One of our major donors is the brother of a salaried staff member. This donor is interested in becoming a board member. If he recuses himself from discussions and votes that pertain to his sibling's compensation and job performance, is there any reason she he cannot become a board member?
I think you have a legal question that’s also an ethical one, and poses practical problems as well. I would refer you to counsel who can advise on the legalities. My sense is that taking oneself out of decisions affecting the sibling might observe the letter of the law. But look at the problems it could create for staff members and the organization as a whole.
It’s tough enough that a major donor has a sibling in the management of the nonprofit. Questions could be raised about whether actions by the management person are affected by the donor’s desires, whether the siblings are exchanging information about the organization that’s not appropriate, and whether the situation is having a chilling affect on the rest of the staff. If the donor joins the board, it would only be more of an issue. And besides the actual conflict, there is the perception that something untoward could be happening.
That could compromise the organization’s effectiveness internally, but the bigger risk is the public's perception. Donors, the media, and people using the nonprofit’s services may lose confidence in it, even if the siblings and everyone else involved acts responsibly.
I don’t see an upside to this. While preventing him from joing the board may unnecessarily limit the donor’s opportunity to serve the nonprofit, it’s a small sacrifice compared to the problems it might cause.
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