Conflict of Interest Policy

The following is the Nevada County Digital Media Center's Conflict of Interest Policy adopted June 7, 2011 in accordance with non-profit "best practices" and our IRS Form 1023 filing compliance.

 Nevada County Digital Media Center (NCDMC)


Conflict of Interest Policy
Adopted June 7, 2011

SECTION 1. PURPOSE OF CONFLICT OF INTEREST POLICY
The purpose of this conflict of interest policy is to protect this tax-exempt corporation's interest when it is contemplating entering into a transaction orarrangement that might benefit the private interest of an officer or director of the corporation or any "disqualified person" as defined in Section 4958(f)(1) of the Internal Revenue Code and as amplified by Section 53.4958-3 of the IRS Regulations and which might result in a possible "excess benefittransaction" as defined in Section 4958(c)(1)(A) of the Internal Revenue Code and as amplified by Section 53.4958 of the IRS Regulations. Thispolicy is intended to supplement but not replace any applicable state and federal laws governing conflict of interest applicable to nonprofit andcharitable organizations.

SECTION 2. DEFINITIONS

(a) Interested Person.

Any Director, principal officer, member of a committee with Board of Directors delegated powers, or any other person who is a "disqualified person" asdefined in Section 4958(f)(1) of the Internal Revenue Code and as amplified by Section 53.4958-3 of the IRS Regulations, who has a direct orindirect financial interest, as defined below, is an interested person.

(b) Financial Interest.
A person has a financial interest if the person has, directly or indirectly, through business, investment, or family:
(1) an ownership or investment interest in any entity with which the corporation has a transaction or arrangement,
(2) a compensation arrangement with the corporation or with any entity or individual with which the corporation has a transaction or arrangement,or
(3) a potential ownership or investment interest in, or compensation arrangement with, any entity or individual with which the corporation isnegotiating a transaction or arrangement.
Compensation includes direct and indirect remuneration as well as gifts or favors that are not insubstantial.
A financial interest is not necessarily a conflict of interest. Under Section 3, paragraph b, a person who has a financial interest may have a conflict ofinterest only if the appropriate governing board or committee decides that a conflict of interest exists.

SECTION 3. CONFLICT OF INTEREST PROCEDURES
(a) Duty to Disclose.
In connection with any actual or possible conflict of interest, an interested person must disclose the existence of the financial interest and be given theopportunity to disclose all material facts to the directors and members of committees with Board of Directors delegated powers considering theproposed transaction or arrangement.

(b) Determining Whether a Conflict of Interest Exists.
After disclosure of the financial interest and all material facts, and after any discussion with the interested person, he/she shall leave the governing boardor committee meeting while the determination of a conflict of interest is discussed and voted upon. The remaining Board or committee members shall decideif a conflict of interest exists.

(c) Procedures for Addressing the Conflict of Interest.
An interested person may make a presentation at the governing board or committee meeting, but after the presentation, he/she shall leave the meetingduring the discussion of, and the vote on, the transaction or arrangement involving the possible conflict of interest.
The Chairperson of the Board of Directors or committee shall, if appropriate, appoint a disinterested person or committee to investigate alternatives tothe proposed transaction or arrangement.
After exercising due diligence, the Board of Directors or committee shall determine whether the corporation can obtain with reasonable efforts a moreadvantageous transaction or arrangement from a person or entity that would not give rise to a conflict of interest.
If a more advantageous transaction or arrangement is not reasonably possible under circumstances not producing a conflict of interest, the Board ofDirectors or committee shall determine by a majority vote of the disinterested Directors whether the transaction or arrangement is in the corporation'sbest interest, for its own benefit, and whether it is fair and reasonable. In conformity with the above determination, it shall make its decisionas to whether to enter into the transaction or arrangement.

