Charity Commission: updated guidance on conflicts of interest
The Charity Commission have published their updated conflict of interest guidance. The updated guidance includes a summary, detailed guidance and the legal underpinning, as well as examples.
The new guidance:
- Contains a revised definition of conflict of interest;
- Introduces a three-step approach to handling conflicts of interest; and
- Highlights the serious consequences that can result from mishandling conflicts of interest and sets out the Commission's regulatory expectations.
Trustees of charities must act in the best interests of the charity, according to the charity's governing document and must put the interests of the charity first. It is important that any conflicts of interest are managed and dealt with appropriately.
Key action points:
- It is important that trustees are aware of their duties and responsibilities in relation to declaring and managing conflicts of interest, and trustees should familiarise themselves with the Commission's updated guidance.
- It is recommended good practice for trustees to have a conflicts of interest policy in place.
- You can view the Charity Commission's guidance here.