Non-profit conflict of interest?

[annibe11e]

I'm not sure where to go for this information. I was invited to sit on a board for a local non-profit. They need graphic design and t-shirt printing services for an upcoming fundraiser. Well, my husband does both of those things freelance. I'm trying to figure out if it would be unethical/illegal for the organization to hire my husband to do the shirts.

Anyone here know? Or know where I could get this info?

The non-profit is small and run by people with good intentions but not enough knowledge for me to feel confident asking them.

[bjl584]

Non-profit doesn't mean they have to do everything for free. They can still have cash inflows and outflows in order to operate their organization. I don't see an issue with them hiring you to make their t-shirts.

[snafu]

Does the organization have any rules on nepotism in their mission statement? How big is the contract? Is it worth asking other companies/ providers for 'bids?' Who provided shirts/promo material in the past? Does anyone else involved in the organization have relatives or friends interested in the contract?

If there is a profit, hiring your husband can be viewed as nepotism by others. Who makes the final decision? Who supervises your husband's production? Will majors on the board sign off on the contract with your husband to provide balance? How comfortable are you defending the decision to hire a relative?

If your husband plans to donate [any] time and product, that would be a generous support of your position in this non profit organization.

[TexasHusker]

I would do it as a donation or I wouldn’t do it at all. The very fact that you have questions means others will too. Thus, you have no upside besides a few dollars, but plenty of downside with a black eye to your reputation, whether or not it is deserved.

[disneysteve]

I'm trying to figure out if it would be unethical/illegal for the organization to hire my husband to do the shirts.

I would do it as a donation or I wouldn’t do it at all. The very fact that you have questions means others will too.

I've served on our synagogue Board for 10 years, including 2 as President. This issue comes up all the time. It is not unethical or illegal to hire a member or their spouse to do work for the organization. However, as TH points out, it sometimes just doesn't look good and makes people question the integrity of the Board. That alone shouldn't stop you from doing it. You just need to make sure you go through a real and transparent bid process. At our place, the rule is 3 bids for anything of significance.

It's short sighted to automatically bar members and their families from doing work for the organization because those are very often the people willing to give you the best price. For example, they may charge only their cost for supplies and donate their labor. Sometimes, they even go beyond that.

Most non-profits run a pretty tight budget so standing on principle when it's going to cost the group money really makes no sense in the long run. Just don't automatically hand a job to a member or their spouse without getting a few legit competing bids and sharing that info with the leadership team. Whether or not your husband gets the job should not be your decision.