Conflict of Interest
Full definition — A conflict of interest arises when a board member has a personal stake in a matter before the board that could compromise their objectivity. Common examples include voting on contracts with companies owned by a board member's family, hiring relatives, or benefiting financially from board decisions. Most charter schools are required to adopt a conflict of interest policy that mandates disclosure and recusal. In North Carolina, conflicts involving nonprofit board members are governed by G.S. 55A-8-31.
Why It Matters
Undisclosed conflicts of interest are a leading cause of governance failures and can result in legal liability, loss of public trust, and scrutiny from the authorizer. Board members should proactively disclose potential conflicts and recuse themselves when necessary.
Related Terms
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