A well-governed
organisation is
more likely to
fulfill its aims
and achieve
success

Conflicts of interest and conflicts of loyalty

Trustees have a legal duty to act in the charity’s best interests when making decisions as a Trustee. If there is a decision to be made where a trustee has a personal or other interest, this is a conflict of interest and the Trustee concerned will not be able to comply with that legal duty unless certain steps are followed.

For example, a Trustee would have a conflict of interest if the charity is thinking of making a decision that would mean:

  • The Trustee could benefit financially or otherwise from the charity either directly or indirectly through someone the Trustee is connected to
  • The Trustee’s duty to the charity competes with a duty or loyalty s/he has to another organisation or person