The Charity Commission has opened an informal consultation on its new draft guidance, 'Managing conflicts of interest: a guide for trustees'. Whilst the guidance does not bring about any substantive changes to the legal duties of the trustees, it sets out practical steps to help trustees avoid the harmful effects of unmanaged conflicts of interest. The guidance recognises that conflicts of interest affect charities of all types and sizes, and that the existence of a conflict does not necessarily reflect on the integrity of the affected trustee. However, the guidance emphasises that trustees must take steps to prevent conflicts of interest from affecting their decision-making by identifying, effectively managing and formally recording any conflicts which arise.
The Commission is seeking feedback from charities, trustees and charity experts as to whether the guidance is clear and will be helpful, with the consultation closing on 20 August 2013. The draft guidance can be viewed online here.
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