This policy applies to all Trustees of Bibles for Children. It has been prepared to comply with the published guidance and legal requirements of the Charity Commission and the Office of the Scottish Charity Regulator.
The purpose of the policy is to provide guidance to Trustees on the identification of a Conflict of Interest and the Code of Conduct is to specify the course of action to be taken when a Conflict of Interest is identified.
General Principle
When making decisions as a Trustee, every Trustee has a legal duty to act in the best interests of the charity. If, when making a decision, a Trustee has a personal or other interest in the outcome of the decision, that that Trustee has a Conflict of Interest, and certain steps must then be taken in order to comply with the legal duties of all Trustees.
Conflicts of Interest are common in charities. A conflict does not mean that the Trustee has done anything wrong. However, action needs to be taken to prevent any conflict from interfering with that Trustees ability to make decisions solely in the best interests of the charity currently being represented.
Examples of a Conflict of Interest
- When a Trustee could personally benefit financially or gain some other advantage either directly or indirectly through someone else.
- When a Trustee could gain some financial or other advantage for a family
member or friend. - When the duty of the Trustee to this charity could compete with a duty or loyalty to another organisation or person.
Disclosure of Conflict of Interest
At the beginning or during a meeting when a decision has to be made, those Trustees that have identified a conflict of interest must declare it to the other Trustees and that declaration must be recorded in the Minutes of the meeting together with the name(s) of the Trustee(s) affected, the nature of and reason for the conflict and the particular item on the agenda to which it refers.
Dealing with a Conflict of Interest
Part A: At Trustees meetings
It is good practice to have the opportunity for such disclosures as a standard agenda item near the top of the agenda.
Once a disclosure has occurred, there are two ways of proceeding, namely:
- Either, find an alternative way of dealing with the matter which would then avoid the need for the Trustees to make a decision, or
- The Trustee(s) concerned does(do) not take part in the discussion or voting on the matter which gives rise to the conflict. This is normally best achieved by those affected leaving the room for the duration of the discussion and vote. The minutes should formally record such a departure and subsequent return of those involved. The minutes should also record an outline of the discussion and how the remaining Trustees made a decision in the best interests of the charity.
Part B: In the Annual Accounts and Report
It is a legal requirement that the details of any payments or other benefits to Trustees or people connected to them must be clearly stated in the Annual Accounts. The reason for the payments and the legal authority for making those payments must be given.