Misuse of relationship
Asked Dec 5, 2016, 06:52 PM
Just would like confirmation of what I think.
I have reviewed some documents regarding a proposal brought by the President of a non profit(honorary position) to use the organisation he heads to obtain a grant to set up a new organisation of which he would become the CEO (paid position). This new organisation would then contract marketing services for the non-profit and receive services from a third organisation of which he is currently a paid executive (2IC) seliing these services to the non profit.
As far as I'm aware this person has not formally declared his vested interest to the non profit board although they would be generally aware of it.
Board members has been expected to endorse the course of action without reviewing the proposal in detail under the threat that there is a time limit on acceptance
I see that this as a misuse of his relationship by seeking material gain while an officer of the non profit, this is precluded in the rules. It is also unclear specifically what would be done with the grant money which is about $500,000 as the non profit becomes the vehicle for receiving and disbursing it and the function of the new organisation is not its core business