governance updates

From Joe Riley, Phoenix Council Board Member – Written by: McKinlee Covey

In May of 2005, Andy Roddick, one of the top tennis players in the world at the time, was a favorite to win the Italian Masters tournament. Early on, Roddick’s skill was on full display: He beat his opponent Fernando Verdasco in the first set. He was winning the next set too; on the match point, the referee called Verdasco’s second serve as out and declared Roddick the winner. The crowd cheered.

However, Roddick looked closely at the mark on the court where the serve had been called out and did not believe the call was correct. Under no formal obligation to tell the truth, Roddick informed the referee of the perceived error and asked for the point to be replayed. He returned to his side of the net, ready to play on, only wanting to win if the victory was fair and square. Verdasco won the replayed point, and then the match. A breath away from victory, Roddick lost in an upset, going from being a tournament favorite to an early elimination.

Although Roddick lost his shot at the big prize that day, he gained something arguably more valuable—he cemented his reputation as a man of integrity. In a single moment, he demonstrated the strength of his character for posterity and inspired fans with his commitment to honesty. Future opponents and referees alike could rest assured: here was a trustworthy sportsman.

Even if we’ve never participated in a high-stakes sporting event on the world stage, many of us can relate to this story. We’ve all faced moments of choice when we are called to do the right thing even if it carries consequences.  Each of these moments is an opportunity for us to show who we truly are—both as a leader and as a person.

In life and leadership, it takes courage to do the right thing and discipline to do so consistently. When we act with both courage and discipline, we develop our integrity and become leaders worth following.

Integrity Is Foundational to Leadership

Doug Conant wrote that integrity is “foundational and mandatory to leadership.” Too often, we get lost in the weeds when thinking about leadership, creating long lists of what a good leader needs to do. Or we conflate good leadership with being charming and bold. But at the end of the day, leadership begins and ends with a simple premise: Are you a person of your word?

Research shows that most employees rank trust in their bosses as the most essential component for workplace satisfaction. When people feel that they can trust their leaders they perform better, are more innovative and engaged, and experience less stress and burnout. Meanwhile, low-trust organizations experience the opposite effects.

So how can leaders embody integrity and build trust? Integrity is all about aligning your personal thoughts and actions with your public persona. Who you are in private and who you are in public must connect.

Dr. Stephen R. Covey said, “Moral authority comes from following universal and timeless principles like honesty, integrity, and treating people with respect.” We cannot fake, coerce, or pay our way to moral authority—it must be earned through our daily interactions and behaviors. Employees and colleagues alike are attuned to your leadership actions; they want to know that what you say matches up with what you do and who you are.

When we make integrity part of our leadership foundation, all our other qualities are on solid ground. And with trust as our bedrock, our organizations can thrive. Here are four practices that will help you move towards integrity in your leadership behaviors. 

1. Start with Yourself – Make It a Habit

Are some people more predisposed to acting with integrity? Perhaps. But it doesn’t matter. Whether or not you were born with a strong moral compass or were raised a certain way, anyone can lead a life of integrity. Integrity is a choice. But it isn’t a spur of the moment decision; like any competency, it is honed over time.

It’s doubtful that Roddick’s choice to be truthful at the Italian Masters was an outlier or whim; it’s more likely it was part of a decision pattern. At some point he decided to play honestly no matter what, and then he matched his behavior to that decision in moments small and large. Each of us can do the same. You can say today that you want to live with integrity and then commit to the principle, practicing in more and more moments over time.

When you practice making the right decisions consistently, eventually it becomes a habit. Dr. Covey researched and wrote about this extensively, explaining that integrity starts with keeping commitments to ourselves. He wrote: “As we make and keep commitments, even small commitments, we begin to establish an inner integrity that gives us the awareness of self-control, and the courage and strength to accept more of the responsibility for our own lives. By making and keeping promises to ourselves and others, little by little, our honor becomes greater than our moods.”

