Staying on the Ethical Straight and Narrow

Schmidt says conflicts of interest having to do with board members are very common in the nonprofit world, e.g., board members doing business with the organization where they stand to make a financial gain. She stresses that the entire board should always be aware that a board member (or an organization affiliated with a board member) is doing work for the nonprofit, and the person who might be doing the work for the organization should never vote on whether he or she will be the one doing the work. The price agreed upon should be extremely fair for the organization; in most cases, the board member should provide the service on a pro bono basis or at a reduced rate.