A policy governing conflicts of interest is perhaps the most important policy a noonprofit board can adopt. To have the most impact, the policy should be in writing, and the board and staff should reveiw the policy regularly.
A policy on conflicts of interest should (a) require those with a conflict (or who think they may have a conflict) to disclose the conflict/potential conflict, and (b) prohibit interested board members from voting on any matter in which there is a conflict.
Additional Resources
- Sample Conflicts of Interest Policies for small nonprofits and large nonprofits (Nonprofit New York)
- Sample Conflict of Interest Policy and Annual Statement (Montana Nonprofit Association)
- Sample conflict of interest policy (Public Counsel Law Center)
- IRS statement on the purpose of a conflict of interest policy (IRS)