OK. We got the message. The IRS says we should all have written conflict of interest policies even though that doesn't seem to have anything to do with tax status. But we did not fight that point. We generally agreed that the Sarbanes-Oxley-like corporate governance reforms were good, so we willingly wrote and formally adopted conflict of interest policies for our non-profit organizations.
Now what? The IRS seems satisfied if the only thing we've done is write and adopt the policies. The agency so far does not seem to care whether any conflicts actually exist or even if they are