Conflicts of Interest Policy

A Conflicts of Interest Policy helps create a culture of honesty within a non-profit organization by preventing its board of directors from personally benefiting from their service.

All non-profit entities and charities have one goal in common – to help others. Whether it's to improve the quality of life for a specific community or raise funds for a school, assisting is the critical element.

Unlike businesses and corporations, private and financial gain isn't and shouldn't be the goal. However, people with executive positions in non-profit organizations are typically busy people. And, as such, they may sometimes overlook specific conflicts of interest they may have in their roles.

These conflicted roles needn't be nefarious, and you can easily manage them if they're talked about openly. Furthermore, disclose any potential conflicts of interest in an official document called a Conflict of Interest Policy.

What Is a Conflicts of Interest Policy?

Even if a director or someone in a position of authority at a non-profit organization doesn't have a specific conflict of interest, they should sign the policy regardless.

They can simply state that a conflict of interest doesn't exist. On the other hand, this type of policy allows people in power to be fair and open about any possible conflicts.

But it's also mandatory for the non-profit organization leaders to abide by Duty of Loyalty, which describes their obligation to act in the organization's best interest.

On top of that, as a tax-exempt entity, every non-profit organization is required to submit an IRS 990 Form. The form acknowledges that the organization's board of directors signed Conflicts of Interest Policies.

Other Names for Conflicts of Interest Policy

Depending on your state, you may also know a Conflicts of Interest Policy as:

• Charity Conflicts of Interest Policy
• Conflicts of Interest in the Non-Profit Entity
• Conflicts of Interest Disclosure Form
• Non-Profit Conflicts of Interest Policy

Who Needs a Conflicts of Interest Policy?

Essentially, every non-profit entity that is considered tax-exempt is required to create Conflicts of Interest Policies.

There are many types of non-profit organizations such as unions, religious institutions, social welfare organizations, recreational clubs, teacher associations, veterans' organizations, and similar.

Why Use Swyftfilings for Your Conflicts of Interest Policy

Customized for you, by you

Create your own documents by answering our easy-to-understand questionnaires to get exactly what you need out of your Conflicts of Interest Policy.

Specific to Your Jurisdiction

Laws vary by location. Each document on Swyftfilings is customized for your state.

How to Create a Conflicts of Interest Policy

A Conflicts of Interest Policy form isn't a complicated document. But it needs to contain important details regarding potential conflicts of interest by directors of the board.

You must have a clear purpose of the policy and clearly define what conflict of interest is within an organization. We can make this process easy for you.

Let Swyftfilings help with our extensive library of attorney-vetted legal forms. The process is fast and easy. All you have to do is fill out our easy-to-understand questionnaire. Once complete, simply download your form as a PDF or Word document from your secure online account.

What Information Will I Need to Create My Conflicts of Interest Policy?

To create your document, please provide:

• Name of the Organization: The official name of the non-profit organization
• Purpose: A short explanation of why the COI policy is necessary
• Definition: What constitutes a conflict of interest within the organization
• Policy Practices: A list of most common conflicts of interest within the organization
• Specified Conflict: An additional space for a specific conflict
• Violations: A detailed description of a particular event
• Signature: Director's name and signature
• Date: The exact date of signing

Conflicts of Interest Policy Terms

• Non-Profit: A type of institution that operates for the benefit of public or social benefit
• Fiduciary Duty: A legal obligation to act in the best interest of another person
• Board of Directors: A type of decision-making committee that supervises activities in a non-profit
• IRS 990 Form: A type of IRS tax form for organizations exempt from income tax
• Nepotism: A practice of favoring relatives and friends by those in power by giving them positions
• Self-Dealing: Taking advantage of your job, breaking fiduciary duty
• Meeting Minutes: Formal notes made during a board of director's meeting
• Tax-Exempt: Some or all transactions in an entity are not subject to federal, state, or local tax
• Inurement: Inappropriate use of assets, usually for personal gain, within an organization

Conflicts of Interest Policy Signing Requirements

Before a director or an employee of a non-profit organization signs the policy, they should take the time to review it.

Often, the document requires them to choose from the list of potential conflicts, and other times they must enter specific information. Upon reading and reviewing, they should sign the policy before a board president or the secretary.

What to Do With Your Conflicts of Interest Policy

The Conflicts of Interest Policy doesn't require notarization, and you don't have to file with a government entity.

However, it should be noted in the organizations' meeting minutes and kept on file. Both the organization and the person signing the policy should have a copy of the form.

Depending on your state, a Conflicts of Interest Policy may also be known as:

If you need to formalize agreements and ensure legal compliance, this document is an essential tool.

Create your own documents by answering our easy-to-understand questionnaires to get exactly what you need out of your Conflicts of Interest Policy.

Laws vary by location. Each document on Swyft Forms is customized for your state.