This process starts small, but it yields large and long-lasting results. First, integrity becomes a habit and then an essential part of who you are. The more you do it, the more natural it becomes, creating a virtuous cycle of momentum that strengthens your resolve to keep doing what is right, especially in difficult situations.

As novelist Mary Ann Evans writing under the pen name George Eliot once said, “Our deeds determine us, as much as we determine our deeds.” 

2. Declare Your Intent

It’s important to remember that the people you work with are not mind readers. If you want people to know what you stand for, what you believe in, and what guides your decisions, you have to tell them. Otherwise, how will they know what to measure your actions against?

Lack of clarity often leads to miscommunication, unmet expectations, frustration, poor results, and lagging collaboration. So, one of the first steps to leading with integrity is a practice Doug Conant calls, “Declaring Yourself.” He describes it this way: “The first hour of the first day I work with someone, I declare myself. I set aside an hour for a one-on-one meeting aimed at removing the mystery from our working relationship.  Rather that unproductively spending the first few months working together trying to indirectly figure out what to expect from one another — I have found it to be much more productive to take the issue head on. Then, we can constructively focus on the challenges at hand as quickly as possible.”

At the end of the hour he says, “I just spent an hour sharing with you the way I intend to behave and some of the motivation for that behavior. If I do what I say I will do, I guess that means you can trust me. If I don’t, I guess that means you can’t.”

Declaring yourself lays the groundwork to earn people’s trust by first extending trust. You’re inviting people to get to know you, but also to hold you accountable to what you say. This is an exercise in vulnerability, and may feel uncomfortable, but it is highly effective. We must first communicate our intent in order to demonstrate integrity and build trust. 

3. Do What You Say

The saying goes that “talk is cheap.” And it’s often true, but it doesn’t have to be. After you’ve declared yourself, it’s time to back up your word with your actions. When you do what you say, your talk is no longer cheapened—it becomes a treasure.

Doug Conant wrote that leading with integrity means, “always consciously acting with the knowledge that others are relying on us to embody our shared values with our words and deeds.” He says that words and actions are equally important; they go hand in hand. Talk without action breeds mistrust.

To grow your credibility and to create what Doug calls, “a profound reservoir of trust and belief in your ability,” you must walk your talk. How? Here are a few best practices:

• Prioritize your time according to your values
• Own your mistakes & share your successes
• Ask for and implement feedback
• See each interaction as an opportunity to match your actions to your words 

4. Be Consistent – in Public and in Private

Oprah Winfrey said, “Real integrity is doing the right thing, knowing that nobody’s going to know whether you did it or not.” Her words hold an important lesson for leaders: One of the truest tests of our integrity is our consistency—with or without an audience.

To fulfill the commitment to yourself that helps build your integrity habit, it’s crucial to uphold your values and ideals even when people aren’t watching. Dr. Covey called this, “being loyal to the absent,” and it’s a way to show respect to everyone in your organization, as well as to yourself.

Start to think with more intention about each moment of choice in your day–even the ones that people don’t see. Small moments matter. When can you step closer to your declared values? Maybe it means prioritizing purpose over profit, apologizing for a misstep, stifling your instinct to jump in before you’ve listened, or taking time to thank an employee for their contributions.

There are infinite opportunities to practice your integrity habit in any given day.  The more consistent and loyal you are to your principles, the more consistency and loyalty you earn from your constituents. 

5. Integrity Inspires

As we lead with integrity, we earn moral authority, increase trust within our organizations—and most of all, we inspire others. Inspiration is powerful. Research shows that employees are inspired by leaders who commit to their values and that, “the ability to inspire creates the highest levels of employee engagement and commitment.”  

As we lead with integrity, we earn moral authority, increase trust within our organizations—and most of all, we inspire others. Inspiration is powerful. Research shows that employees are inspired by leaders who commit to their values and that, “the ability to inspire creates the highest levels of employee engagement and commitment.”

As you model integrity, declare your intent, do what you say, and practice consistency, you will inspire others to greatness.

