Conflict-of-interest policies are too important for nonprofits to neglect - Crawford Ellenbogen

Not-for-profit board directors, trustees and key employees must
not have a direct or indirect financial interest in a transaction or
arrangement that might benefit them personally. This is why nonprofits are required to have a written
conflict-of-interest policy. To stress the importance of this requirement, the
IRS asks you to acknowledge the existence of a policy on your annual Form 990.
Your policy should define all potential conflicts and provide procedures for
avoiding them. It’s also critical to outline the steps you’ll take if a
possible conflict arises. Contact us for help crafting a thorough policy.