28/07/2026
As a trustee, one of your most important legal duties is to make decisions based solely on what is best for your charity. That means knowing how to spot — and handle — a conflict of interest.
The Charity Commission has updated its guidance on this topic (CC29), and it’s worth a read for any trustee, whether you’re new to the role or experienced.
What is a conflict of interest?
A conflict of interest happens when your personal interests, or the interests of someone connected to you, could clash with what’s best for your charity. There are two types to be aware of:
A financial conflict arises when you (or someone connected to you) could receive money or something of value as a result of a decision your board makes, for example, if a trustee’s business is being considered for a contract with the charity.
A loyalty conflict arises when your loyalty to another person or organisation could influence your decision making. This might include your employer, another charity you’re involved with, a friend, or a family member.
Why does it matter?
If conflicts aren’t properly managed, the consequences can be serious. Decisions could be challenged and found invalid, leaving trustees personally liable for any resulting financial loss. Your charity’s reputation could also be damaged, and even the appearance of a conflict, if left unaddressed, can erode public trust.
The Commission is clear: managing conflicts of interest is the responsibility of the whole board, not just the chair or the person who has the conflict.
A simple step-by-step approach
The updated guidance sets out a practical process for managing conflicts when they arise:
Identify — be alert to potential conflicts early, ideally at the start of every trustee meeting. Keep a register of interests and update it regularly.
Declare — the trustee with the conflict should tell the rest of the board as soon as possible, before any discussion takes place.
Consider removing the conflict — sometimes the best option is to change course, or for the conflicted trustee to step back from the decision entirely.
Manage it — if you do go ahead, the conflicted trustee should leave the relevant discussion, not vote, and not count towards the quorum.
Record it — note in your minutes what the conflict was, who was affected, and how it was managed.
Have a policy in place
Every charity should have a conflicts of interest policy. This helps trustees understand what’s expected, ensures consistency, and demonstrates to funders, donors and beneficiaries that your organisation takes governance seriously. The Chartered Governance Institute provides a free template policy and register of interests that you can adapt.
Read the full guidance
The Charity Commission’s guidance includes detailed examples covering everything from employing a trustee’s spouse to merging with another charity where you share trustees. It’s a practical and accessible document.
You can read the full guidance on the Welcome to GOV.UK website: Conflicts of interest: a guide for charity trustees (CC29)
For more resources on trustee responsibilities and good governance, visit the E-Portal.