About the Author: McKinlee Covey is an educator, coach, and co-author with Stephen M.R. Covey of the WSJ bestseller, Trust & Inspire.  This article appeared in BoardSource in January 2023.

From Joe Riley, Phoenix Council Board Member – (Excerpted from Vincentian Life: Conference)

Retaining Your Members – Part Two

• Involve your regular donors.  Regular donors are equal partners in the Society.  We are a union of willing hands (Active Members), caring hearts and helping hands (Associate Members) and generous almsgivers (regular donors).  Each is separate but equal.
  • Many people are afraid to participate, afraid to meet the poor.  They choose to discharge their responsibility to help the poor by writing you a check.  While you may need their check to help the poor, your objective should be to tactfully get them involved in person-to-person contact with those in need.  Let them find out it’s not stressful when working with another, experienced parishioner.  Help them find how it gives them a warm and fuzzy feeling.
  • Get them into home visits the easy way – with the Back-to-School program, Thanksgiving or Christmas food box distributions that some Conferences put together.
  • Include regular donors in as many activities as you can, especially Masses on feast days of St. Vincent and Blessed Frederic, food and clothing drives, etc.  Send all major communications and newsletters to them.  This can sometimes convert them to Associate and then Active Full Membership. 

• Provide recognition.  In the business workplace, when someone asks the question, “what do you want from your boss in your job,” the two top answers are always security and recognition.
  • Recognize long-time members (at 5, 10, 15, 20, 25 year and other anniver­saries), those who continue to be active past the age of 80, and all retiring members.
  • Recognize your pastor, priests, deacons and nuns who provide help and support for your programs and/or your Conference.  We sometimes forget who pays the electric bill for our pantry.
  • Conduct a “graduation ceremony” when a member completes the Ozanam Orientation.  Recognize them in front of the entire Conference at your next meeting.
  • Use a star or other special character on your Conference membership list to indicate members who have completed the Ozanam Orientation.
  • Prepare and publish a list of Conference officers over past years.  List all Vincentians who made the Quarter-Century Club.
  • Put up a plaque in your pantry with the names of Vincentians who passed to their eternal reward while serving the poor.  Add a new name plate each time a member dies, conducting a short prayer service.

• Recognize the need for recovery and recuperation.  Occasionally a member may become dissatisfied or bored with their present assignment.  Others may get tired (especially your oldest members) and a few may experience burn-out.  Remember that a person’s family and job come first according to the Society’s own Rule.  Recognize these folks and thank them for the work they have accomplished and show them how their involvement has helped the people the Conference served as well as our Society.  Ask them for input on the manner in which you conduct your meetings and make assignments.  They may have a different perspective and help you to improve Conference operations.  After positively dealing with the situation they find themselves in, discuss other positions which may be more attractive to them.  Everyone in your Conference will get tired of the “same old thing,” so keep trying new projects and changing (improving) old programs.  The attitude “but we’ve always done it that way” will only ensure that your Conference remains a handful of old men and women, as you drive away new and younger people and burn out older ones.  A perception that an organization is dying is the number one reason why people leave or fail to join an organization.  The vibrant Conference will keep existing members and attract new members. 

• Work on (and pray over) personality conflicts.  Personality conflicts are inevitable in any group of humans.  Yet, if these are not managed, they will cause you to lose at least one of the two protagonists.  The President and Spiritual Advisor should try to help resolve any issues between the warring partners. It may be necessary to separate these people until, over time, they get to better know (and respect) each other in new ways.  Change home visit teams, schedule the Hatfields in at times when the McCoys aren’t there.  Time heals all wounds; give it a chance.  And pray that the Peace of Christ descends on both of them.

