Can a member of the board (of our homeschool group) be given free tuition as a perk? Or could this be a conflict of interest?
Ashley
Ashley,
It is a conflict of interest if the board votes itself tuition discounts. A nonprofit board member has a duty of loyalty to the organization above themselves. So if a board votes themselves a tuition discount, their loyalty comes into conflict with their personal benefit.
If only one member receives a discount, the rest of the board could vote to give that person a discount in appreciation for her volunteer efforts. That member benefiting should not be in the room during the discussion on discounts and they should not be allowed a vote.
If the entire board wants a discount for each member, then perhaps the bylaws should state that. If the bylaws are amended, I’d recommend a vote be put to the membership at large approving the discounts as a “perk” of serving on the board.
I’d also recommend a conflict of interest policy. See samples here:https://homeschoolcpa.com/leader-tools/sample-documents/
Carol Topp, CPA