Conflict of Interest Policy

Will this be on the test?

Actually, yes. Not only are policies regarding conflicts of interest and their disclosure good for the apostolate, the existence of the conflict of interest policy and the management of any conflicts are disclosed in the IRS form 990. The IRS has the ability to sanction organizations which do not manage their conflicts properly along with the party who benefits from the conflict. Furthermore, some states have their own additional requirements with regard to non profit entities and conflicts of interest. The requirement to disclose conflicts extends to board members and staff. Conflicts should be disclosed in writing. If a conflict happens to be disclosed verbally, such as at a board meeting, a written record should subsequently be generated such as in the minutes.

Things to Consider

The Conflict of Interest Policy needs not be particularly long or cumbersome. A page should do in most cases. Similarly, the disclosure form may be very simple and easy to understand. And of course, there are examples being provided for perusal and to use as a template. Also, don’t forget to stay up to date on policies in your state. New York, for example has very specific requirements for the Conflict of Interest policy and implementation.