The IRS asks tax-exempt organizations on the IRS Form 990 if they have a written conflict of interest policy – and it’s never a good sign when organizations can’t answer ‘yes’ to this question. Pennsylvania’s charity regulators care, too. Even if an organization is not a charitable organization, Pennsylvania law only allows for related-party transactions in certain circumstances. This template policy is designed to help nonprofit leaders fulfill their fiduciary duties and keep their organizations in compliance. This version is a good starting point for boards that take conflicts of interest seriously and that want something more robust for identifying and screening conflicts of interest. It includes an annual disclosure form and provides a roadmap for screening and vetting conflicts.
This document is not legal advice. You should consult a lawyer with experience representing Pennsylvania nonprofits before signing and filing documents. Every startup nonprofit is different, and a lawyer can help guide you through the startup process and the important considerations relevant for your particular organization.