A homeschool leader is concerned about a conflict of interest if she wants to be a board member and paid teacher.
Jessica, who wants to start a homeschool co-op emailed HomeschoolCPA Carol Topp this situation:
“I have a question about the conflict of interest issue. Three ladies and I would like to incorporate to teach classes together and form a co-op. If we are the three board members, then does that mean we cannot profit by also teaching? Do you have any article that clarifies that?”
Listen as Carol explains:
- The conflict of interest between being on the board and being paid by a nonprofit
- Inurement and self-dealing
- Why it is not a good practice for nonprofit to have paid staff also serve as board members.
- Three options Jessica has:
- Form a 3-way partnership (a for-profit business)
- Have a separate, independent board that hires teachers as staff
- Grow the board so the majority is not paid teachers
In the podcast I mentioned my webinar Create a Nonprofit for Your Homeschool Community
What are the advantages and disadvantages of being a nonprofit?
Forming a board: who can be one it and what do they do?
How hard is it?
What are the steps to take?
How fast can it get it done?
How much will it cost?
I have recorded a webinar to answer all these questions and more!