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Conflict of Interest (Charity Trustees)

September 2017

New Charity Conflict of Interest Policies

Our Charity Start-up Documents subfolder (in the Charity & Non-Profits Group) now includes our Conflict of Interest Policy for a Charitable Company Limited by Guarantee and our Conflict of Interest Policy for a Charitable Incorporated Organisation.

Consequences of Failing to Declare and Deal Properly with a Conflict of Interests

Where there is a conflict of interests which has not been properly managed, that will be a breach of the trustees’ legal responsibilities, and a trustee board decision made against that background could be contrary to the charity’s best interests or could impact negatively on its reputation, public trust or confidence in it. Such a decision could be legally invalid and/or challengeable.

Benefit of Adopting a Conflict of Interest Policy

Whatever the size or nature of a charity – local or national, complex or not, with a small or large income - it is recommended to adopt a written conflict of interest policy. Implementing such a policy helps its trustee board ensure that any trustee conflict of interest does not give rise to a board decision which is against the charity’s best interests or which has any other negative impact on the charity. The Charity Commission therefore recognizes that it is good practice for all charities to adopt and use a conflict of interest policy.

The contents of this Newsletter are for reference purposes only and do not constitute legal advice. Independent legal advice should be sought in relation to any specific legal matter.

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