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Conflict of Interest Policy

Conflict of Interest Policy of
The First Kingdom Church of Asphodel

Article I Purpose

The purpose of the conflict of interest policy is to protect the interests of the First Kingdom Church of Asphodel (the Church) when it is contemplating entering into a transaction or arrangement that might benefit the private interest of an officer, minister, elder or member of the Church or might result in a possible excess benefit transaction. This policy is intended to supplement but not replace any applicable state and federal laws governing conflict of interest applicable to nonprofit and charitable organizations.

Article II Compensation Policy

1. As specified in the Church Constitution, officers, ministers and elders of the Church are not compensated for the performance of their duties.

2. The Board of Directors may approve, by unanimous vote, the following payments or compensations to individuals or organizations:

a) Fair market value rental or "site fee" for the use of a space for Church meetings or other functions, provided a fee is normally charged to other organizations or individuals using the space in a similar manner.

b) Reasonable travel expenses for a teacher, speaker or performer at a Church function, if the cost of travel would constitute a significant financial burden to the presenter.

c) Fair market value compensation for labor of a non-religious nature which is well outside the member’s scope of duties, and cannot be obtained on a volunteer basis from the membership.

d) Teaching fees for church sponsored educational services provided by members, as restricted in the bylaws, and requested from participants directly.

e) Services of an educational nature provided by non-members, which may be compensated directly by the church in exceptional circumstances.

f) Equipment and supplies purchased at fair market value for use at Church meetings and functions.

g) Fees related to the filing of legal and financial organizational paperwork with federal, state and local governments.

3. Expenditures and compensations to any individual or organization which exceed $50 in any month will be announced to the membership at the next meeting, and records will be kept by the clerk for no less than five years and made available to the membership on request.

Article III Procedures

1. Discussion

a. In the discussion of expenditures, all involved parties must state plainly the benefits to any director, officer or member, directly or indirectly, through business, investment, or family, regardless of whether the individual who would be benefited is involved directly in the discussion or decision making.

b. Members concerned about a real or perceived conflict of interest may request discussion of the expenditures at a General Meeting of the Membership, or request a special meeting with the board of directors.

c. The chairperson of the governing board or committee shall, if appropriate, appoint a disinterested person or committee to investigate alternatives to the proposed transaction or arrangement.

d. No member is prohibited from providing information to the board based on their real or perceived financial interest in the outcome of such proceedings.

2. Resolution

a. Votes on any matter pertaining to a conflict of interest may only be cast by disinterested parties.

b. After exercising due diligence, the governing board or committee shall determine whether the Church can obtain with reasonable efforts a more advantageous transaction or arrangement from a person or entity that would not give rise to a conflict of interest.

c. If a more advantageous transaction or arrangement is not reasonably possible under circumstances not producing a conflict of interest, the governing board or committee shall determine by a unanimous vote of the disinterested directors whether the transaction or arrangement is in the Church’s best interest, for its own benefit, and whether it is fair and reasonable. In conformity with the above determination it shall make its decision as to whether to enter into the transaction or arrangement.

3. Violations of the Conflicts of Interest Policy

a. If the governing board or committee has reasonable cause to believe a member has failed to disclose actual or possible conflicts of interest, it shall inform the member of the basis for such belief and afford the member an opportunity to explain the alleged failure to disclose.

b. If, after hearing the member’s response and after making further investigation as warranted by the circumstances, the governing board or committee determines the member has failed to disclose an actual or possible conflict of interest, it shall take appropriate disciplinary and corrective action.

Article IV

Records of Proceedings

The clerk shall record the content of the proceedings, including:

a. The names of the persons who disclosed or otherwise were found to have a financial interest in connection with an actual or possible conflict of interest, the nature of the financial interest, any action taken to determine whether a conflict of interest was present, and the board’s decision as to whether a conflict of interest in fact existed.

b. The names of the persons who were present for discussions and votes relating to the transaction or arrangement, the content of the discussion, including any alternatives to the proposed transaction or arrangement, and a record of any votes taken in connection with the proceedings.

Article V Periodic Reviews

To ensure the Church operates in a manner consistent with charitable purposes and does not engage in activities that could jeopardize its tax-exempt status, periodic reviews shall be conducted. The periodic reviews shall, at a minimum, include the following subjects:

a. Whether compensation arrangements and benefits are reasonable, based on competent survey information, and the result of arm’s length bargaining.

b. Whether partnerships, joint ventures, and arrangements with management organizations conform to the Church’s written policies, are properly recorded, reflect reasonable investment or payments for goods and services, further charitable purposes and do not result in inurement, impermissible private benefit or in an excess benefit transaction.

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