2025 Generation Hope Conflicts of Interest Policy and Procedure
I. Purpose
Generation Hope board members, officers, and key employees (“Interested Parties”) have a duty of loyalty and a standard of care to act in good faith in the best interests of the organization. Interested Parties must avoid transactions that would benefit themselves or their families over Generation Hope. This policy ensures transparency and ethical behavior by guiding Interested Parties on identifying, disclosing, and addressing conflicts of interest.
II. Defining a Conflict of Interest
A conflict of interest arises when Generation Hope considers entering into a contract or transaction with:
An Interested Party or their family member.
An organization where the Interested Party or their family member holds a position of authority or has a material financial interest.
Conflicts may also include situations where an Interested Party engages in or benefits from a business opportunity suited for Generation Hope unless the organization declines the opportunity.
III. Disclosing Potential Conflicts of Interest
Annually, Interested Parties must disclose any potential conflicts using the Generation Hope Conflicts of Interest Disclosure Statement (see Attachment). Additionally, new conflicts must be disclosed immediately to the board or relevant leadership.
IV. Procedure for Handling Conflicts of Interest
When Generation Hope considers a transaction involving a potential conflict of interest:
Notification: The Interested Party must notify the board, Chief Executive Officer, Compliance Officer, and Finance Director.
Due Diligence: The organization will review and verify that the transaction is fair, reasonable, and in the best interest of Generation Hope.
Approval: Two-thirds of the board, excluding the Interested Party, must approve the transaction in good faith.
V. References
a. Minnesota Nonprofit Corporation Act
b. Attorney General’s Guidance for Nonprofit Board Members
c. Federal IRS Guidance for Charities and Nonprofits
d. Generation Hope Bylaws