Family Members Serving on the Same Board
Brothers or members of the same family may serve in the same ship after getting approval from the Commander Naval Military Personnel Command, unless the ship is in a hostile fire area. Any member of the association can serve on the Board, unless the member is delinquent or convicted. Put the organization’s needs first when considering family board members.
The law allows more than one owner from a unit to serve, often spouses. Most boards range from three to 31 members. A nonprofit does not need members to make decisions. The board holds management accountable, helps plan strategy, and serves as a sounding board.
Immediate family can work together unless management sees a conflict risk. Walmart lets associates keep working there after restructuring. No laws explicitly ban family on boards, but best practices suggest no one family dominates. Funding sources shape rules on relatives serving.
Cons of Becoming a 501c3
List cons of becoming 501c3: Complicated registration process; Need professionals; Complex laws. To find 501c3 status, search online databases.
Conflict of Interest on Volunteer Boards
A volunteer member has a conflict of interest if: Promoting private or personal interest results in interference with responsibilities to the nonprofit; Gaining personal advantage or benefit because of position or relationship with the nonprofit.
Board directors must avoid illegal, unethical conflicts of interest. Lawsuits hold directors liable for violating duty of loyalty or failing to address conflicts. Most states’ corporation laws prohibit financial gain from corporate decisions. Violating nonprofit law risks losing tax-exempt status.
Consider banning family members from serving together on nonprofit boards. More objective, skilled, experienced individuals likely exist in the community to provide governance.
To manage conflicts of interest: Disclose all relevant connections, relationships, affiliations. Recuse from relevant discussions and decisions. If serving nonprofits with potential overlap, disclose and establish firewalls. Balance inclusiveness and avoiding family feuds.