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They are volunteers, too!
Look here for information and the latest techniques to develop your board or committee. The purpose is to help those who work or serve on nonprofit boards of directors or committees.

~March 2011~


A Board of Directors needs policies on conflicts of interest.  Board members, officers and senior staff need to be vigilant to monitor any hint of an ethical breach caused by a conflict of interest.  Perception is everything in this day of instant information.  The best way to prevent a conflict of interest by a member of the board starts with training.   Outline those situations that can cause a conflict of interest.  Be sure all Board members review them on a regular schedule.

Situations when personal interests my conflict with interests of the nonprofit corporation:

  • You are a person who solicits bids, contracts, or supplies goods or services to the organization; or you have a financial interest in a company that does so.
  • You are someone who has an interest in real estate, securities, or property the organization is considering buying or leasing.
  • You use “insider” information learned from you duties as a Board member to benefit personally or professionally.
  • You are a person that from whom the organization intends to buy or lease real property, securities, or other property.  Having an interest in a company or organization that intends to do so is also a conflict of interest.
  • You accept gifts, unsecured loans, or gratuities from any individual or group that engages in transactions with the organization
  • You have a financial interest as creditor of person or company that is engaging in transactions with the organization.
  • You have an ownership interest, are employed by, or are an officer or director of any other organization that competes with or affects the operations of the nonprofit.
  • You are a person from whom or to whom the organization leases property or equipment, or you have a financial interest in one that does.
  • You are an officer, member of Board or Trustees, are employed by a person or company that engages in transactions with the organization.

Indirect Situations Causing Conflicts of Interest

  • Any relatives, by blood or marriage, that have a financial interest in or are employed by the organization.

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