Not-for-profit board officers, directors, trustees and key employees must avoid conflicts of interest because it’s their duty to do so. Any direct or indirect financial interest in a transaction or arrangement that might benefit one of these individuals personally could result in the loss of your organization’s tax-exempt status — and its reputation.
Here’s a quick checklist to gauge whether your nonprofit is doing what it takes to avoid conflicts of interest:
Do you have a conflict-of-interest policy in place that specifies what constitutes a conflict and lists exceptions?
Do you require board officers, directors, trustees and key employees ...