Assistance for Chapels / Documents / 23. Conflicts of Interest

Conflicts of Interest

     This can cause difficulties in our churches where there are many family connections.  Two examples:
     (1) Letting the chapel house to a trustee or a person closely related to or connected with a trustee would require an Order of the Charity Commission (see section 118 Charities Act 2011 for the meaning of “connected person”).
     (2) Placing with a trustee or a relative of a trustee a contract for building work at the chapel - this must be in the best interests of the chapel and the requirements of Section 185 Charities Act 2011 must be met.
     Trustees have a legal duty to act in the best interests of the church or other charity with which they are dealing.  If any decision arises which could benefit an individual Trustee or persons connected with him or her then this is a conflict of interest and must be managed.  The conflict must be identified, those concerned and connected parties must not be involved in the decision (and preferably should withdraw from that part of the meeting) and a record made in the Minutes of the conflict and how it was dealt with.