Avoidance of conflicts of interest is rather like the fair administration of justice; each not only must be done but must also be seen to be done. I would not want to be governed ONLY by the IRS rules, which have a clear and rather narrow objective in mind. If one has to wriggle his/her way along a tortuous path through such rules, one is almost certainly in a conflict situation, in the broader sense of the term. Harry "Those who play with cats must expect to get scratched" - Cervantes, "Don Quixote" Harry Needham, M.A., CFE, etc. President Harry Needham Consulting Services Inc. Training & consulting services for heritage institutions - and others! 74 Abbeyhill Drive Kanata, Ontario K2L 1H1 Canada email: [log in to unmask] (Voice) +1.613.831-1068 (Fax) +1.613.831-9412 ----- Original Message ----- From: Barry Szczesny <[log in to unmask]> To: <[log in to unmask]> Sent: Tuesday, August 15, 2000 11:25 AM Subject: Ethical Question; Conflicts of Interest; IRS Rules > As a few folks on the list have pointed out, the IRS does have rules > governing conflicts of interest. It should be of little surprise that the > rules can be a bit complex, confusing, and even counterintuitive -- yes, a > financial arrangement with a fourth cousin of a board member, given the > circumstances, could possibly be a no-no (not a legal term of art). AAM has > guidance to help museums understand and navigate these rules that is > available through its bookstore at www.aam-us.org. Here's the listing from > the AAM bookstore catalogue: > > CONFLICTS OF INTEREST: NEW IRS RULES FOR BOARDS, DIRECTORS AND EXECUTIVE > OFFICERS > Gardner, Carlton & Douglas/Independent Sector/Internal Revenue Service/KPMG, > U.S. > > New rules establish penalties--and procedures to avoid them--for improper > salaries, compensation and other financial transactions between nonprofit > organizations and the managers who control them. Conflicts of Interest > groups three reports that offer an explanation of the new rules and how they > affect museums. Know the details of your responsibilities and liabilities. > Required reading for trustees, board members, directors, financial officers > and other executives of every type of museum. > -- PAPER 62PP. 1998 · NO ISBN · $ 15.00 > ******************* > Barry Szczesny > AAM Government Affairs > --not an official communication > > Barry G. Szczesny, Esq. > Government Affairs Counsel and > Assistant Director > Government and Public Affairs > American Association of Museums > 1575 Eye Street, NW > Suite 400 > Washington, DC 20005 > > 202/289-9125 Phone > 202/289-6578 Fax > [log in to unmask] E-mail > http://www.aam-us.org Website > > ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ > Important Subscriber Information: > > The Museum-L FAQ file is located at http://www.finalchapter.com/museum-l-faq/ . You may obtain detailed information about the listserv commands by sending a one line e-mail message to [log in to unmask] . The body of the message should read "help" (without the quotes). > > If you decide to leave Museum-L, please send a one line e-mail message to [log in to unmask] . The body of the message should read "Signoff Museum-L" (without the quotes). > ========================================================= Important Subscriber Information: The Museum-L FAQ file is located at http://www.finalchapter.com/museum-l-faq/ . You may obtain detailed information about the listserv commands by sending a one line e-mail message to [log in to unmask] . The body of the message should read "help" (without the quotes). If you decide to leave Museum-L, please send a one line e-mail message to [log in to unmask] . The body of the message should read "Signoff Museum-L" (without the quotes).