[Nathaniel]

The distinction between an “interested person” and a “disqualified person” is an important one, especially for nonprofits that rely on the IRS sample conflict of interest policy. The IRS model can be a useful starting point, but organizations should not assume it covers every situation addressed by IRC Section 4958.

In practice, a conflict of interest policy should reflect the organization’s actual risks, governance structure, and applicable laws. For healthcare nonprofits, that may include additional consideration of Stark Law and False Claims Act requirements. It can also be helpful to have processes for regularly verifying an organization’s current nonprofit status and compliance information. Tools such as the Nonprofit Check Plus API can support that verification process, although they would complement rather than replace legal or governance review.

Using the IRS sample as a guide while having counsel review and tailor the policy seems like a practical approach, particularly for organizations with limited internal legal resources.