• Equip your people to do their job.
  • Information.  Your Conference does more than pass out food and money; you provide information which is often essential for guests to get back on their feet.  Your members must have that information to do their job. 
  • Publish a year’s Calendar so Active Members, Associate Members and regular donors, as well as your clergy, Parish Council and other church ministries, know what the Conference is planning and when.  This helps prevent conflicts, helps people reserve dates when you need their participation, and helps communicate the breadth of your Conference work.
  • Adopt and communicate Conference Policies and Guidelines.  Home-visit teams especially must know what latitude they have when working with a family in trouble.  Nothing is more frustrating than having the responsibility for a case without the authority required to act.  Home-visit teams should know one of three conditions exist when they visit:

1. 1. 1.  They cannot help a family financially with rent due to lack of funds, and must help in other ways – referrals, information, counseling, extra food, etc.
      2.  They cannot help a family with rent without the approval of the Conference which meets sometimes down the road.
      3.  They can help a family with rent up to “X” dollars without further approval – beyond that amount, Conference approval is required.

• • Necessary referral forms and vouchers (for clothing, gasoline, groceries, furniture) should be available and members instructed on how to properly complete them.  The Conference pays its bills faithfully and promptly, so vouchers given to guests are honored by thrift stores and other vendors.

• Recognize the value of Fellowship and Friendship.  Don’t forget to schedule social events.  The Society’s second objective requires a friendship relationship among members.  People are social beings, and personal relationships help cement one’s commitment to the common work.  Sometimes this can be combined with retraining (below).

• Retraining.  Retraining should occur periodically.  We all need to be reminded of basic job duties, of things that have become more important in recent years, and of how to handle new forms, procedures and program changes.  Older members not kept up to date can feel “lost” and out of touch.  Get all your folks together for refresher training at least every six months.  A good way of handling this is to schedule a social activity and combine the two.  A summer barbecue can involve socializing and eating, followed by a 90-minute refresher course, or vice versa.

• Never forget Spirituality.  People joined the Society of St. Vincent de Paul – not the American Cancer Society, or the United Way, or the Red Cross.  What separates the Society from these very worthwhile organizations is the fact that we are a faith-based organization; we bring spiritual values to the people we serve.  Burn-out is common after a relatively short time in most other volunteer agencies because the members don’t have a belief system to sustain them.  We can always fall back on our faith.  That is the reason we have members well into their 80’s and even 90’s who have been serving in the dining rooms, stores and other special works for more than 50 years.  Whether old or new, your members have a “thirst” for spirituality.  They need to be reminded of the spiritual aspects of their work.  If you only talk about the “numbers” – boxes delivered, money raised, families visited, hours worked – you will find members losing focus.  Even in the very best Conferences, teams experience discouraging cases.  They “get taken” by fraudulent couples. And, after a series of thankless guests, greedy applicants, lazy individuals and indifferent bureaucrats, those without a spiritual foundation will be “lost” to despair and discouragement.  Our spirituality is our anchor.  Keep it present at all times.  First things first.  Never become a Conference of just “numbers.”

From Joe Riley, Phoenix Council Board Member – (Excerpted from Vincentian Life: Conference)

Retaining Your Members – Part One

 We have noted several times in this Manual that progress takes time and patience.  Gaining new members, increasing contributions, attaining spiritual maturity, and developing a network of relationships happen only slowly, over time.  Once you have made that commitment in effort and prayer, would it not be a shame to lose what you worked so hard to build?

You retain people by helping them do things that warm their hearts and enrich their souls.  Then they will make the personal commitment to continue.

An important point to remember is that a happy, dedicated member is one who knows what is expected and also knows how and why what he/she does is important to the Society and those in need.  The heart of retention is the long-range feeling that the Society and its works are individually fulfilling.

NEW MEMBERS

Gaining a new member is like finding a diamond in the slag at the Kimberly mines.  You have no idea of its real value until you chip away the exterior to reveal its inner composition (get to know her/him), and spend time polishing its surface (provide training, motivation and direction).  A hesitant retired accountant could become your most dynamic home visit team member, engaging even the most cynical of guests in fervent prayer.  A quiet young parishioner may have the potential to be your successor as Conference president.

How do you retain these diamonds in the rough?

