Nonprofit Conflict Of Interest Policy Template

This conflict of interest policy is designed to help directors officers and employees of the organization name identify situations that present potential conflicts of interest and to provide organization name with a procedure that if observed will allow a transaction to be treated as valid and binding even though a director officer or.

Nonprofit conflict of interest policy template. Conflicts of interest frequently arise when setting compensation or benefits for officers directors or trustees. To have the most impact the policy should be in writing and the board and staff should review the policy regularly. Conflict of interest template for nonprofit boards. A conflict of interest policy is intended to help ensure that when actual or potential conflicts of interest arise the organization has a process in place under which the affected individual will advise the governing body about all the relevant facts concerning the situation.

It encourages nonprofit boards to put their conflict of interest policies in writing and to review the policies regularly. A financial interest is not necessarily a conflict of interest. The national council of nonprofits deems the conflict of interest policy one of the most important policies that nonprofit organizations develop. Conflict of interest policy for non profit organizations a conflict of interest is defined as an actual or perceived interest by a staff or board member in an action that results in or has the appearance of resulting in personal organizational or professional gain.

A policy governing conflicts of interests is perhaps the most important policy a nonprofit board can adopt. Under article iii section 2 a person who has a financial interest may have a conflict of interest only if the appropriate governing board or committee decides that a conflict of interest exists. Establishing a strong conflict of interest policy is particularly important for nonprofits. You can also use conflict of interest policy template charity if you run an entire charity organization.

Of interest have the potential to jeopardize a nonprofits tax exempt status and damage its reputation with donors. The sole purpose of a nonprofit conflict of interest policy is to protect the 501c3 tax exempt nonprofits from conducting inappropriate business or make arrangements with its officers directors trustees persons of interest or anyone who would benefit directly or indirectly from public funds of the nonprofit organization. However sometimes those involved in the organization can use their influence to earn a personal profit at the cost of the charitable organization. This tool contains sample elements that can be used in the creation of a policy to address potential conflicts of interest with employees and board members.

As with any policy of this nature the nfp may wish to consult legal counsel for assistance in developing a conflict of interest policy that is appropriate for the organization. Article iii procedures 1.