06/10/2026
Conflict of Interest Policy for Not-for-Profits
A strong Conflict of Interest Policy is essential for not-for-profits because conflicts often arise in ordinary, legitimate situations — engaging a board member’s business, recruiting a relative, considering a donor request, or partnering with a familiar organisation.
The issue is not necessarily the existence of a conflict. The real governance risk arises when personal, financial or professional interests are not properly disclosed, recorded and managed.
A practical policy should clearly define actual, potential and perceived conflicts, set expectations for disclosure, maintain an up-to-date register of interests, and explain how conflicted individuals should participate in discussions and decisions.
It should also address gifts, benefits, hospitality, recruitment, procurement and situations where conflicts may affect quorum or decision-making.
Importantly, good governance goes beyond having a written policy. Boards and leadership teams should create a culture where disclosure is normal, transparent and encouraged. Meeting declarations, clear minutes, documented selection processes and regular policy reviews all help demonstrate that decisions are made in the organisation’s best interests.
For not-for-profits, effective conflict management protects more than compliance. It strengthens trust with funders, staff, members, volunteers and the communities they serve.
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