B.Financial Interest. A person has a financial interest if the person has, directly or indirectly, through business, investment, or family:1. An ownership or investment interest in any entity with which DARCC has a transaction or arrangement;2.A compensation arrangement with DARCC or with any entity or individual with which DARCC has a transaction or arrangement; or3.A potential ownership or investment interest in or compensation arrangement with, any entity or individual with which DARCC 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 Section 3, paragraph B, 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.Section 3. Conflict of Interest Avoidance ProceduresA. 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 agreement.B.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.C.Procedures for Addressing the Conflict of Interest:1. 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.2.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.3.After exercising due diligence, the governing board or committee shall determine whether DARCC 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.4.If a more advantageous transaction or arrangement is not reasonable 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 DARCCs best interest, for its own benefit, and whe”

“Upon request.”

“Executive director - In 2012, the board considered data from the 2011 DFW Nonprofit Benefits Survey, the salary of the previous executive director, and available grant funds and approved her salary at a board meeting. In 2013, the rate was approved by the board of directors as documented in the minutes. However, the minutes did not document the details of these discussions.”

“When this return was prepared, the financial statement audit was still in process. An amended return is expected to be filed if any information reported on this return is later determined to be significantly incorrect.”