UK Charity Conflict Of Interest Policy Template & Charity Commission Trustee Guidance

UK charity conflict of interest policy template - Charity Commission trustee guidance and including a register declaration form

UK Charity Trustee Conflict of Interest Policy Template

This UK charity conflict of interest policy template is based on Charity Commission guidance to trustees, with links to other related Charity Commission and Charity Excellence resources.  You can download the full conflict of interest policy template in Word from within the system.

Free Online Charity Trustee Governance Health Check

The in-system AI Bunny can download this charity conflict of interest policy template in Word format and also 40 other charity policy templates.  Register (everything is free), then login and click the in-system AI bunny icon in the bottom right of your screen. Ask it to hop off and get you the conflict of interest policy template then select the downloads option. If you think that's quite clever it can also write funding bids for you.

To access help and resources on anything to do with running a charity, including funding, click the in-system AI Bunny icon or the one in the bottom right of your screen and ask it short questions, including key words.  The website bunny can't download policies.

Health check your governance online in 30 mins, with access to a huge range of charity governance resources.  A one-stop shop for everything – quick, simple and it’s free! Three directories that find grant funding, donations and free help, and 60+downloadable funder lists.

Quick, simple and very effective. Nearly half our ratings are 10/10.

Find Funding, Free Help & Resources - Everything Is Free.

Register Now!

Charity Trustee Conflict Of Interest Declaration Form

There is no regulatory requirement to have a trustee conflict of interest declaration form and it's more usual to ask about any conflicts of interest at the beginning of trustee meetings and record these in the minutes.   If you do wish to have one, I'd suggest trustees include all actual, potential or apparent conflicts of interest, with agreement to advise of any changes.  Entries should record the other entity/person, its/their relationship to the charity trustee and what the conflict is, or might be.

Charity Commission Conflict of Interest Policy - Trustee Guidance

The Charity Commission policy guidance identifies 2 common types of conflict of interest: financial conflicts and loyalty conflicts.  It requires charity trustees to follow its 3 step approach:

  • Identify a conflict of interest.
  • Deal with a conflict of interest.
  • Record a conflict of interest.

The sample policy below, explains the Commission's guidance and provides a template to create your own.

Charity Commission CC3 (The Essential Trustee: What's Involved) is key guidance that all charity trustees must be aware of.  Trustees have 6 main responsibilities. The key one in managing conflicts of interest is the requirement to act in your charity's best interests, because you can't, if you have a conflict.

Your integrity may be such that you potentially could, but charity trustees must not only always act in their charity's best interest, but also be seen to do so.  Consequently, you must always manage and record any conflicts of interest.

CHARITY CONFLICT OF INTEREST POLICY TEMPLATE

You can copy and amend this conflict of interest policy template to meet the requirements of your own charity.

Trustee Conflict of Interest

The trustee board will make decisions based only on what’s best for the charity.  We do not allow personal interests, or the interests of people or organisations connected to board members, to influence these decisions.

There are 2 common types of conflict of interest:

  • Financial conflicts - when a trustee, or person or organisation connected to them, could get money or something else of value from a trustee decision. This does not include the payment of expenses.
  • Loyalty conflicts - other reasons, a board member might not be able to make decisions that are best for the charity.

Generally, a potential conflict of interest will occur when a board member has a connection to another organisation or person that we have a financial, or other working arrangement with, either as:

  • Family – his or her partner, child etc or:
  • Organisation – as a trustee, board member, member of staff or similar.

Identifying Trustee Conflicts Of Interest

Conflict of interest is a standing item on all trustee board and committee agendas; the chairman will remind trustees at the start of each meeting that any interests must be declared.

A record of any professional or personal interest that may make it difficult for a trustee to fulfil their duties impartially, or may create an appearance of impropriety, with any item on the agenda for that day’s meeting is to be noted in the minutes of the meeting.  Specifically:

  • If a trustee is in any way, directly or indirectly, interested in a proposed transaction or arrangement with the organisation, s/he must declare the nature and extent of that interest to the other trustees
  • If a declaration of interest proves to be or becomes inaccurate or incomplete, a further declaration must be made
  • Any required declaration of interest must be made before the charity enters into the transaction or arrangement
  • A declaration is not required in relation to an interest of which the trustee is not aware or where the trustee is not aware of the transaction or arrangement in question. For this purpose a trustee is treated as being aware of matters of which s/he ought reasonably to be aware.

If a trustee states a conflict of interest s/he will normally be requested to leave the meeting while the relevant agenda item is discussed.

Potential Trustee Conflict of Interest

A charity may pay and offer other material benefits, to one or more of its trustees to provide services to the charity, where the trustee board reasonably believes it to be in the charity’s best interests to do so.  The services in question must be ones which the charity trustee provides in addition to carrying out normal trustee duties.  Any such proposal would be treated on a case for case basis and would only be approved subject to compliance with the Articles of Association and Charity Commission guidance.

Where an individual is not part of the decision making process, there is no direct conflict of interest.  However, where he/she has a relationship with the organisation, or individual trustee/director, the perception could arise that the trustees haven’t acted in the organisation’s best interests, because of this.

Managing Trustee Conflict of Interest

To manage these issues, the Board will ask themselves these kinds of questions:

  • Is this the best use we might make of our limited resources?
  • If so, might anyone else be able to provide this service?
  • If there are others, in terms of cost, quality, availability etc, who would be the best provider?

Recording Charity Trustee Decisions

Conflicts of interest will be recorded in the minutes, together with the key points and decision(s) made, in sufficient detail to enable a reader to understand the issue and the basis on which the decision was made.

OTHER RESOURCES & GUIDANCE

Here are related Charity Commission and other resources.

Charity Commission Conflict Of Interest Guidance For Trustees

For an introduction to managing charity conflicts of interest, click here for a simple explanation and video.

Or for the detailed Charity Commission trustee guidance - Conflicts of interest: a guide for charity trustees (CC29).

Related Charity Commission policy:

Access All The Free Charity Trustee Resources

  • Funding Finder - with categories for Core Funding and Small Charities & Community Groups.
  • Help Finder – including companies that make donations.
  • Data Finder – find information, data and statistics on charities and fundraising.

Plus, 60+downloadable funder lists, 8 online health checks and the huge resource base.

Quick, simple and very effective. Nearly half our ratings are 10/10.

Find Funding, Free Help & Resources - Everything Is Free.

Register Now!

To access help and resources on anything to do with running a charity, including funding, click the AI Bunny icon in the bottom right of your screen and ask it short questions, including key words.  Register, then login and the in-system AI Bunny is able to write funding bids and download 30+ charity policy templates as well.

This Resource Doesn't Constitute Professional Opinion

I am not an accountant, nor a lawyer and no advice can be applicable to all organisations, in all circumstances, so this resource is no more than a guide to understanding.  I've summarised the regulatory guidance and augmented this with my own experience and Internet research, but I am not competent to provide professional advice.  I have included links to the source guidance to enable you to check this yourself and, if you think you might need professional advice, use Help Finder to find pro bono support.

Register Now
We are very grateful to the organisations below for the funding and pro bono support they generously provide.

With 40,000 members, growing by 2000 a month, we are the largest and fastest growing UK charity community. How We Help Charities

View our Infographic

Charity Excellence Framework CIO

14 Blackmore Gate
Buckland
Buckinghamshire
United Kingdom
HP22 5JT
charity number: 1195568
Copyrights © 2016 - 2024 All Rights Reserved by Alumna Ltd.
Terms & ConditionsPrivacy Statement
Website by DJMWeb.co
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram