The Practical Side of Annual Conflict of Interest Disclosure Statements [SUBSCRIBERS-ONLY]
Most nonprofit organizations have adopted a code of ethics, statement of values, or code of conduct. Within these statements there is always a reference to monitoring, oversight, and transparency related to conflicts of interest. Having a strong conflict of interest policy strengthens your code of ethics posture. Adding robust annual conflict of interest disclosure statements will project an even higher level of assurance that your organization takes its code of conduct seriously.
A conflict of interest policy by itself is not very effective without having annual conflict of interest disclosure statements completed and signed by Board members, senior management, and other interested persons. Without these disclosure statements, the responsibility to monitor conflicts of interest falls on the organization. With disclosure statements, the responsibility to report conflicts shifts to the interested person (the individual). This is both more effective and more consistent with best practices.
Although conflict of interest disclosure statements are widely used by nonprofits, the process for distributing and collecting these statements varies from organization to organization, and even from year-to-year for some nonprofits. Following a clear and consistently applied process is the key to success for this important practice, and the following are three of the most important elements of any conflict of interest disclosure process:
