Charity Conflicts of Interest Policy Template (Free, UK)

1. Purpose and who this applies to

This policy explains how [your charity] identifies and handles conflicts of interest, so that our decisions are made only in the charity's best interests and can be trusted.

It applies to all our trustees, including anyone co-opted onto the board or a committee. Trustees are responsible for following it, and the board owns it.

2. What we mean by a conflict of interest

A conflict of interest is any situation where a trustee's duty to act only in the charity's interests could be affected, or could reasonably look as if it might be affected, by something else. There are two main kinds:

• A conflict of financial interest, where a trustee, or someone connected to them, could gain or lose money or another benefit from a decision. "Connected" includes a trustee's family, close friends, and any business or organisation they are involved with.
• A conflict of loyalty, where a trustee's judgement could be pulled by loyalty to another person or organisation, even if they gain nothing themselves. An example is a trustee who also serves on the board of another body we work with or fund.

A conflict can be real or perceived. If a reasonable member of the public would question whether a trustee could be impartial, we treat it as a conflict and handle it under this policy.

If someone who wants a decision from you offers a gift or hospitality, decline it or declare it.

3. Your duty to declare

Every trustee must tell the charity about their relevant interests. This is an ongoing duty, not a one-off:

• Declare your interests when you join, and again if anything changes.
• Declare any conflict as soon as you become aware of it, including at the start of a meeting, before an item is discussed, if it affects that item.
• If you are unsure whether something counts, declare it anyway and let the rest of the board decide how to handle it.

The chair will ask for declarations at the start of every board meeting as a standing agenda item.

4. Our register of interests

[Your charity] keeps a register of interests listing each trustee's relevant interests, for example paid work, other trusteeships or directorships, and significant connections to organisations we deal with.

• The secretary or governance lead [name the person] keeps the register up to date.
• Each trustee checks and confirms their own entry at least once a year, and tells us of any change in between.
• Trustees can see the full register at any time.

Keeping the register current is what lets us spot conflicts before they affect a decision.

5. Handling a conflict in a decision

When a conflict affects a decision, declaring it is not enough on its own. The conflicted trustee must not influence the outcome. Our default steps are:

• The trustee declares the conflict before the item is discussed.
• They do not vote on that item, and their vote is not counted towards the quorum for it.
• Where the conflict is significant, they leave the room, or the call, while the item is discussed and decided, unless the rest of the board asks them to stay to answer questions.
• The remaining trustees decide whether the decision is in the charity's best interests.

For example, if a trustee owns an IT firm that has bid to build our new website, they declare it, leave the room while the item is discussed and decided, and their vote is not counted towards the quorum. The unconflicted trustees make the decision.

If a conflict affects so many trustees that the others cannot make a valid decision, we will check our governing document for what to do, and seek advice or the Charity Commission's authority if needed.

6. Payments and benefits to trustees or connected people

Some conflicts are too serious to be managed just by stepping back from a decision. If a trustee, or someone connected to them, stands to receive a payment, contract, job or other benefit from the charity, stepping back is not enough on its own. We must also have proper authority to provide the benefit.

• Trustees generally cannot be paid or receive a benefit from their charity unless there is clear authority for it⁴, whether in our governing document, in charity law, or from the Charity Commission.
• A trustee cannot use their position to authorise a benefit to themselves or a connected person.
• The conflicted trustee takes no part in the decision, however good the arrangement looks.

How we check that authority, record it, and disclose it in our accounts is set out in our Trustee Expenses Policy. Follow that policy before any payment or benefit to a trustee or connected person is agreed.

For example, if a trustee presses the board to give paid work to a partner, child or close friend, that is a conflict of loyalty: they must take no part in that decision, and we still need proper authority before any payment is made.

A trustee or their family using our services on the same terms as anyone else is not normally a problem. Declare it, and take no part in any decision about your own case.

7. Recording conflicts and decisions

We record, in the minutes of the meeting:

• who declared a conflict and what it was
• how it was handled, including that the trustee did not vote and, where relevant, left the room
• the decision reached and why it was in the charity's best interests

A clear record is our evidence that the conflict was handled properly. Serious conflicts are also noted in the register of interests.

8. If this policy is not followed

If a trustee does not declare a conflict, or takes part in a decision they should have stepped back from, they should tell the chair as soon as they realise. The board will review the decision and correct it if it can. Where the failure has caused significant loss or harm, the board will assess and report it under our Serious Incident Reporting Policy.

9. Reviewing this policy

The board reviews this policy at least every two years, and sooner if the law or our governing document changes. Approved by the trustees on [date]. Next review due [date].