The people on a charity’s board make an enormous contribution to its work and to their community. Board members bring their experience, expertise and commitment to the boar table and, across Australia, are doing wonderful things for the community through these roles.

One of the fundamental responsibilities of board members is to always act in the best interests of the charity and in a way that furthers its charitable purpose. There may be times when a personal interest can come into conflict with this responsibility, but through good governance, these conflicts can be identified and resolved, or even prevented.

The charity sector in Australia has built a reputation for integrity, ethical behaviour and trust. Indeed, charities are among the most trusted organisations in our community. This reputation inspires the confidence of donors and volunteers and is essential to the work of the charity sector. Having a robust process in place to respond to conflicts of interest helps to ensure that this good reputation can be sustained.

About this guide

This guide has been developed to help explain what conflicts of interest are and how they can be managed. Conflicts of interest often occur and most people will encounter them when working or volunteering with a charity. They do not need to be a serious problem. However, if not managed properly, a conflict of interest can damage a charity’s reputation and, in serious cases, lead
the charity or its board members to break the law.

What this guide covers

This guide explains conflicts of interests and what needs to be considered when they arise.

Conflicts of interest can be more easily identified and managed by ensuring your organisation is properly informed on how to identify, prevent and manage conflicts of interest.

Who this guide is for

This guide is for people who are, or are considering becoming, board members of a charity registered with the Australian Charities and Not‐for‐profits Commission (ACNC). It may also be of interest to employees and volunteers of charities.

In using the term ‘board members’, we refer to members of the governing body of a charity. In your organisation, they may be called the directors, governors, trustees or members of the management committee.

For the ACNC, these people are also known as ‘responsible persons’. These are the people with responsibility for governing your charity. Your charity has certain obligations that relate to responsible persons, so it is important that you know who these people are.