Conflict of Interest Policy (CIO)

Conflict of Interest Policy for a Charitable Incorporated Organisation

CO.CHA.41

This Conflict of Interest Policy for a Charitable Incorporated Organisation is one of two conflict of interest policies for a charity in this subfolder. (The other policy, for use where the legal form of the charity is a company limited by guarantee, is the Conflict of Interest Policy for a Charitable Company Limited By Guarantee). 

Conflicts of interest affect charities of all types and sizes. Such conflicts can give rise to trustee board decisions which are against the charity’s best interests, or which have an adverse impact on its reputation, public trust or confidence in it. Decisions which are affected by a conflict of interests can be legally invalid and/or challengeable. However, where individual trustees identify conflicts of interest, the trustee board can prevent its decisions from causing such harm to the charity. The Charity Commission expects trustees to identify and deal with such conflicts in certain ways to ensure that decisions are only made in a charity’s best interests. Failure to act properly where there is a conflict of interest is a breach of the trustees’ legal responsibilities.

We recommend that, as good practice, a trustee board should adopt a written conflict of interest policy as a tool to assist in ensuring that the trustees act in the charity’s best interests. The Commission encourages the adoption and use of a conflict of interest policy by charities.

This form of policy can be adapted to meet the particular needs and circumstances of your charity as necessary to help ensure that decisions are not adversely affected by a trustee’s conflict of interest.

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