Standards & Practices
Issue 2 – Conflicts of Interest
In This Issue
For this installment of the S&P E-Bulletin, we're covering Standard 4 - Conflicts of Interest - and the associated Practices. Also included in this edition are some notes from Land Trust Alliance publications (as well as links to helpful Land Trust Alliance material on the subject), and additional Texas-specific commentary.
We hope that this Bulletin will broaden readers' knowledge and expertise, expand the discussion of pertinent issues, and help to put into context some of the very real challenges facing land trusts and the further progress of conservation goals in Texas. Special thanks to Allison Elder for content and commentary for this issue, as well as June Kachtik, Gary Amaon, and Maria Trunk for input and advice regarding this topic. Thanks also to Sylvia Bates of the Land Trust Alliance for her review of the material.
Standard 4: Conflicts of Interest
"The land trust has policies and procedures to avoid or manage real or perceived conflicts of interest."
Practice 4A: Dealing with Conflicts of Interest
The land trust has a written conflict of interest policy to ensure that any conflicts of interest or the appearance thereof are avoided or appropriately managed through disclosure, recusal or other means. The conflict of interest policy applies to insiders (see definitions), including board and staff members, substantial contributors, parties related to the above, those who have an ability to influence decisions of the organization and those with access to information not available to the general public. Federal and state conflict disclosure laws are followed.
Practice 4B: Board Compensation
Board members do not serve for personal financial interest and are not compensated except for reimbursement of expenses and, in limited circumstances, for professional services that would otherwise be contracted out. Any compensation must be in compliance with charitable trust laws. The board's presiding officer and treasurer are never compensated for professional services.
Practice 4C: Transactions with Insiders
When engaging in land and easement transactions with insiders (see definitions), the land trust: follows its conflict of interest policy; documents that the project meets the land trust's mission; follows all transaction policies and procedures; and ensures that there is no private inurement or impermissible private benefit. For purchases and sales of property between the land trust and insiders, the land trust obtains a qualified independent appraisal prepared in compliance with the Uniform Standards of Professional Appraisal Practice by a state-licensed or state-certified appraiser who has verifiable conservation easement or conservation real estate experience. When selling property to insiders, the land trust widely markets the property in a manner sufficient to ensure that the property is sold at or above fair market value and to avoid the reality or perception that the sale inappropriately benefited an insider.
Texas Land Trust Council