[Chapter-delegates] Message from Internet Society Audit Committee Chair

[John More]

Vint

You are correct that generally conflicts can be dealt with internally, of course, best with a workable conflicts policy, through disclosure and voluntary recusal. The IRS and US state Attorney Generals (AGs) are most concerned with monetary abuses in non-profits, such as the President of the National Rifle Association receiving an expensive house and other benefits or organizations contracting out lucrative contracts to insider-related businesses, and with the use of tax-free funds in elections and certain types of political action.

At various times the Society’s 501c3 status has been used to justify unnecessary restrictions without reference as to how flexible these IRS provisions are.

Yours,

John More

> On Nov 9, 2020, at 9:33 AM, vinton cerf via Chapter-delegates <chapter-delegates at elists.isoc.org> wrote:
> 
> Andrew, et al,
> 
> It seems to me that ISOC's Board can largely decide how it wants to deal with conflict of interest. In many cases, simple disclosure of potential conflict is enough. Trustees can also voluntarily recuse themselves from a discussion in which they believe they have a conflict. I don't think that the IRS is necessarily the ultimate determinant. What does the ISOC legal counsel say?
> 
> v
> 
> 
> On Mon, Nov 9, 2020 at 9:29 AM Andrew Sullivan via Chapter-delegates <chapter-delegates at elists.isoc.org <mailto:chapter-delegates at elists.isoc.org>> wrote:
> On Mon, Nov 09, 2020 at 07:51:14PM +0530, sivasubramanian muthusamy wrote:
> >Dear Andrew.
> >
> >Isn't there room in the not-for-profit reporting formats to attach foot
> >notes to say that a certain Trustee is elected as a "Trustee elected by the
> >Chapters" and that it is necessary to that the Trustee comes from a Chapter
> >background, better if the elected Trustee has served or is serving as an
> >Officer, and that any conflict on Interest seen on paper is not significant
> >?
> 
> Sure.  And then the IRS gets to decide whether we have a significant conflict of interest in the Board and whether various remedies that are open to them need to be pursued.  From where I sit, this is a pretty serious threat to the organization and therefore I can understand why the Trustees think they have a duty not to permit it.  But again, if you want changes to the policy you'll have to convince the Trustees to make them, because I am not the person who could do it.  Also, again, this provision of the current policy is not the one that Heather announced needed to be clarified.
> 
> Best regards,
> 
> A
> 
> -- 
> Andrew Sullivan
> President & CEO, Internet Society
> sullivan at isoc.org <mailto:sullivan at isoc.org>
> +1 416 731 1261
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