1.  Assign them a mentor. Assign them someone who will work with them for a while — at least four to six months.  Preferably an experienced Vincentian of the same sex.  To be considered for the role of mentor, a member should be well experienced in the Society (it would be wrong here to define a number of years of experience), have participated in sufficient number of home visits to have experienced a wide variety of circumstances, and has attended the Ozanam Orientation.
2. Assign them something to do right away, even if it appears trivial, like organizing the shelves in your pantry. Explain how it is important to your overall work (you must meet the health code or risk the loss of your pantry) and that you will be moving them to other, more important work soon.
3. Assign them a meaningful responsibility quickly. Don’t break your promise from the above item.  Give them something important to do, preferably home visits with an experienced Vincentian.
4. Provide them with training (local) as soon as possible for specialized positions (answering the phone, packing food boxes, picking up bread).  Team them up with an experienced Vincentian for home visits or food delivery.  People learn best from observing others.
5. Get them into Ozanam Orientation training within 3 months.  Never send them alone; send them with someone they know.  Anxiety and confusion run high among new members; having a friend with you helps clear away those bottlenecks to participation and development.
6. Help them feel they are members of a big family. Invite, but don’t force, them to interesting District Council and/or Diocesan Council   Offer to pick them up and drive them to the first couple functions; encourage the creation of carpools to take groups of members to functions.  Mix new members with old-timers whenever possible.  It gives confidence to the newcomers and new vitality to older Vincentians.
7. Don’t exclude non-Catholics. We are an organization which is “Catholic in character.”  Anyone who shares the objectives of the Society is eligible to join.  A real measure of your effectiveness is when non-Catholics join, perceiving that SVdP is not only an effective organization serving the poor, but a means of living out the tenants of their Christian (or monotheistic) faith.  Recent Popes have all stressed our obligation to practice ecumenism; let’s not drop the ball in the field.

Next, consider the suggestions, below, for existing members.

EXISTING MEMBERS

Yes, new members are essential for growth, vitality and the future.  But existing members are your backbone, source of experience, the people who will guide and mentor the newcomers.  They need your attention too.

Keep your members busy.  More members drop out because they don’t think they’re needed than because they’re overworked.  Keep them busy.  Get them involved in the whole picture.  Let them know what’s going on, locally, at the District Council/Diocesan Council level, even nationally.  Get someone to handle the “telephone tree” and make sure everyone gets a call when help is needed.  Even if someone says “sorry” again and again, don’t give up on getting them involved – keep calling.

Form committees and ask everyone to serve on at least one and, hopefully, two.  Good ones are:

• Information and Referral — Keep the material in your Information and Referral Manual (Sources of Assistance) complete and up to date.
• Food Procurement — Track what food is available at food bank and at alternate food sources; how and when your monthly allotment and other food supplies will be picked up, unloaded, and shelved.
• Food Processing — Arrange for vouchers for milk, bread, fresh fruits and produce; repackage laundry detergent, and odd items the Conference receives in bulk.
• Furniture Registry — Establish and maintain a list of donated, used furniture available from parishioners for guests when needed.  Try to arrange for temporary storage.  Match up with requests from guests.
• Food Pantry — Keep the pantry clean and the shelves stocked.  Some Conferences pre-pack food boxes by size of family.
• Social Events— Arrange potluck dinners, outings, parties, etc., for all members spaced throughout the year.
• Spirituality — Make a calendar for the year with plans for the religious days related to our Society. Coordinate activities with neighboring Conferences.
• Communications— make sure the arish bulletin has an item about SVdP every week, or the bulletin board has a display, or the newsletter is properly prepared for bulk-rate mailing.
• Correspondence — handle the correspondence of the Conference, communicating with other parish groups, sending get well and condolence cards, thank you notes to contributors, etc.
• Projects or Events Committees: Back to School, Postal Food Drive, Roses for Life, Boy Scout Food Drive, Christmas Gift and Food Basket, etc.

