Q&As

Some nonprofit organizations have nepotism and fraternization policies that forbid board members from having family or other close relations with staff. If you do not have a policy, each situation needs to be treated as a special case. The board should determine whether it can or wants to live with this potentially difficult situation.
Here are some issues to discuss:

• Do you have a strong conflict-of-interest policy? Do you have a confidentiality policy? 
• Is a board member able to make unbiased decisions when a close friend is possibly benefiting from the outcome? 
• Is the board concerned about confidential board issues being passed on to staff?
• Is the chief executive aware of this situation? How does he or she feel about a staff member having direct contact with a board member, and possibly passing on unfiltered information to his or her supervisor?
• Is it possible that this staff member gains an indirect influence in the operations of the organization?

Ultimately, it is important to focus on a strong confidentiality policy and discuss ethical behavior in general rather than assume that a fraternization policy will eliminate the actual problem.

For more information, see Managing Conflicts of Interest in our bookstore.