Conflict of Interest: Paid teachers as board members in a homeschool group
A homeschool leader is concerned about a conflict of interest if she wants to be a board member and paid teacher.
Jessica, who wants to start a homeschool co-op emailed HomeschoolCPA Carol Topp this situation:
“I have a question about the conflict of interest issue. Three ladies and I would like to incorporate to teach classes together and form a co-op. If we are the three board members, then does that mean we cannot profit by also teaching? Do you have any article that clarifies that?”
Listen as Carol explains:
- The conflict of interest between being on the board and being paid by a nonprofit
- Inurement and self-dealing
- Why it is not a good practice for nonprofit to have paid staff also serve as board members.
- Three options Jessica has:
- Form a 3-way partnership (a for-profit business)
- Have a separate, independent board that hires teachers as staff
- Grow the board so the majority is not paid teachers
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