Serving on a Not-for-Profit Organization Board: Question: I am - TopicsExpress

Serving on a Not-for-Profit Organization Board: Question: I am on the board of directors and am treasurer of a not for profit organization. One of the board members is an officer of a commercial bank where we have our accounts. The organization wants to get a one-year CD with some excess funds they have. It turns out that the interest rate is less than half of what we could get from a local savings bank. I suggested that we open the CD in the savings bank and the bank officer got very agitated and threatened to cut off the bank’s support of the organization if we did not keep the funds in his bank. The bank is a substantial contributor to the organization, and I backed down. Was I right? Response: Yes. You need to look at the totality of the relationship. The amount contributed far offsets the lower interest you are earning. I would have a notation made in the minutes to this effect. cpaclick/134ws2f

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