Conflicts that are not disclosed and managed can result in significant penalties, called "intermediate sanctions," assessed against the person who benefits as well as against the organization. (See IRS information on “excess benefit transactions.”)
Board members, volunteers and employees should be aware that conflicts of interest can arise through various relationships including, but not limited to, family relationships, economic relationships and personal or intimate relationships. No board member, volunteer or employee of the Hawaii Patients Union, llc shall operate or act in any manner that is contrary to the best interests of the Hawaii Patients Union, llc.
A Conflict of Interest is created when:
a. A board member, volunteer or employee or a family member of the foregoing is a party to a contract, or involved in a transaction with the Hawaii Patients Union, llc for goods or services.
b. A board member, volunteer or employee or a family member of the foregoing has a material financial interest in a transaction between the Hawaii Patients Union, llc and an entity in which the director, employee or volunteer, or a family member has an interest or relationship.
c. A board member, volunteer or employee or a family member of the foregoing is engaged in some capacity or has a material financial interest in a business or enterprise that competes with the Hawaii Patients Union, llc.
d. A board member, volunteer or employee or a family member of the foregoing has a personal interest that conflicts with the interests of the Hawaii Patients Union, llc or arises in situations where a board member, volunteer or employee or a family member of the foregoing has divided loyalties (also known as a "duality of interest").
A conflict arising out of a personal or professional interest can occur in situations that result in inappropriate financial gain to persons in authority at the Hawaii Patients Union, llc and can lead to financial penalties and violations of IRS regulations. Situations or transactions arising out of a conflict of interest also can result in either inappropriate financial gain or the appearance of a lack of integrity in the Hawaii Patients Union, llc decision-making process and maintenance of tax-exempt status with the IRS. Other situations may create the appearance of a conflict, or present a duality of interests, with a person who has influence over the activities or finances of the Hawaii Patients Union, llc.
Hawaii Patients Union, llc takes a broad view of conflicts and board members, volunteers, employees or a family member of the foregoing are urged to think of any situation and or transaction with an employee or member of the Board of Directors of the Hawaii Patients Union, llc or a major donor to the Hawaii Patients Union, llc or anyone else who is in a position of influence over the Hawaii Patients Union, llc.
Board members, Volunteers, Employees or Family Members of the Foregoing
A board member, volunteer or employee or a family member of the foregoing should avoid situations in which they may be called upon to negotiate or do business with an organization in which the employee (or close relative of the employee or other person with whom the employee has a close personal relationship) has substantial ownership or other interest. Because of the potential for a conflict of interest, all board members, volunteers or employees considering or having employment, performing services or consulting work outside the Hawaii Patients Union, llc must have prior written approval from the Officership to accept fees for service when representing the Hawaii Patients Union, llc.
Disclosure
It is the duty of all board members, volunteers, employees or family member of the foregoing to be aware of this policy, and to identify conflicts of interest and situations that may result in the appearance of a conflict and to disclose those situations, conflicts or potential conflicts to (i) the Chair of the Board or (iv) other designated person, as appropriate.
A board member, volunteer or employee or a family member of the foregoing is hereby urged to disclose conflicts as they arise as well as to disclose those situations that are evolving that may result in a conflict of interest. Advance disclosure must occur so that a determination may be made as to the appropriate plan of action to manage the conflict.
A board member, volunteer or employee or a family member of the foregoing must disclose to the Chair of the board as soon as the person with the conflict is aware of the conflict, potential conflict or appearance of a conflict exists.
In the event it is not entirely clear that a Conflict of Interest exists, the individual with the potential conflict shall disclose the circumstances to the Chair of the Board who shall determine whether there exists a Conflict of Interest that is subject to this policy.
All such circumstances should be disclosed to the Chair, as appropriate, and a decision made as to what course of action the organization and/or individuals should take so that the best interests of the Hawaii Patients Union, llc are not compromised by the personal interests of stakeholders in the nonprofit.
Reporting Possible Violations
Hawaii Patients Union, llc maintains an “open door” policy to communicate possible violations of any the Hawaii Patients Union, llc policies. All communications of this nature will be kept in strictest confidence and will be investigated by the Officership thoroughly and fairly.
Please describe below any relationships, transactions, positions you hold (volunteer or otherwise), or circumstances that you believe could contribute to a conflict of interest between the Hawaii Patients Union, llc and your personal or professional interests, financial or otherwise:
