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To: cod_de_conduita_ong_ro <cod_de_conduita_ONG_RO@yahoogroups.com>
From: Mihai Lisetchi <aidong@xnet.ro>
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Date: Sat, 29 Oct 2011 14:26:47 +0300
Subject: [cod_de_conduita_ONG_RO] etica ONG: studii de caz
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despre probleme de etica in organizatii neguvernamentale (la altii! :)  )

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When is a Brother Not a Family Member?
by Amy Coates Madsen

The Boston Globe ( Khazei OK'd hiring brother at
nonprofit<http://cl.s4.exct.net/?qs=0eaf0fa9b651c5904c682dac36f5b5b181504a5d193bfd762a450f03428970b3>
,
8/22/2011) reported that Democratic primary Senate candidate Alan Khazei,
former president and chief executive officer of the nonprofit, Be the
Change, approved a consulting contract for his brother, Lance Khazei, a
Hollywood writer, for his Be the Change work on media strategy.  According
to the article, Lance Khazei received $50 per hour to work on establishing a
Los Angeles office. Alan Khazei, stated that the compensation was "such a
small amount, $50 an hour, $2,500 a month", totaling about $40,000 over
several years, in what appears to be an attempt to minimize the situation.

The contract with Alan Khazei's brother was not initially reviewed and
approved by the board of directors of Be the Change. In fact, as reported by
the Globe, members of the board of directors only learned about the
consulting engagement when it reviewed its annual tax filing, the Form 990.

Be the Change has a conflict of interest policy that states if officers have
a financial interest "directly or indirectly, through business, investment
or family," the transaction would need to come before the board to determine
whether the transaction constitutes a conflict of interest, and that
individuals with a potential conflict should not be present during the
review of the transaction.  As such, from all accounts, it appears that Be
the Change has a standard conflict of interest policy.

Caught in a public relations scandal, the organization argued that the
brother of a chief executive should not be considered a family member under
the organization's conflict of interest policy. In a memo drafted by Be the
Change's attorney, the organization argues that the contract with Lance
Khazei was not in violation of the conflict of interest policy because Alan
Khazei would not benefit financially from his brother's income, a gross
misinterpretation of the intent of the policy. Most conflict of interest
policies address decisions that financially impact officers or related
parties, thereby intending to prevent individuals or their family members
from benefiting from the decision.

So, in effect, Be the Change is claiming that because "family" is not
defined, that a brother would fall outside of the definition of a family
member; and any financial benefit to him, therefore, is outside the scope of
the conflict of interest policy. Conventional wisdom is that a brother is
actually a family member.  Personnel policies generally define a brother as
a family member.  If you asked a person on the street if a brother would be
considered a member of the family, chances are, they would answer in the
affirmative.  Also, when looking at the IRS Form 990 (the informational form
nonprofits file annually with the IRS), the instructions state, "Unless
specified otherwise, the family of an individual includes only his or her
spouse, ancestors, brothers and sisters (whether whole or half blood),
children (whether natural or adopted), grandchildren, great-grandchildren,
and spouses of brothers, sisters, children, grandchildren, and
great-grandchildren."  Under the same document's definition of disqualified
persons, and family members of disqualified persons, however, brother and
sisters are not included:

"For this purpose, 'family member' includes only the individual's spouse,
ancestors, children, grandchildren, great grandchildren, and the spouses of
children, grandchildren, and great-grandchildren."

The Standards for Excellence: An Ethics and Accountability Code for the
Nonprofit Sector states that "Nonprofits should have a written conflict of
interest policy. The policy should be applicable to board members and staff,
and volunteers who have significant independent decision making authority
regarding the resources of the organization.  The policy should identify the
types of conduct or transactions that raise conflict of interest concerns,
should set forth procedures for disclosure of actual or potential conflicts,
and should provide for review of individual transactions by the uninvolved
members of the board of directors."

For more information on the Standards for Excellence educational resource
packet on conflicts of interest available to members of the Standards for
Excellence Institute, please go
here<http://cl.s4.exct.net/?qs=0eaf0fa9b651c590d9d0358ef588b3fc3efaadb6ede5bfc82a7cb7b28709426f>.
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.

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-- 
Sa inotam sanatosi!

Mihai Lisetchi
........................

AID-ONG
Agentia pentru Informarea si Dezvoltarea Organizatiilor Neguvernamentale -
Agency for Information and Development of Non-governmental Organizations

e-mail: aidong@xnet.ro, Internet: www.aid-ong.ro
mobile: +40-722-218 204, fax: +40-356-814 080,
Postal Address: O.P. 1, C.P. 191, Timisoara, 300790, Romania

....................
Clubul de Inot MASTERS Timisoara - MASTERS Timisoara Swimming Club
e-mail: contact@timisoara.inot-masters.ro, fax: +40 356 816 474, mobile: +40
722 218 204,
Internet: www.timisoara.inot-masters.ro

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      <p>despre probleme de etica in organizatii neguvernamentale (la altii=
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			<p align=3D"left"> </p><table bgcolor border=3D"0" cellpadding=3D"0" cel=
lspacing=3D"0" width=3D"100%"><tbody><tr><td><table bgcolor border=3D"0" ce=
llpadding=3D"0" cellspacing=3D"0" width=3D"100%"><tbody><tr><td style=3D"fo=
nt-family: Arial;font-size: 13px;">
<div style=3D"text-align: center;font-family: Times New Roman;"><font size=
=3D"3"><span style=3D"font-weight: bold;">When is a Brother Not a Family Me=
mber?</span></font><span style=3D"font-family: Times New Roman;"><br>by Amy=
 Coates Madsen</span><br>
</div><br style=3D"font-family: Times New Roman;"><span style=3D"font-famil=
y: Times New Roman;">The Boston Globe (</span>
<a style=3D"font-family: Times New Roman;" href=3D"http://cl.s4.exct.net/?q=
s=3D0eaf0fa9b651c5904c682dac36f5b5b181504a5d193bfd762a450f03428970b3" title=
=3D"Khazei OK&#39;d hiring brother at nonprofit" target=3D"_blank">Khazei O=
K&#39;d hiring brother at nonprofit</a>
<span style=3D"font-family: Times New Roman;">, 8/22/2011) reported that De=
mocratic primary Senate candidate Alan Khazei, former president and chief e=
xecutive officer of the nonprofit, Be the Change, approved a consulting con=
tract for his brother, Lance Khazei, a Hollywood writer, for his Be the Cha=
nge work on media strategy.=A0 According to the article, Lance Khazei recei=
ved $50 per hour to work on establishing a Los Angeles office. Alan Khazei,=
 stated that the compensation was &quot;such a small amount, $50 an hour, $=
2,500 a month&quot;, totaling about $40,000 over several years, in what app=
ears to be an attempt to minimize the situation.</span><br style=3D"font-fa=
mily: Times New Roman;">

