Conflict of Interest Policy Template

This Conflict of Interest Policy protects the integrity of [Organization's Name]’s decision-making process and ensures that all employees, volunteers, and board members disclose any potential conflicts of interest that may arise in their professional responsibilities.

All employees, volunteers, and board members are expected to act in the best interests of [Organization's Name]. Individuals must avoid situations where personal interests may conflict with their duty to the organization. 

This policy is intended to supplement but not replace applicable state and federal laws governing conflict of interest applicable to nonprofit and charitable organizations.

Conflict of Interest: A situation in which an individual’s personal interests could improperly influence their professional duties and decisions. 

Interested Person: Any director, principal officer, or committee member with governing board-delegated powers who has a direct or indirect financial interest, as defined below.

Financial Interest: A person has a financial interest if the person has, directly or indirectly, through business, investment, or family:

• An ownership or investment interest in any entity with which the Company has a transaction or arrangement.

• A compensation arrangement with the Company or any entity or individual with which the Company has a transaction or arrangement.

• A potential ownership or investment interest in, or compensation arrangement with, any entity or individual with which the Company is negotiating a transaction or arrangement.

Disclosure: All employees, volunteers, and board members must complete a Conflict of Interest Disclosure Form at the beginning of their service and annually thereafter. 

Review: The executive committee will review all disclosures to determine if a conflict exists and what actions, if any, must be taken. 

Resolution: In cases where a conflict is determined, the individual may be required to recuse themselves from participating in related decision-making processes.

All disclosures and discussions regarding potential conflicts of interest will remain confidential, except to the extent necessary to enforce this policy.

Violations of this policy may result in disciplinary action, including termination of employment or volunteer status.

By signing below, I acknowledge that I have read and understand the Conflict of Interest Policy and agree to adhere to its terms.

Signature: ______________________ Date: ______________________

What is a conflict of interest?

A conflict of interest occurs when an individual’s personal interests could compromise their professional duties and decisions, potentially affecting the organization's integrity.

Why is a Conflict of Interest Policy important?

This policy is crucial for maintaining the organization's transparency, accountability, and ethical compliance. It also helps safeguard the organization’s reputation by proactively addressing potential conflicts.

Who is required to complete the Conflict of Interest Disclosure Form?

All employees, volunteers, and board members must complete the form at the start of their service and annually thereafter to ensure ongoing compliance with the policy.

What happens if a conflict of interest is identified?

If a conflict is determined, the individual may need to recuse themselves from related decision-making processes to preserve the integrity of the organization’s operations.

Is the information disclosed in the Conflict of Interest Disclosure Form confidential?

Yes, all disclosures and discussions regarding potential conflicts of interest will remain confidential, except as needed to enforce this policy.