Conflict of Interest Policy (Not For Profit)
This Conflict of Interest Policy helps charities manage any conflicts of interests their board members may have.
5.0 (1 reviews)
Last updated December 19, 2024
Under 10 minutes
Suitable for Australia
Written by
Edwin Montoya Zorrilla
Reviewed by
Damin Murdock
Document Overview
This policy helps charities manage any conflicts of interests their board members may have. It outlines a process for disclosing conflict of interests so that the integrity of the charity is maintained. This policy also helps to ensure compliance with Governance Standard 5 as set by the Australian Charities and Not-for-profits Commission.
This policy was adapted from the website of the Australian Charities and Not-for-profits Commission.
The Legal Risk Score of a Conflict of Interest Policy (Not For Profit) Template
Our legal team have marked this document as low risk considering:
- There is a risk that board members may not fully understand or adhere to the requirements for identifying and disclosing conflicts of interest, which could undermine the operational integrity of the charity.
- The policy relies on the subjective judgment of board members to manage conflicts adequately, which could lead to inconsistent handling of similar situations.
- The document does not specify detailed penalties for non-compliance, which might result in inadequate enforcement of the policy.
Conflict of Interest Policy (Not For Profit) Checklist
Complete your free Conflict of Interest Policy (Not For Profit) with our checklist
Ensure Awareness and Understanding
All board members must be thoroughly familiarized with the conflict of interest policy to ensure they understand their responsibilities and the importance of compliance.
Regular Monitoring and Compliance Checks
The board should implement a routine system to monitor compliance with the policy and ensure that conflicts of interest are being disclosed and managed appropriately.
Annual Review of the Policy
Annually review the conflict of interest policy to assess its effectiveness and make necessary adjustments to address any new challenges or gaps in the policy.
Maintain and Update the Register of Interests
Keep the register of interests up-to-date with all disclosed conflicts, and ensure it includes detailed information regarding the nature and extent of the conflicts and any actions taken to manage them.
Use this Policy if:
- You need to create a process for disclosure of any conflicts of interest your board members may have;
- You want to ensure that board members are aware of their obligations regarding any conflict of interest;
- Your charity needs clarity on how to record and monitor any disclosed conflicts of interest;
- You want to clarify what constitutes a conflict of interest;
- You would like to communicate how any disclosed conflicts of interest are managed, and establish relevant sanctions for a breach;
- You seek to comply with obligations placed on responsible persons governing a charity by the Australian Charities and Not-for-profits Commission.
What does this Policy cover?
- Clarification of what constitutes a conflict of interest;
- Establishes the board’s responsibility to manage conflicts of interest;
- The process for identifying and declaring any conflict of interest;
- Confidentiality of disclosures;
- The actions required to manage conflicts of interest once disclosed, and the relevant factors to consider when deciding what action to take;
- Actions for breach of the policy.
Further information:
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