Is buying T-shirts from a board member a conflict of interest?

Hi, we are wanting t-shirts for our homeschool group. One of our board members can make the t-shirts.

Is it a conflict of interest if she makes them? There would be a little profit made from what is charged to the members.

Would she be able to keep that profit or would it need to go back into the co-op so that there would be no benefit to her?

Thank you. Mary

Mary,

You asked if buying T-shirts from a board member is a conflict of interest. Yes it is a conflict of interests between her T-shirt business and her duty of loyalty to the homeschool group.But that does not mean she is forbidden to offer her t-shirt service to your group!

There is a practical, easy way to handle conflicts of interest.

When you discuss the T-shirts, the board member who could benefit from the sale should explain that she has a conflict of interest, leave the room, and not have a vote in the decision.

Your board should do its due diligence and get bids form at least two other T-shirt sellers and compare it to the board member’s offer. Then make a decision.

So, just because a board member has a conflict of interest, does not mean that you cannot buy T shirts from her, if she has the lowest bid.

And she gets to keep the profits because it’s her business doing the work.

If you have more questions about conflicts of interest you might find these books helpful: