CONFLICT OF INTEREST POLICY
About conflicts of interest
We have a legal duty to act in Kids in Kathmandu Nepal charity’s best interests when making decisions as trustees. If there’s a decision to be made where a trustee has a personal or other interest, this is a conflict of interest and we won’t be able to comply with our duty unless we follow certain steps.
For example, as a trustee, you would have a conflict of interest if the charity is thinking of making a decision that would mean:
- you could benefit financially or otherwise from your charity, either directly or indirectly through someone you’re connected to
- your duty to your charity competes with a duty or loyalty you have to another organisation or person
We will follow a 3-step approach (identify, prevent, record) so that we are able to comply with our duty and avoid:
- making decisions that could be overturned
- risking KIKN’s reputation
- having to repay KIKN, if we make unauthorised payments to trustees or the charity’s representatives
How we will identify a conflict of interest
- Legal requirement: a trustee must declare a conflict of interest immediately they are aware of any possibility that their personal or wider interests could influence their decision-making.
- Have a standard agenda item at the beginning of each trustee meeting to allow trustees to declare any actual or potential conflicts of interest.
How we will deal with a conflict of interest
Once a conflict of interest is identified, we will prevent it from affecting our decision-making by:
- finding an alternative way forward which doesn’t involve the conflict of interest (particularly if the issue is serious)
- taking appropriate steps to manage the conflict (if it’s less serious), which will usually mean that the person affected doesn’t take part in discussions about the issue
How we will record a conflict of interest
We will keep a written record of the conflict of interest and how we dealt with it in the minutes of our meetings. We will explain:
- what sort of conflict of interest it was
- which trustee or trustees were affected
- if any conflicts of interest were declared in advance
- an outline of the discussion
- if anyone withdrew from the discussion
- how the other trustees made the decision in our charity’s best interests
Legal requirement: as we prepare accruals accounts, we must include details of payments and benefits to our charity’s trustees and people connected to them. We must say why the payments were necessary and the legal authority we had to make them.