Managing Conflicts of Interest: A Primer for Nonprofit Boards
BoardSource
March 1, 2006
The key for nonprofit boards is not to try to avoid all possible conflict-of-interest situations, but to identify and follow a process for handling them effectively. How an organization manages conflicts of interest and assures open and honest deliberation affects all aspects of its operations and is critical to making good decisions, avoiding legal problems and public scandals, and remaining focused on the organization’s mission.
Help promote a culture of disclosure in your nonprofit by exploring the meaning of conflicts of interest and understanding the legal rules relating to them. “Managing Conflicts of Interest: A Primer for Nonprofit Boards,” acknowledges the difficulty in identifying problematic conflicts of interest, and gives recommendations for practice. This new edition discusses:
- The most recent state and federal laws governing conflicts of interest
- Important legal concepts, including private inurement, private benefit, and intermediate sanctions
- Situations that give rise to conflicts of interest
- Creation of a conflict-of-interest policy and the requirement for proper disclosure
- Establishing a procedure for responding to existing conflicts
- Organizational code of ethics and maintaining an overall culture of integrity
- Special considerations for private foundations in dealing with conflicts of interest
“Managing Conflicts of Interest: A Primer for Nonprofit Boards” is available for purchase at http://www.boardsource.org/Bookstore.asp?Item=182 or by calling 800-883-6262.