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Managing con icts of interest
HOW DO YOU IDENTIFY CONFLICTS OF INTEREST?
The Charity Commission de nes a con ict of interest as:
“...any situation in which a trustee’s personal interests or loyalties could, or could be seen to, prevent them from making a decision only in the best interests of the charity”
(Con icts of Interest: a guide for charity trustees: Charity Commission (May 2014)
https://www.gov.uk/government/publications/con icts-of-interest-a-guide-for- charity-trustees-cc29/con icts-of-interest-a-guide-for-charity-trustees
Con ict may take many forms:
(a) Direct nancial gain to a trustee. For example where a trustee wishes to leave a religious institute and the board are being asked to agree on any parting gift
(b) Indirect nancial gain. For example where a trustee’s brother approached the charity he/she was a trustee of asking for a grant
(c) Other material bene t, direct or indirect. For example where the trustees are setting the level of funds to be spent on improving the house a trustee is living in; or the charity provides services to a person connected to
a trustee
(d) Con ict of loyalties or responsibilities. For example where a trustee is also a trustee of another charity which is applying for funding to the
rst charity. While giving the funding may be within the objects of both charities and bene cial, the trustee who sits on both boards cannot be (or at the very least cannot be seen to be) impartial
In any of these situations if the con icted trustee stays in the decision making process and the funds are granted, then the decision is open to criticism for bias or favouritism and direct or indirect personal bene t to the trustee (even if the
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