Does the New York Non-Profit Revitalization Act of 2013 apply to you?

Below is a summary of key points as they relate to conflict of interest.

Conflicts of Interest and Related Party Transactions

1. Creates new definitions of “independent director,” “related party” and “related party transactions.”

2. Prohibits an employee of a not-for-profit corporation from serving as the chair of the board of directors.

3. Prohibits directors, officers, and members from being present when compensation is deliberated, if such individuals might benefit from the compensation under discussion.

4. Prohibits not-for-profit corporations from entering into related party transactions, unless the board determines the transaction to be “fair, reasonable, and in the corporation’s best interest.”

5. Requires the board to consider alternatives to a related party transaction, when a related party has a “substantial financial interest.”

6. Prohibits related parties from participating in voting or deliberations concerning a related party transaction.

7. Authorizes the Attorney General to enjoin, void or rescind related party transactions or seek additional damages and other remedies, including removal of directors and officers.

8. Requires not-for-profit corporations to adopt conflict of interest policies and sets forth the requisite elements of such policies.

9. Requires directors to file with the corporation’s secretary an annual statement of any potential conflicts.

10. Adds “key employees” to the list of individuals against whom legal action may be brought for misconduct in relation to corporate assets.

11. Includes parallel provisions in the EPTL to govern charitable trusts.

Osprey COI RiskManager™ (a powerful web-based solution) conflict of interest software, efficiently captures, tracks and reports the required disclosures for thousands of researchers, post-docs, fellows, board and faculty members, for any industry. The system also protects organizations by ensuring compliance with the new regulations set forth by the Public Health service (PHS) funds from the National Institutes of Health (NIH) 

 
 
Why COI RiskManager?

• Flexible and easy to use solution
• Meets your requirements
• 30 day implementation
• No long term contracts
• 100% client retention
• Outstanding customer service

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How to manage conflict of interest and conflict of commitment

Researchers and staff are often faced with competing demands on time and responsibilities. A "Conflict of Interest" occurs when an individual has the opportunity to use his or her position for personal financial gain or to benefit a company in which the individual has a financial interest.

A “Conflict of Commitment” exists when an employee's outside activities demand their time and attention to the point where it interferes with the individual’s responsibilities. It may also occur when a researcher participates in competing obligations such as: working on another project, investing time in a new grant application, mentoring or peer review.

Conflicts of interests or commitments may not always be a concern; rather, the way in which the conflict is managed makes all of the difference. Researchers are expected to be transparent about how their time is spent and report any interests that may cause a potential conflict.  By doing so, objective parties can review the nature of the disclosures and determine if any actions are required to remove the appearance of a conflict.  Transparency of information combined with performance of due diligence helps protect all parties from any possible negative future actions.  

Some organizations manage this process via paper which is very ineffective and opens them up to unnecessary risks and errors. Forward thinking organizations have implemented software solutions to manage and simplify their process while protecting themselves from undue consequences.

What are the benefits managing this process with COI software?

• Easy to use and deploy
• Reduces risk and costs
• Improves organizational effectiveness

How does it work?

• Automatically identifies potential conflicts
• Improves participant compliance levels
• Automates disclosure and review process
• Keeps an audit trail of actions

COI RiskManager: Disclose, Review, Report, Resolve.

• 30 day implementation
• No long term contracts
• 100% client retention
• Outstanding customer service

Contact Michael Vidoni for a demo: Phone 518-203-3995 or michael.vidoni@ospreysoftware.com