When you submit a proposal, sometimes the donors ask if you have any conflict of interest. The donor also might ask you to disclose them. To be able to answer this question truthfully, you first need to understand what conflict of interest means. In this article, we will look in detail at the meaning of conflict of interest and give some examples.
A conflict of interest basically means when a person’s judgement could be clouded because they have two different interests that collide. These could be the personal interest and the professional interest, the financial interest and the societal interest, etc.
Why does the donor want to know about this?
The donors want to know if you have any potential conflicts of interest because they want to be able to decide on the proposals based on the facts alone. They want to know if the proposal was written with the best interest of the beneficiaries in mind, or if there were other factors in play. They also want to know if the measures and activities that you propose are the best and most appropriate in this particular situation.
What could a potential conflict of interest be?
A potential conflict of interest could be for example if you propose to use a technology in a project that you own. In this case you would receive financial benefits if the project wins the grant. The donors could not be sure anymore if you proposed this technology because it is the best, or because it will generate income for you.
Another conflict of interest could be if you own a business that does something similar than the project proposes. If the project is successful this could possible hamper with your business success. In this case, you might not do everything necessary for the project to succeed.
Does a conflict of interest always mean our project will be disqualified?
Having a conflict of interest does not always mean that a proposal will fail. Being open about it contributes to the transparency of the process. It gives the donors the chance to figure out for themselves what they think. In these situations, you have to have a very good justification in place though. Within the context of the first example, you could explain why this technology is the only and best option. With the second example, you would probably have to put some measures in place to make sure that that particular person does his or her job well. You would also need to explain, why it is necessary for this person to be in this position.
Did you ever encounter a conflict of interest in your projects?
Please share your experiences so we can all learn from each other.