In its document on Good Governance Practises, the IRS believes that governing boards of 501 c 3 organizations should be composed of ethical individuals well informed in related laws. Many questions have been raised about the relationship between the Wikipedia and its founder. The current discussions on, "yes, we have no child protection policy" and the need to protect a business model which allows sexual extremists unfettered access to children's minds and children to administrate their uploadings, seems to question even how much efficacy Jimmy Wales's privileged position has in relationship to how much it benefits from 'the business'.
One might even ask, "what is 'the business' and 'for whom'?" ... the Wikipedia as a loss leader for the benefit of a few privileged white folk ... as "the girl in Africa for whom this is all for quote-unquote" really isn't interested. Well, she have might been interested. Sadly, she was amongst 34,000 children under the age of five who die every day due to hunger and preventable diseases whilst the Wikipedia squabble over porno-pictures.
Duty of Loyalty
Although 'Due Diligence' and 'Duty of Care' are required of the responsible parties within NPOs, so too are they bound by a legal 'Duty of Loyalty'.
Responsible members of a charity owe society a "duty of loyalty" to act in the interest of the charity rather than out of a personal interest. This include an avoidance of "self dealing" and might involve:
acting solely in the interests of the charity
written procedures for determining whether a relationship, financial interest of business affiliation results in a conflict of interests
prescribing courses of actions in events where 'conflict of interests' exist.
For example, one such thing to do would be disclosing annually in writing any known financial interests that the individual has in any business transactions related to the charity (see; the IRS offers Form 1023 for a Conflict of Interest policy).
Additionally, there is also a 'duty of obedience' which requires directors to act only in the furtherance of its mission.
QUOTE
Conflict of interest policy
The purpose of a conflict of interest policy is to protect a tax-exempt organization's interest when it enters into a transaction or arrangement that might benefit the private interest of an officer or director of the Organization
A conflict of interest arises when a person in a position of authority over an organization, such as a director, officer, or manager, may benefit personally from a decision he or she could make. A conflict of interest policy consists of a set of procedures to follow to avoid the possibility that those in positions of authority over an organization may receive an inappropriate benefit.
Substantial contributor
Any individual or organization that gave more than $5,000 to you from the date you were formed or other date that your exemption would be effective, to the end of the year in which the contributions were received. This total amount contributed must also be more than 2% of all the contributions you received. A creator of a trust is treated as a substantial contributor regardless of the amount contributed.
Relationship
A relationship between you and the recipient organization includes the following situations:
The purpose of a conflict of interest policy is to protect a tax-exempt organization's interest when it enters into a transaction or arrangement that might benefit the private interest of an officer or director of the Organization
A conflict of interest arises when a person in a position of authority over an organization, such as a director, officer, or manager, may benefit personally from a decision he or she could make. A conflict of interest policy consists of a set of procedures to follow to avoid the possibility that those in positions of authority over an organization may receive an inappropriate benefit.
Substantial contributor
Any individual or organization that gave more than $5,000 to you from the date you were formed or other date that your exemption would be effective, to the end of the year in which the contributions were received. This total amount contributed must also be more than 2% of all the contributions you received. A creator of a trust is treated as a substantial contributor regardless of the amount contributed.
Relationship
A relationship between you and the recipient organization includes the following situations:
a. You control the organization or it controls you through common officers, directors, or trustees, or through authority to approve budgets or expenditures.
b. You and the organization were created at approximately the same time and by the same persons.
c. You and the organization operate in a coordinated manner with respect to facilities, programs, employees, or other activities.
d. Persons who exercise substantial influence over you also exercise substantial influence over the other organization.
"Legal compliance" is not necessarily 'doing what is right' ... it can be getting away with as much as is possible and using one's knowledge and abilities to work around it.
For many, the current business model is more like that of a cultic religion with Jimbo occupying the guru's throne. And, yet, one could argue that Jimbo's '5 figure a night' income goes hand in hand with Wikipedia's success (... what is the value of the founder of a failed Web 2.0 project?).
Many errors of judgement have happened ... the fancy wine, the Al Gore-style masseuses, the abuse of the company credit card, floating the for profit Wikia with board member Angela Beesley etc ... but not so many as to alert the authorities. Perhaps as with the porn, we ought to collate and document them in one place? Many leaders of NPOs do take significant wages but, surely, part of the magic of the Cult of Jimbo is that he "takes none" ... well, none off the spreadsheet anyway ... and he is just like one of us. "Some guy on the internet".
So, whilst we are addressing the ethics, isn't it time the speaking fees went into the NPO and he went 'on the books'?
*For him it might be a better deal because they wont last for ever.
One starting point might be the $6,000,000s Omidyar Network poured into both Jimmy's private Wikia and the Wikipedia resulting in a Wikimedia Foundation Board of Trustees seat going to Omidyar partner Matt Halprin.
