THE FINANCIAL WAREHOUSE COMPANY
CHARTERED CERTIFIED ACCOUNTANTS
THE FINANCIAL WAREHOUSE COMPANY
Chartered Certified Accountants
SPECIALIST ACCOUNTANTS FOR CHARITIES AND NOT-FOR-PROFIT ORGANISATIONS
As a trustee, your foremost obligation is to make decisions that serve the best interests of your charity. It's imperative to ensure that personal interests or affiliations don't influence these decisions. Identifying and managing conflicts of interest is paramount to maintaining integrity and trust within your charity. Here's a comprehensive guide to help you navigate conflicts of interest effectively:
Identifying Conflicts of Interest:
Conflicts of interest typically fall into two categories: financial conflicts and loyalty conflicts.
Financial Conflicts:
These arise when a trustee, or someone connected to them, stands to gain financially from a decision made by the charity.
Examples include:
Loyalty Conflicts:
These occur when a trustee's allegiance to another individual or organization compromises their ability to make decisions in the charity's best interests.
Examples include:
Managing Conflicts of Interest:
1. Declare Conflicts of Interest:
2. Consider Removing Conflicts:
3. Manage Conflicts Proactively:
4. Maintain Records:
Addressing Serious Conflicts:
For conflicts deemed significant or complex, consider the following options:
Conclusion:
Effectively managing conflicts of interest is essential for upholding the integrity and credibility of your charity. By following these guidelines and proactively addressing conflicts, trustees can fulfill their legal obligations and safeguard the interests of their charity. For more detailed guidance on complex conflict situations, consult regulatory resources and seek appropriate legal advice when necessary.
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