To ensure Alfalit operates in a manner consistent with charitable purposes, as reflected in its IRS Form 990, and does not engage in activities that could jeopardize its tax-exempt status, periodic reviews of the administration of this conflict of interest policy are conducted. The review considers the level of compliance with the policy, the continuing suitability, and whether the policy should be modified and improved. The reviews shall, at a minimum, include the following subjects:
- Whether compensation arrangements and benefits are reasonable, based on competent survey information, and the result of arm’s length bargaining.
- Whether partnerships, joint ventures, and arrangements with management organizations conform to Alfalit’s written policies, are properly recorded, reflect reasonable investment or payments for goods and services, further charitable purposes, and do not result in inurement, impermissible private benefit, or in an excess benefit transaction.
- When conducting the periodic reviews, Alfalit may, but is not required, to use outside advisors. If outside advisors are used, their use shall not relieve the governing body of its responsibility for ensuring periodic reviews are conducted.