Encourage continuing education.  A person never stops learning.  The Diocesan Council can provide you with many ideas and resources for spiritual growth and Vincentian development for your members.  Included are:

*  The Ozanam Orientation provides basic orientation and essential background and is obligatory for new members and those serving as officers.  This one-day workshop includes SVdP history, spirituality, philosophy, organization, activities, home visits, etc.  Even experienced members have found this program very beneficial.

*  Serving in Hope has seven modules with multiple lessons in each. Modules include: Our Vincentian Vocation, Our Vincentian Spirituality, Our Vincentian Heritage, Our Vincentian Mission, Our Vincentian Rule, Our Vincentian Conference and the Home Visit.  Each lesson contains study, reflection, and small group discussion.  The formation guides and videos can be ordered from the National Council office.

*   Voice of the Poor.  This educational guide on advocacy is available through the National Council office.

*   Diversity.  “A Vincentian Guide to Diversity/Multicultural Issues” is available through the National Council office.

*   Attend Home Visit Training, Spiritual Advisor Training

*   Attend Retreats, Region Meetings

Be cautious about discouraging members from moving away from being actively involved.  People’s lives change, sometimes often and at inconvenient times.  Women get pregnant and have babies and their lives take difficult turns.  Adults find a parent has Alzheimer’s or a child has ALS.  Members who are actively involved who must ‘withdraw’ or ‘take time off’ should never be made to feel ‘guilty’ about the change.

Vincentians who leave active service on a positive note are more likely to return when their lives change again and/or to continue to help out in other ways (financially, volunteering for special projects, etc.).

Build the role of Associate Membership.  Continued participation of the Vincentian, in any role, is the key to eventually getting the person back into an active role.

By Joe Riley, Phoenix Council Board Member

Three Major Areas Of Board Responsibility

The beginning of a new fiscal year is typically a good time for Boards to discuss, or at least review, their responsibilities as a nonprofit’s governing body to ensure that all members understand their individual duties.  Most Board members recognize that their basic duties include, but are not limited to, defining and approving policies, selecting and supervising a CEO/Executive Director, ensuring programs are consistent with the organization’s mission and monitoring program effectiveness, as well as protecting the organization’s assets whether it is financial and/or social capital.[1]  From a broader and legal perspective, Boards have three major areas of responsibility:  Duty of care, duty of loyalty and duty of obedience.

Duty of Care:

A Board member is expected to act as any ordinary, prudent person in similar circumstances. This requires diligent, attentive, informed participation; i.e., reasonable care when making decisions in stewardship of the organization.

The duty of care is evident in the following activities:

• The Board holds regularly scheduled meetings.
• Board members have received and read the bylaws and policies.
• Information is provided to the Board in a timely manner and in advance of meetings.
• Board members arrive at meetings prepared, having read the minutes and advance material.
• Financial reports are furnished on a regular schedule and are reviewed by the Board.
• The Board makes informed decisions based on information provided.
• Minutes accurately reflect Board votes and decisions, including dissent.

Duty of Loyalty:

Board members are expected to act in good faith, giving undivided allegiance to the organization, when making decisions that affect it.  They should not operate for personal gain against the best interests of the organization.

When a conflict arises between the interests of a Board member and the well-being of the organization, the Board member should immediately disclose the matter and recuse from both the discussion and the decision-making.  If the matter proceeds, the terms of any transaction with a Board member must be at least as favorable to the organization as that which could be obtained from a party with no ties to it.

Board members should observe confidentiality regarding the Board’s deliberations and decision-making, and respect and adhere to all Board decisions, regardless of whether they voted in favor of the motion.  Only designated spokespersons (usually the President) may speak publicly on behalf of the organization.

Duty of Obedience:

A Board member is expected to act in a manner that ensures the organization operates in keeping with its mission and bylaws and in accordance with the laws and regulations governing its formation and status.

In order to maintain the public’s trust as a nonprofit organization, Board members must be fully conversant and compliant with the organization’s mission, bylaws and policies, and ensure that the policies, goals and activities (including competent management of its funds and other resources) are executed in accordance with the mission.

