Recovery Inn

“The organization leases residential property for its program from the mother of the executive director.”

“The executive director presents the return to the full board for review and approval. Revisions are then reviewed by the executive director before signing.”

“Procedures 1. Duty to disclose: in connection with any actual or possible conflict of interest, an interested person must disclose the existence of any 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 the conflict of interest is discussed and voted upon. The remaining board or committee shall decide if a conflict of interest exists. 3. Procedures for addressing conflict of interest: a. An interested person may make a presentation at the governinhg board or committee meeting, but after the presentation, he/she shall leave the meeting during the discussion of, and vote on, the transaction or arrangement involving the possible conflict of interest. B. The chairperson of the governing board or committtee 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 corporation 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 corporation's best interest, for its own benefit, and whether it is fair and reasonable. 4. Violations of the conflict of interest policy: a. If the governing board or committee has reasonable cause to believe an interested person has failed to disclose actual or possible conflicts of interest, it shall inform the interested person of the basis for such belief and afford the interested person an opportunity to explain the alleged failure to disclose. B. If, after hearing the interested person's response and after making further investigation as warranted by the circumstances, the governing board or committee determines that the interested person failed to disclose an actual or possible conflict of interest, it shall take appropriate disciplinary and corrective action. Compensation 1. A voting member of the governing board who receives compensation, directly or indirectly, from the corporation for services is precluded from voting on matters pertaining to that member's compensation. 2. A voting member of any committee whose jurisdiction includes compensation matters and who receives compensation, directly or indirectly, from the corporation, either individually or collectively, is prohibited from providing information to any committee regarding compensation. Affirmation statements 1. Each director, prinicipal officer, and member of a committee with governing board delegated powers shall sign a statement which affirms such person: a. Has received a copy of the conflict of interest policy, b. Has read and understands the policy, c. Has agreed to comply with the policy, d. Understands the corporation is charitable and in order to maintain its federal tax exemption it must engage primarily in activities which accomplish one or more of its exempt purposes. Periodic reviews 1. To ensure the corporation 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 informat”

“The executive director's compensation is determined by a compensation committee and then reviewed and approved by the board of directors. Before approving a new salary or a compensation increase, the board reviews published surveys of actual salaries for comparable positions at other nonprofit organizations of a similar size,as well as self-evaluations and annual performance reviews of the executive director. The board president communicates the decision of the board to the executive director and keeps a record of the decision.”

“The organization will disclose such information upon request.”