To gain a clear understanding of when a conflict of interest (a failure of fiduciary duty) exists for a nonprofit board member, the following Advocate story offers great detail. The, what I would offer to be a righteous effort, by the LSU board to keep profits from the sale of university-developed software entails the setting-up of an LSU controlled nonprofit whose singular purpose was to do just this. But the rest of the story is where multiple governance failings begin. Should all have known better: I think so based on the story.
You can go here to learn the details.