We had our board meeting yesterday and voted to adopt the IRS version of this policy at our next general meeting. Aside from the fact that it would be difficult to write our own version, we figured if it is the example they use, then that is what they want. It is a little formal for us, but who knows what the future holds....
Can the IRS document be used word for word? If so, maybe that is the best way to go. Our school isn't very formal. This is a fomality for the Goverment. I bet it's pretty legal.
Actually, the policy will be invoked more often than you think.
What if one of your parents - who is also a board member - wants to bid on T-shirt sales or the annual fundraiser?
What if your vendor offers the fundraising committee members "free stuff"? If it's beyond a token item, that's compensation.
What if an officer whose family has a restaurant can donate food "at cost" for an event? That's still a financial transaction where an unscrupulous person could benefit or even where another restaurant could challenge how THAT one was selected. Much better you know in advance any ties to those making the decisions.
Note: this policy doesn't say that a decision-maker can't do business with the PTO - just that they can't do so without disclosure and everyone agreeing.
The funny thing is that we do not allow for compensation - we can't afford to pay anyone (we do reimburse out of pocket expenses). But I can see the point for needing this kind of policy if you've got thousands and thousands of dollars and are doing major improvements.
The only part that I would change if I could (but I doubt the IRS would look upon it favorably) would be the annual renewals clause, because with the number of people in and out of the organization, remembering to have that paper signed would be a pain. However, since officers must know and comply with bylaws, maybe a form that says they've read and will comply with *all* the rules - including the conflict of interest policy- of the PTO would be a good thing. Our meeting got rescheduled until tomorrow, so I don't have any feedback from our board yet. Will let you know what they say!
