The "conflict of interest" can also depend on the state you are in, etc. Some states define it more than others do. I know in VA, for us to become incorporated through the State Corporation Commission we have to have a "Conflict of Interest" policy that is agreed to, in writing, each year by the current board. This policy is a standard one (from the state website) and includes facts that anyone who would benefit in some fashion (not just financially) can not be involved in the discussion, vote, etc.
I have read up on this topic and there have been several discussions on this exact matter. Here is a link to one string that is pretty balanced. You can sarch for some of the others.
It is not necessarily a conflict of interest if there is full disclosure. That being said, it is certainly easier to just stay away from even a hint of something that may be viewed as a conflict. I would definitely want to involve the general membership if it was being considered.
Many school fundraisers benefit a business owned by a school parent or employee. The key is to ensure no conflict of interest exists in the approval process.
For example, if a board member is submitting a fundraiser proposal that would be of benefit to his/her personal business, the board (or the committee responsible for selecting school fundraisers) needs to solicit competitive proposals for comparison purposes. All proposals would be compared using the same "measuring stick" prior to the board/committee's recommendation report, the motion, and the vote.
During this evaluation process (prior to the motion/vote), no representative from the businesses that submitted proposals are allowed to have access to info included in any other proposals. And, no business is allowed to "sweeten the deal" after submitting their proposal. In other words, the first proposal submitted by each business should be the only proposal they may submit.
And, while not required by Roberts Rules, the board member that submitted a proposal on behalf of his/her business ought to abstain from participating in the comparison process and from casting a vote. This will help ensure the avoidance of appearance of impropriety.
If all steps in approving the fundraiser are completed in a transparent and fair manner, there is absolutely no reason why a member of the board cannot propose having their business run a school fundraiser or profit from their business having been selected to run a school fundraiser.
IS IT A CONFLICT OF INTEREST IF A BOARD MEMBER OFFER A SERVICE (TAKING PICTURES, SELLING JEWELRY) TO THE SCHOOL AND CHARGE A FEE TO THE STUDENTS. AND THEN GIVES THE SCHOOL A PERECENTAGE OF THE PROFIT BACK TO PTO. IS THERE A RULE STATING THAT A TEACHER/CO-PRESIDENT CANNOT PROFIT FROM A SCHOOL FUNCTION OR EVENT.
