Examines the case of Stern v. Sibley Memorial Hospital, in which hospital patients alleged trustees conspired to enrich themselves and financial institutions with which they were affiliated by favoring them in hospital financial dealings. Discusses two statutory approaches, those of the Revised Model Nonprofit Corporation Act and the Revised Model…

Current approaches used by private colleges and universities to manage trustee conflicts of interest are analyzed, and recommendations are made for developing appropriate trustee conflict-of-interest policies. Many of these institutions have not expressly adopted adequate policies that procedurally and substantively address the problem, despite…

The potential for conflict of interest in college and university trustees is high. A 1974 court decision (Stern vs. Sibley Memorial Hospital) established guidelines for trustees of nonprofit organizations, and a survey of 566 colleges and universities reveals how institutions are managing such conflicts through policy statements and…