The IRS Form 990 asks about whether non-profit organizations have a written conflict of interest policy.It also asks how the board determines if a conflict exists and how the board manages conflicts.
Whether it’s a commercial entity or a non-profit organization, nearly every director that serves on a board has an outside level of interest in the organization’s business.
That’s a good thing from the perspective that board members share their areas of expertise with the rest of the board.
The insurance agency pays the insurance agent a commission for all new business that the agent brings into the agency.
The agency paid a commission to the agent for the board bringing their insurance policies to the agency.
As part of on-going board development, it’s helpful for boards to set aside time, annually, for discussing hypothetical situations where a conflict of interest could occur.