Q&As
Can conflict of interest be an obstacle to board service?
It is probably impossible to find a board member who will never have any conflicts of interest. An active board member often has numerous professional and personal affiliations and, undoubtedly, some of them cross paths with your organization. He or she may have been chosen as a board member because of these particular associations or contacts.
However, if these associations develop into conflicts of interest and become a major obstacle to fulfilling the duty of loyalty — one of the main legal obligations of board members — it may be necessary to re-evaluate the board member's suitability for current board service. Examples of conflicts that warrant reconsideration of a board member or candidate include the following:
- The chief executive of the organization is a spouse or close relative of the board member.
- The board candidate is also the chief executive of an organization with a similar mission and program structure.
- The board candidate is expected to participate in fundraising but he or she is already affiliated with an organization that is competing for the same funding.
References
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