Conflict of Interest Policy

Polson Police Foundation · Adopted by the Board on: [Insert Date]

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Article I – Purpose

The purpose of this Conflict of Interest Policy is to protect the integrity of the Polson Police Foundation’s decision-making process, ensure public trust, and protect the organization’s 501(c)(3) status.

Article II – Definitions

Interested Person: Any director, officer, or committee member with powers delegated by the Board who has a direct or indirect financial interest.

Financial Interest: A person has a financial interest if they have, directly or indirectly, through business, investment, or family:

• An ownership or investment interest in any entity with which the Foundation has a transaction or arrangement.
• A compensation arrangement with the Foundation or with any entity with which the Foundation has a transaction or arrangement.
• A potential ownership, investment, or compensation arrangement with any entity or individual with which the Foundation is negotiating a transaction or arrangement.

Article III – Duty to Disclose

In connection with any actual or possible conflict of interest, an interested person must disclose the existence and nature of the financial interest and be given the opportunity to disclose all material facts to the Board.

Article IV – Procedures

• Recusal: After disclosure, the interested person shall leave the meeting during discussion and voting on the matter.
• Board Action: The remaining Board members shall determine if a conflict exists and decide whether the Foundation can obtain a more advantageous transaction that would not give rise to a conflict.
• Vote: If no alternative is reasonably possible, the Board may vote to authorize the transaction, provided it is fair and in the Foundation’s best interest.

Article V – Records of Proceedings

The minutes shall contain:

• Names of persons who disclosed conflicts.
• Nature of the conflict.
• Actions taken to determine if a conflict existed.
• Final decision of the Board.

Article VI – Annual Statements

Each director, officer, and committee member shall annually sign a statement confirming they:

• Have received a copy of this policy.
• Have read and understand it.
• Agree to comply with it.
• Understand the Polson Police Foundation is charitable and must engage primarily in 501(c)(3) activities.

Article VII – Violations

If the Board has reasonable cause to believe a person failed to disclose a conflict, it shall inform them and give an opportunity to explain. If not satisfactorily resolved, the Board may take corrective action.