Conflict of Interest
Maine’s Nonprofit Corporate Act defines conflict of interest transactions and the IRS Form 990 asks organizations to indicate whether they have adopted a conflict of interest policy. While having a written policy is not legally required, it is a strongly recommended practice and the IRS may increase their scrutiny of returns from organizations that have not adopted recommended policies. The following resources will help you understand this topic. The sample policies provide a basis from which nonprofits can create their own policy, and are not intended for verbatim use without careful review.