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~~~~~~~ ~o~~~ ~~~o~~~~~o~ <br />1.09 HiUcrest Ave. Carrboro, NC 27510 <br />Conflict of Interest Policy <br />August, 2005 <br />PURPOSE: <br />The purpose of the conflict of interest policy is to protect Charles House Association's <br />(Organization) .interest when it is contemplating entering into a transactions or <br />arrangement that might benefit the private interest of an officer or director of the <br />organization or might result in a possible excess benefit transaction. This policy is <br />intended to supplement but not replace applicable state and federal laws governing <br />conflict of interest application to nonprofit and charitable organizations. <br />DEFINITIONS: <br />1. Interested Person <br />Any director, principal officer, or member of a committee with governing board <br />delegated powers, who has a direct or indirect financial or personal interest, as defined <br />below,. is an interested person. <br />2. Financiallnterest <br />A person has a financial in#erest if the person has, directly or indirectly, through <br />business, investment, or family: <br />a. An ownership or investment interest in any entity with which the Organization has a <br />transaction or arrangement, <br />b. A compensa#ion arrangement with the Organization or with any entity or individual <br />with which the Organization has a transaction or arrangement, or <br />c. A potential ownership or investment interest in, or compensation arrangement with, <br />any entity or individual with which the Organization is negotiating a transaction or <br />arrangemen#. <br />Compensation includes direct and indirect remuneration as well as gifts or favors that <br />are not insubstantial-. <br />A financial interest is not necessarily a conflict of interest. Under Procedures, a person <br />who has a financial interest may have a conflict of interest only if the governing <br />board decides that a conflict of interest exists. <br />3. PersonalInterest <br />A conflict of interest is present whenever a director has a substantiaF persona! imerest in <br />a proposed arrangement, contract or transaction to which the Organization may be a <br />party. This interest can occur either directly or indirectly. <br />PROCEDURES: <br />1. Duty to Diisclose <br />In connection with any actual. or possible conflict of interest, an interested person must <br />disclose the exis#ence of the financial in#erest and be given the opportunity to disclose <br />all material facts to the directors and members of committees with governing board <br />delegated powers considering. the proposed transaction or arrangement. <br />