17d • General discussion
Transparency and Conflict of Interest. Let’s Talk About It.
One of the quickest ways a nonprofit loses trust, both internally and externally, is a lack of transparency.
Conflict of interest comes up more often than people think. Most of the time it is not intentional or unethical. It is simply misunderstood.
A conflict of interest exists when someone in leadership, whether a founder, board member, or officer, could personally benefit from a decision they are part of. That benefit may be financial, relational, or professional.
The issue is not the conflict itself.
The issue is whether it is disclosed and handled properly.
Strong, healthy nonprofits do a few key things well:
• They require annual conflict of interest disclosures
• They discuss potential conflicts before decisions are made
• They step back from votes when appropriate
• They document decisions clearly
Transparency is not about suspicion.
It is about protection.
It protects the organization.
It protects the board.
It protects you as a leader.
If your nonprofit wants grants, major donors, partnerships, or long term credibility, this is not optional. It is foundational.
Do you already have a conflict of interest policy in place, or is this still on your “we’ll get to it” list?
No judgment. Just clarity.
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Transparency and Conflict of Interest. Let’s Talk About It.
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