IRS Conflict of Interest Policy on Form 990

Charities should have a conflict of interest policy.

The IRS asks about a non-profit organization's conflict of interest policy on the yearly non-profit tax return, Form 990. Every non-profit with tax exempt status submits a conflict of interest policy to the IRS.

Policy

A conflict of interest policy defines a conflict of interest, when a board member or employee's personal matters conflict with business decisions, and discuses what the organization plans to do to avoid conflicts.

Significance

Form 990 asks if the organization has a conflict of interest policy. The form also asks if the organization uses and enforces the document. The IRS asks organizations that do have and use the document to explain how on the Form 990.

Example

The IRS provides an example conflict of interest policy (See Resources). This document is a guide for organizations to write their own policy.

References

• IRS: Form 990
• IRS: Conflict of Interest Example