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Village Hope International: Conflict of Interest Policy

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01. Introduction

Village Hope International (VHI) is a U.S.-based 501(c)(3) nonprofit organization committed to supporting vulnerable children and their families through access to formal education and modern healthcare services. Operating both domestically and globally, VHI delivers programs that include child sponsorship, caregiver support, clean drinking water initiatives, healthcare training, and life-saving medicines. In pursuit of this mission, VHI upholds the highest standards of integrity, transparency, and accountability across all levels of governance and operations.

 

This Conflict of Interest Policy is established to ensure that the decisions and actions of Village Hope International’s board members, officers, employees, volunteers, and affiliated agents are made in the best interests of the organization and its beneficiaries. It is designed to comply with applicable laws and regulations, including:

  • The California Nonprofit Public Benefit Corporation Law (Cal. Corp. Code §5000 et seq.).

  • U.S. Internal Revenue Code Section 501(c)(3) and related Treasury regulations.

  • International best practices for nonprofit governance, including standards set forth by the International Non-Governmental Organizations Accountability Charter and other relevant frameworks

 

Conflicts of interest - whether actual, potential, or perceived can compromise the integrity of VHI’s mission and erode public trust. This policy provides clear guidance for identifying, disclosing, and managing such conflicts to safeguard the organization’s charitable purpose and ensure that all decisions are made free from undue influence or personal gain.

 

Village Hope International embraces a culture of ethical leadership and fiduciary responsibility. By adhering to this policy, all stakeholders affirm their commitment to the values of impartiality, fairness, and stewardship that define VHI’s work in advancing education and healthcare for vulnerable communities worldwide.

 

02. Definitions

For the purposes of this Conflict of Interest Policy, the following terms are defined as follows:

Conflict of Interest:

A situation in which a Covered Person’s personal, financial, professional, or other interests could compromise or appear to compromise their ability to act in the best interests of Village Hope International.

Covered Person:

Any individual who serves as a board member, officer, employee, volunteer, contractor, or agent of Village Hope International, whether in the United States or abroad.

Interested Person:

A Covered Person who has a direct or indirect financial interest, as defined below, in a transaction or arrangement involving Village Hope International.

Financial Interest:

An interest that may result in personal financial benefit to a Covered Person or to their family member, business associate, or affiliated entity. This includes, but is not limited to:

  • Ownership or investment in any entity with which VHI has a transaction or arrangement.

  • Compensation received from VHI or from any entity with which VHI has a transaction or arrangement.

  • Potential ownership or investment interests in future transactions involving VHI.

Family Member:

A spouse, domestic partner, parent, child, sibling, in-law, or any individual residing in the same household as the Covered Person.

Material Benefit:

Any tangible or intangible gain, advantage, or privilege that could reasonably be expected to influence a Covered Person’s judgment or decision-making.

 

 

Disclosure:

The act of fully and promptly informing the Board of Directors or designated compliance officer of any actual, potential, or perceived conflict of interest.

Recusal:

The process by which a Covered Person abstains from participating in discussions, decisions, or votes related to a matter in which they have a conflict of interest.

Independent Director:

A member of the Board of Directors who has no material financial interest in Village Hope International or any related party transaction, and who meets the independence criteria under California Corporations Code §5227 and applicable IRS guidelines.

Related Party Transaction:

Any transaction or arrangement between Village Hope International and a Covered Person, their family member, or affiliated entity that may result in a financial or material benefit.

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03. Disclosure Procedures

To uphold the integrity of Village Hope International’s mission and ensure transparency in all decision making processes, the following procedures shall govern the disclosure and management of conflicts of interest:

Duty to Disclose  

All Covered Persons must promptly disclose any actual, potential, or perceived conflict of interest to the Board of Directors or designated compliance officer. Disclosure must be made:

  • Prior to engaging in any transaction or arrangement involving Village Hope International.

  • At the time of onboarding or appointment to a role within the organization.

  • Annually, through a signed Conflict of Interest Disclosure Statement.

  • Whenever circumstances change that may give rise to a new conflict.

Disclosure Statement  

Village Hope International shall require all board members, officers, and key employees to complete and sign a Conflict of Interest Disclosure Statement annually. This statement shall include:

  • Any financial interests in entities doing business with VHI.

  • Any familial or professional relationships that may influence decision-making.

  • Any other affiliations that could reasonably be perceived as a conflict.

Review of Disclosures  

Disclosures shall be reviewed by the Board Chair, Governance Committee, or designated compliance officer. If a conflict is identified, the reviewing body shall:

  • Determine whether the conflict is material.

  • Recommend appropriate mitigation measures, including recusal, divestment, or termination of the transaction.

  • Document the review and resolution in official meeting minutes.

Recusal and Abstention  

Any Covered Person with a conflict of interest shall:

  • Refrain from participating in discussions, deliberations, or votes related to the matter.

  • Leave the meeting room during relevant proceedings, unless requested to provide factual information.

  • Be excluded from quorum counts for decisions involving the conflict.

Board Oversight and Documentation  

All conflict-related disclosures, reviews, and resolutions shall be:

  • Recorded in the minutes of the relevant board or committee meeting.

  • Retained in accordance with Village Hope International’s document retention policy.

  • Made available for audit or regulatory review upon request.

Confidentiality and Non-Retaliation  

Disclosures shall be treated with confidentiality and professionalism. Village Hope International prohibits retaliation against any individual who, in good faith, reports a conflict of interest or participates in its resolution.

 

04. Policy Enforcement

Village Hope International is committed to maintaining the highest standards of ethical conduct and fiduciary responsibility. To ensure the effectiveness of this Conflict of Interest Policy, the following enforcement mechanisms shall apply:

Oversight and Accountability  

The Board of Directors, through its Governance Committee or designated compliance officer, shall oversee the implementation and enforcement of this policy. This includes:

  • Monitoring compliance with disclosure procedures.

  • Investigating potential violations.

  • Recommending corrective actions or sanctions as appropriate.

Investigation of Violations  

Alleged violations of this policy shall be reviewed promptly and confidentially. The reviewing body may:

  • Request written statements or documentation from involved parties.

  • Interview relevant individuals.

  • Consult legal counsel or external advisors as needed

Corrective Actions  

If a violation is confirmed, Village Hope International may impose corrective measures, including but not limited to:

  • Formal reprimand or written warning.

  • Removal from decision-making roles related to the conflict.

  • Suspension or termination of employment, volunteer service, or board membership.

  • Referral to regulatory authorities if required by law.

Board-Level Review  

In cases involving board members or executive leadership, the full Board of Directors shall be informed and may vote on appropriate actions. Any director with a conflict shall recuse themselves from such deliberations and votes.

Whistleblower Protection  

Village Hope International prohibits retaliation against any individual who, in good faith, reports a conflict of interest or participates in an investigation. Reports may be submitted confidentially and will be handled with discretion and professionalism.

 

05. Annual Review and Policy Updates  

This policy shall be reviewed annually by the Board of Directors to ensure continued compliance with:

  • California Corporations Code §5230–§5240.

  • IRS governance guidelines for 501(c)(3) organizations.

  • International nonprofit accountability standards

Updates shall be documented and communicated to all Covered Persons, with renewed disclosure statements collected as needed.

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