Guidance on related party transactions in NFPs

A related party is a person or organisation (for example, suppliers, contractors and their owners and staff, or an NFP beneficiary) that is related (or has connections) to the NFP organisation. They can include pre-existing relations with board members, employees, volunteers, their families, and friends. These connections can benefit  the NFP but there needs to be a sound policy setting out how they are managed. The ACNC has released guidance on Related party transactions explaining the potential  risks and how to manage them.