Louisville AI Center

Conflict of Interest Policy

Last updated November 1, 2026

1. Purpose

This policy protects LAIC's interests when it considers a transaction or arrangement that might benefit a board member, officer or key staff member. It supplements, and does not replace, Kentucky law on nonprofit organizations and conflicts of interest.

2. Definitions

  • Interested person: any director, officer, member of a board committee, the executive director, or key staff member who has a direct or indirect financial interest.
  • Financial interest: a person has one if they, or a family member or business they are part of, have (a) an ownership or investment interest in, or a compensation arrangement with, an entity LAIC transacts with; or (b) a potential interest in, or compensation arrangement with, an entity LAIC is negotiating with. Compensation includes direct and indirect pay, and gifts or favors that are not insubstantial.
  • Family member: a spouse or domestic partner, parents, children, siblings and their spouses.

A financial interest is not automatically a conflict. The board decides whether a conflict exists.

3. Procedures

  1. Duty to disclose. An interested person must disclose the financial interest and all material facts to the board or committee considering the matter, as soon as they become aware of it.
  2. Deciding whether a conflict exists. After disclosure and any discussion, the interested person leaves the meeting while the remaining members decide whether a conflict exists.
  3. Addressing the conflict. The interested person may present information but does not take part in deliberation or vote on the matter. The chair may appoint a disinterested person or committee to look into alternatives. The board may approve the arrangement only by a majority vote of disinterested members present, after finding it is fair, reasonable and in LAIC's best interest.
  4. Violations. If the board believes a member failed to disclose a conflict, it will tell the member and give them a chance to explain. If a violation is found, the board will take appropriate corrective action.

4. LAIC-specific situations

  • Listings and events. Board members' organizations may be listed on the site and their events promoted, under the same standards as everyone else. A board member doesn't decide on listings for their own organization.
  • Partner Alliance and sponsorships. Board members disclose any interest in an organization seeking Partner Alliance membership, sponsorship or a contract with LAIC.
  • Speaking and referrals. Board members disclose when LAIC introductions, referrals or speaking opportunities would benefit them or their employer.
  • Vendors. Board members don't take part in choosing vendors, consultants or AI tools for LAIC if they have a financial interest in them.
  • Gifts. Board members and staff don't accept gifts worth more than $100 from anyone seeking business with LAIC.

5. Records

Minutes record who disclosed an interest, the board's decision on whether a conflict existed, who was present for the discussion and vote, any alternatives considered, and the vote.

6. Compensation

A voting member who receives compensation from LAIC, directly or indirectly, may not vote on matters about that compensation.

7. Annual statements

Each director, officer and committee member signs a statement each year confirming they received, read and agree to follow this policy, and listing their current affiliations and financial interests.

8. Periodic reviews

To keep LAIC's tax-exempt status, the board will periodically review compensation arrangements and partnerships with outside organizations to confirm they are reasonable, serve LAIC's charitable purposes and don't result in private benefit.