FORCES CHILDREN’S TRUST (CHARITY NO. 1104212)
CONFLICTS OF INTEREST POLICY
This policy is intended to be read in conjunction with the Charity Commission’s guidance documents “The essential trustee: what you need to know, what you need to do (CC3)” and “Conflicts of interest: a guide for charity trustees (CC29)“. The guidelines on managing conflicts of interest are contained in the Trust’s governing document and will be followed at all times. This policy will be kept under regular review.
- Introduction
- A conflict of interest is any situation where the personal interests of a trustee, employee or volunteer could, or could appear to, run counter to those of the charity.
- Trustee conflicts of interest can lead to decisions that are not in the best interests of the charity and which are invalid or open to challenge. They can also damage the charity’s reputation or public trust and confidence in charities generally. These harmful effects can be prevented if conflicts of interest are identified in advance, as the trustees can then ensure that they do not affect their decision making.
- Financial conflicts and conflicts of loyalty
- Trustee conflicts of interest usually arise where:
- a trustee stands to receive a financial or other material benefit, either directly or indirectly through a connected person (such as a close relative or a business partner); or
- a trustee’s duty to the charity may compete with a duty or loyalty they owe to another organisation or person.
- Trustees must not receive any benefit from the charity unless they have express legal authority to do so. In some circumstances, a trustee (or a person with a financial connection to a trustee) may receive payments or other benefits from the charity. This is only permitted if[1]:
- the benefit is specifically authorised by the charity’s articles of association, the Charities Act (or other relevant legislation), the Charity Commission or the courts;
- any specified procedures are strictly followed;
- the non-conflicted trustees are satisfied that allowing it is in the charity’s best interests; and
- the conflict of interest is managed in accordance with this policy.
- Benefits that could lead to a conflict of interests include:
- a proposed sale, loan or lease of charity assets to trustee;
- the proposed acquisition, borrowing or lease of assets from a trustee for use by the charity;
- appointing a person who has recently resigned as a trustee to a paid role within the charity;
- paying a trustee, or a person or company closely connected to a trustee, for providing goods or services to the charity;
- employment of a trustee’s spouse or other close relative;
- making a grant to a trustee, or a close relative of a trustee.
- Conflicts of loyalty arise when, although he or she does not stand to gain any benefit, the trustee’s decision making at the charity could be influenced by his or her other interests. For example, a trustee’s loyalty to the charity could conflict with his or her loyalty to:
- another organisation, such as his or her employer;
- another charity of which he or she is a trustee;
- a member of his or her family; or
- another connected person or organisation.
- Trustee conflicts of interest usually arise where:
A conflict of loyalties will arise if a trustee’s other interest could, or could be seen to, interfere with his or her ability to make decisions that are only in the best interests of the charity.
- Identifying and declaring conflicts of interest
- The charity has systems in place so that individual trustees:
- have a clear understanding of the circumstances in which they may find themselves in a position of conflict of interest; and
- understand their personal duty to declare them.
- Conflicts of interest is a standard agenda item at the beginning of each board meeting, providing an opportunity for declaration of any actual or potential conflicts of interest in respect of any of the items on the agenda.
- Trustees are required to declare any interest which they have in an item to be discussed, at the earliest possible opportunity and certainly before any discussion of the item itself.
- There is no need for a trustee to declare an interest if it cannot reasonably be regarded as likely to give rise to a conflict of interest or if, or to the extent that, the other trustees are already aware of it (or ought reasonably to be aware of it).
- If a trustee is uncertain whether or not he or she is conflicted, he or she is required to err on the side of openness, declaring the issue and discussing it with the other trustees.
- If a trustee is aware of an undeclared conflict of interest affecting another trustee, he or she must notify the other trustees or the Chair.
- If there is any doubt about whether or not a particular trustee has a conflict of interests, the Chair’s decision will be final (unless the trustee concerned is the Chair, in which case the decision will be made by the other trustees).
- The charity has systems in place so that individual trustees:
- Where a potential conflict has been identified
Once a conflict has been declared or otherwise identified (and particularly if the trustee concerned stands to benefit as a result of the trustees’ decision on the matter in question), he or she must:
- provide sufficient information to the other trustees to enable them to properly debate the matter;
- be absent from the part of the meeting at which the matter is discussed;
- not be counted in the quorum for that part of the meeting; and
- have no vote on the matter.
- Record-keeping
- The Charity Commission expects the charity’s written records to document any conflicts of interest and how the trustees have dealt with them. Any conflicts must therefore be referred to in the minutes of the meeting at which they were considered.
- Where there is a conflict of interest, the trustees must ensure that the written record of the decision shows:
- the nature of the conflict;
- which trustee or trustees were affected;
- whether any conflicts of interest were declared in advance;
- an outline of the discussion;
- whether anyone withdrew from the discussion; and
- how the non-conflicted trustees took the decision in the best interests of the charity.
- Register of Interests
- On becoming a trustee or an employee of the charity, and periodically afterwards, each person will be asked to complete a declaration of interests form, setting out any interests they may have which might conflict with those of the charity, including:
- details of current employment, and any previous employment in which they continue to have a financial interest;
- details of any appointments (voluntary or otherwise), such as trustee appointments and directorships, and membership of local authorities or tribunals;
- membership of any relevant professional bodies;
- investments in any unlisted companies, partnerships and other forms of business, major shareholdings (over 1% of issued capital) and beneficial interests;
- gifts or hospitality offered to them by external bodies in connection with their role within the charity over the previous twelve months, and whether the offer was declined or accepted;
- any contractual relationship with the charity or the organisations with which it works; and
- any other interests not covered by the above that could conflict with those of the charity.
- The nature and likely duration of the conflict, and the names of the parties involved, must be declared in each case.
- Any interests that have been declared must be entered into the charity’s Register of Interests, which must be reviewed and updated at least annually and also when any changes occur.[2]
- On becoming a trustee or an employee of the charity, and periodically afterwards, each person will be asked to complete a declaration of interests form, setting out any interests they may have which might conflict with those of the charity, including:
- Staff and volunteers
- Staff and volunteers are required to be mindful of potential conflicts of interest. These can occur if people use their position within the charity to:
- further their own financial interests by using information made available to them in the course of their role;
- benefit a third party with whom they are associated – for example, by recommending a service provider to whom they are related;
- discriminate against a beneficiary by reason of their political or religious views or allegiances;
- favour a beneficiary to whom they are related;
- are employed or engaged by an organisation that competes with the charity for funding; or
- are involved with groups whose values are in conflict with those of the charity.
- Staff and volunteers who have an interest that potentially could be in conflict with their position with the charity should bring it to the attention of the trustees for consideration.
- Most conflicts of interest can be successfully managed if they are known about. The interests of staff and volunteers outside of their role with the charity will not necessarily prevent them from continuing in that role, provided that they are open and transparent.
- Where it is deemed that a member of staff or volunteer acted in their own interests to the potential detriment of others, or to the charity, remedial action will be taken by the trustees. In the case of staff members, this may involve disciplinary action, which will be taken in accordance with the charity’s usual disciplinary proceedings.
- Staff and volunteers are required to be mindful of potential conflicts of interest. These can occur if people use their position within the charity to:
- Monitor and Review
| Version | Approved by | Approval date | Main change | Review period |
| 1.0 | Chair | December 2025 | Initial first draft | Annually |
[1] Paying a trustee or a connected person for providing goods or services to the charity – GOV.UK
[2] A copy of the Charity’s Register of Interest is available upon request