Conflict of interest or just good business? Here's a paragraph I found in a CSQ Magazine article offering advice to C-suite philanthropists:
When you join a board, make a conscious effort to get to know your fellow board members. You should be encouraged to have a relationship with both the organization and other board members. Professionally, you can benefit greatly from your board relationships. These are individuals who share an interest in the same areas and can be reliable and valuable connections for you beyond your shared board service.
Furthermore, many business deals are born in the conference rooms of nonprofits. But if you benefit financially from a deal you make because of a connection made through a nonprofit, it’s best practice (and good karma) to donate a portion of the proceeds to that organization.
Serving on a nonprofit board can be one of the most rewarding and invigorating things you do. The power to make meaningful change in people’s lives is truly inspiring. It’s only right to approach these opportunities as strategically as you would any other major venture.
I suppose the question of conflict is specific to intentionality. If a business person joins a nonprofit board, knowing who are the members and what their possibilities are for business opportunities and then, over time is able to milk those opportunities, does it hurt the nonprofit? Perhaps not overtly although one might question what the opportunistic member is doing to support the nonprofit and fulfill their fiduciary duties. And precisely what are those business deals that are born in the conference room? I can't say I know for sure but maybe I just haven't sat in enough board rooms filled with business people looking for deals. Something irritates me on this advice - if you have additional thoughts - please share.