Originally Posted by
ebaines
This smells. It is imperative that the full board be aware of the conflict of interest here. And it is illegal for a board member - especially an officer - to steer business from the non-profit to his own outside company.
It's unclear to me what your role is here - please elaborate. Are you reviewing this grant request on behalf of another non-profit (a foundation perhaps) that is being solicited for funds? If so, you could require that the non-profit soliciting these funds provide minutes of a board meeting where the board voted to support the grant request and acknowledges the apparent conflict of interest of having one of its own board members being paid to provide a service. Finally, the board should affirm that any dealings with outside for-profit companies by the non-profit or its subsidiary be done at arms-length (i.e. with a proper bid process).