RRCA Nonprofit Group Members Must Adopt Conflict of Interest Policy
The officers, directors, and employees of a nonprofit running club or event owe a duty of loyalty to the organization they serve, which requires that in serving their organization they act, not in their personal interests or in the interests of others, but rather act solely in the interests of the organization. Officers, directors, and employees may not use their positions, information they have about the organization, or property of the organization in a manner that allows them to secure a financial benefit for themselves or their relatives.
At the end of 2012, the RRCA underwent an IRS review of our nonprofit group. Based on IRS recommendations, the RRCA Board passed a policy in 2013 that requires ALL nonprofit members, utilizing the RRCA's group exemption, to adopt a Conflict of Interest Policy with an accompanying disclosure statement for all board members of their organization. This is also in compliance with best practices in governing a nonprofit organization and reporting to the IRS as part of the 990 tax return. The RRCA has a sample Conflict of Interest Policy with a disclosure statement that members can adapt to their club and adopt.
Nonprofit clubs/events in the RRCA's group exemption are required to fax or email a PDF copy of their board-approved Conflict of Interest Policy to firstname.lastname@example.org for inclusion with the members permanent records with the RRCA.
We are currently auditing our member's Conflict of Interest documentation on file with the RRCA. Your organization will be contacted by the RRCA if the documentation is not on file. The required documentation must be filed with the RRCA in a timely manner to ensure compliance with our policy. If you are unsure about the filing status of your organization's Conflict of Interest policy, email a copy containing the name of your organization to email@example.com, and we will place it on file.
The RRCA National Office will not manage conflicts of interest for local clubs as ALL of our nonprofit group members are self-governed by their locally elected board of directors. Local members must address concerns about conflicts of interest with their local board of directors. However, in cases of gross abuse of an approved Conflict of Interest Policy by local board members, the RRCA may review practices, provide guidance, warnings, or follow the procedures outlined in the RRCA's Member Accountability Process.