I'm with JHB on this one.
We have a conflict of interest policy written into our bylaws. That doesn't mean we can't use a parent. It means it must be disclosed to our board by that parent before we work with them.
If you are in a larger community and have several options and want to stay away from your parent's business, I guess that's fine. I'm on the other side of that issue though. If you have have a parent who is willing to give part of their profit to you, why not work with them, promote their business and help your budget as well?
As long as you know they aren't "upping" the price for your group any different than pricing for any other group, is there an issue? If they owned the only stating rink in the area and other elementaries were able to have skate parties and it was well run, would you not put something together simply because it was a parent at your school who owned the business? Many times the parent gives your group an even better deal because they have children at that school.
What we do is make sure that parent is NOT chairing/running the event. What we do is have that parent represent the business as the vendor. If they are a member of our PTO, they abstain on motions which involve payment/cost dealings for the event.
We want to be able to promote our school family. What better way than to use their facilities and business when possible?
If you would like to see our Conflict of Interest policy, visit (on page 7)
www.orgsites.com/mi/lcepto/ByLawsPortageLakeCenter.doc