When creating or managing a nonprofit organization, it is vital that you avoid any conflict of interest. When these matters do arise or have to be dealt with, Perliski Law Group is ready to step in and provide the legal counsel needed during this time. A conflict of interest occurs when an officer or director of a nonprofit personally profits or has personal interest in a transaction taking place. If this is the case, the transaction will be "tainted", unless either full disclosure was made and authorization or ratification is obtained or, the transaction appears fair to the organization. Disclosure and approval can be gained from the board of directors or members of the nonprofit, depending on the structure.

An example of a conflict of interest would be if an individual served as a director for more than one nonprofit organization and both organizations engaged in a transaction. Since a director has indirect interest in a transaction if they have material or financial interest in the other party involved.