Sample Organization Conflict of Interest Policy*

* This is a sample Conflict of Interest Policy for the NACP's member organizations. 

 

Our organization's policy is that employees, (board) members and volunteers involved in decision-making mechanisms (such as the finance committee) refrain from voting or otherwise participating in decision-making where there is a conflict of interest or the potential for a conflict of interest. 

 

Conflicts of interest may include (but are not limited to) the following.

 

- The person has a direct or indirect interest in the matter to be decided.

- The person has an interest over third parties who are parties to the matter to be decided.

- The person is a director, officer, employee or first degree relative of a third party that is a party to the matter to be decided. 

 

In cases where there is or may be a conflict of interest, any employee or board member of the organization who knows about it shall inform the relevant decision-makers or the board of directors. 

 

Employees and board members should inform the board of directors of their intentions before engaging in any activity (relationship) that may inadvertently lead to a conflict of interest.

 

Note 1: Examples of Decisions that may involve a conflict of interest: Procurement of paid services or goods/property, tenders, hiring or firing of employees, promotion, and discipline of employees. 

 

Note 2: It is a conflict of interest for first-degree relatives, those who are in an executive/supervisor relationship in another organization, to be members of decision-making mechanisms such as the board of directors at the same time.

 

Note 3: It is a conflict of interest for employees of the organization other than the (Executive) Director to be a member of the board of directors, and therefore should not be a member of the board of directors. 

 

Note 4: The (Executive) Director should not be the chairman of the board due to the concentration of too much power in one person. The Director may be a non-voting member of the board of directors in those states where this is permitted by law. In states where this is not permitted by law, he/she may be a voting board member.

 

 

This policy is adopted by the NACP at its regular meeting on October 7-8, 2023.