<html><head><meta http-equiv="Content-Type" content="text/html; charset=utf-8"></head><body style="word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class=""><div dir="auto" style="word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class=""><div dir="auto" style="word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class="">Good morning Sheri,<div class=""><br class=""></div><div class="">Thank you for your reply to my email. I’ll take a closer look at the Oregon Nonprofit Corporation Handbook with regard to governance. Meanwhile, would you remind how to send out an email on listserv? I have done it before and in my email addresses I have <a href="mailto:omg_managers-request@listmart.osl.state.or.us" class="">omg_managers-request@listmart.osl.state.or.us</a>; but, I am thinking this is just for you. <br class=""><div><br class=""></div><div><br class=""></div><div><br class=""></div><div><br class=""><blockquote type="cite" class=""><div class="">On May 6, 2019, at 2:00 PM, STUART Sheri * OPRD via OMS_MANAGERS <<a href="mailto:oms_managers@listsmart.osl.state.or.us" class="">oms_managers@listsmart.osl.state.or.us</a>> wrote:</div><br class="Apple-interchange-newline"><div class=""><div class="WordSection1" style="page: WordSection1; caret-color: rgb(0, 0, 0); font-family: Helvetica; font-size: 14px; font-style: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration: none;"><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);" class="">Hi Suzanne,<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);" class=""><o:p class=""> </o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);" class="">I think organizations used to have a clause like this in the bylaws before having a conflict of interest policy became standard operating procedures. I am not legal counsel so you might want to get that advice. I did check The Oregon Nonprofit Corporation Handbook and it wasn’t the type of clause they include in their sample. In the handbook, they separate out the two functions of the board – to manage corporate “governance” and to manage corporate “operations.” They recommend bylaws focus on “governance” and leave “management” to the board and administrative policies. That means the bylaws should include how the board functions (how it is selected, how it makes valid decisions, etc., and, with membership organizations, who is a voting member, how members make proper decisions, and what voting rights members have).<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);" class=""><o:p class=""> </o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);" class="">The other area where compensation might arise is when you applied for 501c3 status. There is a question about compensation of Directors. That’s a little bit different than the question you are posing.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);" class=""><o:p class=""> </o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);" class="">Sheri<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);" class=""><o:p class=""> </o:p></span></div><div class=""><div style="border-style: solid none none; border-top-width: 1pt; border-top-color: rgb(181, 196, 223); padding: 3pt 0in 0in;" class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><b class=""><span style="font-size: 10pt; font-family: Tahoma, sans-serif;" class="">From:</span></b><span style="font-size: 10pt; font-family: Tahoma, sans-serif;" class=""><span class="Apple-converted-space"> </span>OMS_MANAGERS [<a href="mailto:oms_managers-bounces@listsmart.osl.state.or.us" class="">mailto:oms_managers-bounces@listsmart.osl.state.or.us</a>]<span class="Apple-converted-space"> </span><b class="">On Behalf Of<span class="Apple-converted-space"> </span></b>Suzanne Wolf<br class=""><b class="">Sent:</b><span class="Apple-converted-space"> </span>Tuesday, April 30, 2019 5:28 PM<br class=""><b class="">To:</b><span class="Apple-converted-space"> </span>STUART Sheri * OPRD via OMS_MANAGERS<br class=""><b class="">Subject:</b><span class="Apple-converted-space"> </span>[OMS_MANAGERS] Bylaw Verbiage<o:p class=""></o:p></span></div></div></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><o:p class=""> </o:p></div><div class=""><div class=""><div class=""><div class=""><div class=""><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-size: 13.5pt;" class="">Hello everyone!</span><o:p class=""></o:p></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="" class=""><o:p class=""> </o:p></span></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-size: 13.5pt;" class="">Our Board is currently reviewing our bylaws and would appreciate your feedback regarding verbiage about our investment powers.</span><span style="" class=""><o:p class=""></o:p></span></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="" class=""><o:p class=""> </o:p></span></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-size: 13.5pt;" class="">In our bylaws, Article IV; B states, “HDOG may invest either monetary or service assets for the furtherance of HDOG. No portion of the assets, either monetary or service, will be used for the benefit of any HDOG personnel or affiliate for personal gains.” </span><span style="" class=""><o:p class=""></o:p></span></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="" class=""><o:p class=""> </o:p></span></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-size: 13.5pt;" class="">A discussion occurred about the second sentence. In the event of a conflict of interest, does the language of our bylaws reflect a transaction (regarding the organization’s funds and activities) that clearly is in the best interest of the charity rather than private interest? Should the second sentence be omitted? In other words, under certain circumstances (for example; monies from a grant), conflict situations are acceptable in which a charitable organization’s personnel and affiliates who are business/property owners do privately benefit. Should a subsection of this article be added that specifically addresses Board members who are business/property owners? If so, any suggestions? Is the action of recusing one’s self from discussing and voting on such matters the only option for Board members who are business/property owners? </span><span style="" class=""><o:p class=""></o:p></span></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="" class=""><o:p class=""> </o:p></span></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-size: 13.5pt;" class="">Thank you for your consideration!</span><span style="" class=""><o:p class=""></o:p></span></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="" class=""><o:p class=""> </o:p></span></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-size: 13.5pt;" class="">Suzanne Wolf, Secretary</span><span style="" class=""><o:p class=""></o:p></span></div></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman", serif;" class=""><span style="font-size: 13.5pt;" class="">Historic Downtown Oak Grove (HDOG) </span></div></div></div></div></div></div></div></div></div></div></blockquote></div><br class=""></div></div></div></body></html>