Source: Anne Dalton, “Three Major Areas of Board Responsibility,” The Association of Junior Leagues International, Inc., 2014.

[1] Boards should not involve themselves in the day-to-day operations of the nonprofit as this is the primary responsibility of the executive director.

By Joe Riley, Phoenix Council Board Member

Good leadership is one of the keys to every successful organization.  With this in mind, the following are among the projects and materials the National Governance Committee has developed.  It is our hope that these will help everyone become a better servant leader whether as a Conference or Council President, Officer, member of the Board of Directors, or Committee member.

GOVERNANCE TRAINING – We’ve put together a Governance Training program.  Although we have presented this live in a few locations, we know this may not be practical for everyone and so we recorded a presentation (click here for the video link:  https://vimeo.com/showcase/9185786). Click here to download the training guidebook: https://members.ssvpusa.org/leadership/, then click on “If You Have A Board” to locate.

GOVERNANCE WEB PAGE– We’ve grouped much governance-related material into one convenient location.  Search this site for information you need.  The direct link to the governance web page is https://members.ssvpusa.org/governance/    When you open this site you’ll find a summary of each of the posted categories and a guide suggesting what documents you should review based on whether you are or are not in leadership and if you are in leadership, based on the position you hold.

MENTORING – We continue to place mentors for new Council Presidents and new CEOs/Executive Directors through our National Mentoring Program.

PARTNERSHIPS BETWEEN CEOs/EXECUTIVE DIRECTORS AND COUNCIL PRESIDENTS – We prepared a paper that explores how to develop and maintain an effective relationship for the good of the Society.

SUCCESSION PLANNING – We also produced a paper titled “Who Me? Why In The World Should I Become A Vincentian Leader?” along with talking points and a list of resource materials.  There are significant personal benefits to being a Vincentian leader and the Society needs leaders.  Another paper titled “Succession Planning – A Brief Primer” offers guidance on this important subject.

RECOMMENDED SAMPLE POLICIES FOR NONPROFITS – All policies that appear here are meant to be examples of how such policies could read.  They are not meant to be adopted as is but rather to serve as examples only.

QUESTION & ANSWER MASTER INDEX – If you have a question ranging from the Rule to how best to operate a Conference or Council or the correct way to go about the day-to-day activities of a Vincentian, there’s a pretty good chance it’s been answered in Frederic’s e-Gazette.  For this reason we have a Master Index of questions previously asked and answered posted on the national website Governance page.

We suggest you take a look at the variety of leadership materials on the national website.  Take advantage of Leadership Training materials (click here https://members.ssvpusa.org/leadership-training/) and Leadership Mentoring (click here https://members.ssvpusa.org/leadership/).  Promote these materials among your fellow members.

We all belong to the Society because of a desire to help people, to live the Gospel message, and to grow in our faith.  It should follow then that as we provide assistance it be done in the best possible way, using best practices of our time, following the Society’s Rule, and complying with federal and state laws.  In this way we will ensure the good reputation of and the public’s confidence in the Society.

(Excerpted from Vincentian Life: Conference)

By Joe Riley, Phoenix Council Board Member

 IRS Form 990

The IRS requires all nonprofits to submit a Form 990 describing their financials and works at the end of their fiscal year.  The IRS gives our Councils and Conferences until February 15 of the following year to submit this report.  However, not all Conferences are required to submit it.

Only those Conferences that have their own EIN need to submit this report.  For all Conferences that have been allowed to use their Council’s EIN, the Council (District or Diocesan) will submit a consolidated 990 to the IRS which includes the Conference information.  (Additional information about Exemption Requirements – 501(c)(3) and submitting Form 990 tax returns appears at the end of this article.)

Guidelines

The Conference guidelines for service should be reviewed each year during October and/or November to ensure that they reflect current conditions.  This is the time that changes in the guidelines should be considered.  However, the guidelines are the work of the Conference members and they may change them at any time.  There is nothing magic about this time of year.  A regular review is good practice.