<br style=3D"font-family: Times New Roman;"><span style=3D"font-family: Tim=
es New Roman;">The contract with Alan Khazei&#39;s brother was not initiall=
y reviewed and approved by the board of directors of Be the Change. In fact=
, as reported by the Globe, members of the board of directors only learned =
about the=A0 consulting engagement when it reviewed its annual tax filing, =
the Form 990.</span><br style=3D"font-family: Times New Roman;">
<br style=3D"font-family: Times New Roman;">
<span style=3D"font-family: Times New Roman;">Be the Change has a conflict =
of interest policy that states if officers have a financial interest &quot;=
directly or indirectly, through business, investment or family,&quot; the t=
ransaction would need to come before the board to determine whether the tra=
nsaction constitutes a conflict of interest, and that individuals with a po=
tential conflict should not be present during the review of the transaction=
.=A0 As such, from all accounts, it appears that Be the Change has a standa=
rd conflict of interest policy.</span><br style=3D"font-family: Times New R=
oman;">
<br style=3D"font-family: Times New Roman;">
<span style=3D"font-family: Times New Roman;">Caught in a public relations =
scandal, the organization argued that the brother of a chief executive shou=
ld not be considered a family member under the organization&#39;s conflict =
of interest policy. In a memo drafted by Be the Change&#39;s attorney, the =
organization argues that the contract with Lance Khazei was not in violatio=
n of the conflict of interest policy because Alan Khazei would not benefit =
financially from his brother&#39;s income, a gross misinterpretation of the=
 intent of the policy. Most conflict of interest policies address decisions=
 that financially impact officers or related parties, thereby intending to =
prevent individuals or their family
 members from benefiting from the decision.</span><br style=3D"font-family:=
 Times New Roman;"><br style=3D"font-family: Times New Roman;"><span style=
=3D"font-family: Times New Roman;">So, in effect, Be the Change is claiming=
 that because &quot;family&quot; is not defined, that a brother would fall =
outside of the definition of a family member; and any financial benefit to =
him, </span><span style=3D"font-family: Times New Roman;">therefore, </span=
>
<span style=3D"font-family: Times New Roman;">is outside the scope of the c=
onflict of interest policy. Conventional wisdom is that a brother is actual=
ly a family member.=A0 Personnel policies generally define a brother as a f=
amily member.=A0 If you asked a person on the street if a brother would be =
considered a member of the family, chances are, they would answer in the af=
firmative.=A0 Also, when looking at the IRS Form 990 (the informational for=
m nonprofits file annually with the IRS), the instructions state, &quot;Unl=
ess specified otherwise, the family of an individual includes only his or h=
er spouse, ancestors, brothers and sisters (whether whole or half blood), c=
hildren (whether
 natural or adopted), grandchildren, great-grandchildren, and spouses of br=
others, sisters, children, grandchildren, and great-grandchildren.&quot;=A0=
 Under the same document&#39;s definition of disqualified persons, and fami=
ly members of disqualified persons, however, brother and sisters are not in=
cluded:</span><br style=3D"font-family: Times New Roman;">
<br style=3D"font-family: Times New Roman;"><span style=3D"font-family: Tim=
es New Roman;">&quot;For this purpose, &#39;family member&#39; includes onl=
y the individual&#39;s spouse, ancestors, children, grandchildren, great gr=
andchildren, and the spouses of children, grandchildren, and great-grandchi=
ldren.&quot;</span><br style=3D"font-family: Times New Roman;">

<br style=3D"font-family: Times New Roman;">
<span style=3D"font-family: Times New Roman;">The Standards for Excellence:=
 An Ethics and Accountability Code for the Nonprofit Sector states that &qu=
ot;Nonprofits should have a written conflict of interest policy. The policy=
 should be applicable to board members and staff, and volunteers who have s=
ignificant independent decision making authority regarding the resources of=
 the organization.=A0 The policy should identify the types of conduct or tr=
ansactions that raise conflict of interest concerns, should set forth proce=
dures for disclosure of actual or potential conflicts, and should provide f=
or review of individual transactions by the uninvolved members of the board=
 of directors.&quot;</span>
<br style=3D"font-family: Times New Roman;"><br style=3D"font-family: Times=
 New Roman;"><span style=3D"font-family: Times New Roman;">For more informa=
tion on the Standards for Excellence educational resource packet on conflic=
ts of interest available to members of the Standards for Excellence Institu=
te, please </span><a style=3D"font-family: Times New Roman;" href=3D"http:/=
/cl.s4.exct.net/?qs=3D0eaf0fa9b651c590d9d0358ef588b3fc3efaadb6ede5bfc82a7cb=
7b28709426f" title=3D"click here" target=3D"_blank">go here</a><span style=
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<span style=3D"font-family: Times New Roman;">.</span><br style=3D"font-fam=
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