Get Conflict Of Interest Policy - The Mosaic Project - Mosaicproject

Conflict of interest is often also referred to as duality of interest. Essentially, it's when a board member or decision-maker is involved in another organization or process that might cause that person to not think objectively or impartially.

The purpose of the conflict of interest policy is to protect the FIRST's (Organization) interest when it is contemplating entering into a transaction or arrangement that might benefit the private interest of an officer or director of the Organization or might result in a possible excess benefit transaction.

Nonprofit Conflict of Interest Policy, Definitions It basically discourages and prohibits gifts, favors, loans, and transaction arrangements between directors, officers, or employees of the organization.

Types of conflict of interest and duty Open all. Actual conflict of interest. There is a real conflict between an employee or director's public duties and private interests. Potential conflict of interest. ... Perceived conflict of interest. ... Conflict of duty.

A conflict of interest policy is intended to help ensure that when actual or potential conflicts of interest arise, the organization has a process in place under which the affected individual will advise the governing body about all the relevant facts concerning the situation.

Example 1: An organization purchases insurance coverage through a firm owned by a board member. This would constitute a conflict of interest. Even though insurance purchases might normally be a CFO's or business administrator's function, a transaction with a board member must always be approved by the board.