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The decision makers for a licensed charitable collector have a responsibility to ensure that public monies raised for charitable purposes are used efficiently and effectively for the benefit of the organisation as opposed to individuals. Managing conflicts of interest is integral to maintaining strong governance practices and demonstrating transparent decision making.
Where a member of the Committee or Board has a potential conflict between their duties and responsibilities to the organisation and their personal interests this interest must be carefully managed.
Most corporate structures have a legislated process for the disclosure and management of financial or material personal interests and decision makers must ensure they are aware of the legal requirements applicable to their organisation.
Broadly the following principles should be followed when dealing with a conflict of interest:
As soon as a person becomes aware that they have an interest in a proposed contract or decision to be made by the committee or board they should disclose their interest and explain its nature.
The disclosure should be accurately recorded in the minutes for the meeting of the organisation.
The person with the conflict of interest must not be present while the matter is discussed or take any part in the discussions, deliberations or vote on the decision or contract.
Note: For organisations registered under the Associations Incorporation Act 2015 (WA) please refer to the INC Guide for incorporated associations in WA for information about the requirements to manage material personal interests.
Internal controls
A licence holder may wish to introduce internal controls to help manage potential conflicts of interest. For example:
If any of an organisation’s Principal Executive Officers are related, the Charitable Collections Advisory Committee will require a copy of its conflict of interest policy as part of the application for a charitable collections licence.
The Australian Charities and Not-for-profit Commission website includes sample policies and templates that may help organisations to develop an appropriate policy.
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