“Black’s Law Dictionary” describes conflict of interest as being in connection with “public officials and fiduciaries and their relationship to matters of private interest or gain to them” in situations where regard for one duty tends to lead to disregard of another. John R. Boatright expanded the definition beyond public officials and fiduciaries to all “agency” relationships where the agent has the duty and obligation to act in the best interest of a principal. Boatright’s definition applies to organizations acting as agents or principals, as well as to individuals.
The Internal Revenue Service imposes heavy excise taxes on private foundations for engaging in prohibited acts of self-dealing with the foundation’s substantial contributors, managers, owners, or business affiliates, and current rules extend to all nonprofit educational institutions and hospitals. www.referenceforbusiness.com