(d) Violations of the Conflicts of Interest Policy.
If the Board of Directors or a committee Chair has reasonable cause to believe a member has failed to disclose actual or possible conflicts of interest, theCorporation Chair shall inform the member of the basis for such belief and afford the member an opportunity to explain the alleged failure to disclose.
If, after hearing the member's response and after making further investigation as warranted by the circumstances, the Board of Directors or committeedetermines the member has failed to disclose an actual or possible conflict of interest, it shall take appropriate disciplinary and corrective action

Explanation of Conflict of Interest Statement Use

I. Application of Policy
This policy applies to board members, staff and certain volunteers of the Nevada County Digital Media Center (NCDMC). A volunteer is covered under thispolicy if that person has been granted significant independent decision-making authority with respect to financial or other resources of the organization.Persons covered under this policy are hereinafter referred to as “interested parties.”

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[The following document is required to be signed by all board members. Signed NCDMC Board member documents are on file.]


Disclosure Statement

Please complete the questionnaire, below, indicating any actual or potential conflicts of interest. If you answer “yes” to any of the questions, pleaseprovide a written description of the details of the specific action or transaction in the space allowed. Attach additional sheets as needed.

Financial Interests - A conflict may exist where an interested party, or a relative or business associate of an interested party, directly or indirectlybenefits or profits as a result of a decision made or transaction entered into by the organization.

Please indicate, during the past 12 months:

Has the organization contracted to purchase or lease goods,
services, or property from you, or from any of your relatives or
business associates?

If yes, please describe:

Has the organization purchased an ownership interest in
or invested in a business entity owned by you, or owned
by any of your relatives or business associates?

If yes, please describe:

Has the organization offered employment to you, or to any
of your relatives or business associates, other than a person
who was already employed by the organization?

If yes, please describe:

Have you, or have any of your relatives or business associates,
been provided with a gift, gratuity or favor, of a substantial nature,
from a person or entity which does business, or seeks to do
business, with the organization?

If yes, please describe:

Have you, or any of your relatives or business associate, been
gratuitously provided use of the facilities, property, or services
of the organization?

If yes, please describe:

[add additional examples, if any]

Other Interests - A conflict may also exist where an interested party, or a relative or business associate of an interested party, obtains a non-financialbenefit or advantage that he would not have obtained absent his/her relationship with the organization, or where his/her duty orresponsibility owed to the organization conflicts with a duty or responsibility owed to some other organization.

Please indicate if at anytime during the past 12 months:

Did you obtain preferential treatment by the organization for
yourself, or for any of your relatives or business associates?

If yes, please describe:


Did you make use of confidential information obtained from the
organization for your own benefit, or for the benefit of a relative,
business associate, or other organization?

If yes, please describe:


Did you take advantage of an opportunity, or enable a relative,
business associate or other organization to take advantage of
an opportunity, which you had reason to believe would be of
interest to the organization?

If yes, please describe:

[add additional examples, if any]

Conflict of Interest Statement
Annual Affirmation of Compliance and Disclosure Statement

I have received and carefully read the Conflict of Interest Policy for board members, staff and volunteers of the Nevada County Digital Media Center(NCDMC) and have considered not only the literal expression of the policy, but also its intent. By signing this affirmation of compliance, I hereby affirmthat I understand and agree to comply with the Conflict of Interest Policy. I further understand that NCDMC is a charitable organization and that inorder to maintain its federal tax exemption it must engage primarily in activities which accomplish one or more of its tax-exempt purposes.

Except as otherwise indicated in the Disclosure Statement and attachments, if any, below, I hereby state that I do not, to the best of my knowledge, haveany conflict of interest that may be seen as competing with the interests of NCDMC, nor does any relative or business associate have such an actualor potential conflict of interest.

If any situation should arise in the future which I think may involve me in a conflict of interest, I will promptly and fully disclose the circumstances to thePresident of the Board of Directors of NCDMC or to the Executive Director, as applicable.

I further certify that the information set forth in the Disclosure Statement and attachments, if any, is true and correct to the best of my knowledge,information and belief.


Name (Please print)


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