Audit

This is the time of year recommended for all Conferences to have an annual audit.  This is an informal audit and may be done by two or three members of the Conference, but not by those responsible for accounting or disbursing funds.  The purpose of the audit is not to find fault.  Its purpose is to assure the members of the Conference that all proper procedures are being followed and all the funds of the Conference have been reconciled on a regular basis.  It is recommended that an audit take place when a new President takes office.

The National Council website has a sample audit procedure on the Growth & Revitalization page under Conference Officer Training (click here:  https://members.ssvpusa.org/growth-revitalization/conference-officer-training/).

Recordkeeping

In the Manual of the Society there is a list of the various types of documents and records that the Conferences typically deal with.  Some are kept permanently.  Some are kept for seven years and then destroyed.  Some are kept for three years and then destroyed.  Some are kept for one year.

The beginning of the fiscal year is the time for the Secretary and Treasurer to review their records and do what is appropriate with each type of document.

Summary

The beginning of the fiscal year is a time to ensure that everything related to last year has been properly reviewed and reported.  It is also time for records to be properly stored. This is a time when Conference members should have every assurance that they are moving into the new fiscal year in good form.

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 Additional Information

 The following guidance was prepared in collaboration with Nancy Pino, Chief Financial Officer – Chief Operating Officer of the National Council of the United States, and Sherry Brown, Administrative Associate at the National Office.

 Exemption Requirements – 501(c)(3)

 Unlike Churches, Society of St Vincent de Paul Councils and Conferences are required to apply for, obtain and maintain an IRS tax exemption. The National Council proposes three options for securing tax- exempt status:

Option #1: Conferences operate as Integrated Units of a Council, all operating under one tax exemption and Federal Employer Identification Number (EIN). The Council annually files one consolidated 990 for all entities using its EIN.

Option #2: Each Conference or Council is responsible for itself only, each securing its own tax exemption and EIN. Each entity is required to annually file a 990 under their individual EIN.

 Option #3: Council secures its own EIN and tax-exempt status and a group letter ruling with the IRS, sharing its tax exemption with a group, but each Council and Conference having its own EIN. Each member of the group ruling is required to file a 990 under their individual EIN.

Note:  The National Council will no longer allow Councils or Conferences to remain in their group after 10/1/24.  They must choose one of the above options.

Form 990

Tax-exempt organizations, such as the Society of St. Vincent de Paul, which operate with a 501(c)(3) status are obligated to report their activities to the Internal Revenue Service on an annual basis.  This reporting is done on Form 990, Return of Organization Exempt From Income Tax.  The form is intended to give the IRS and the public a picture of the organization’s activities each year.  Some donors rely on Form 990 as their primary or sole source of information about a particular organization when selecting charities to support.

 Form 990 includes information about the organization’s finances, governance, and compliance with certain IRS rules and reporting requirements.  Additional schedules may be required depending upon the activities of the entity.

Generally, subsidiary Conferences that are using the Council’s EIN can rely upon the Council to submit a Form 990 to the IRS using information they provide to their Council.  If your Conference or Council has its own EIN, it must file a 990 series report every year. Depending on your situation, this may be a 990, a 990-EZ, or a 990-N. A Conference whose tax exemption is covered under a Council’s group ruling must annually submit a Form 990 for their individual EIN.

The Form 990 is due on the 15^th day of the 5^th month following the end of the organization’s taxable year.  Your fiscal year should be set forth in the bylaws of the Conference or Council. For Conferences and Councils with a September 30 fiscal year end, the due date is February 15. For those on a calendar year (December 31), the date is May 15. A six-month extension may be secured by filing Form 8868.

Timely filing of Form 990 each year is critical. If you miss the filing deadline, you will owe a late penalty. Failure to file a 990 for three successive years will result in an automatic revocation of your tax-exempt status. If your status is revoked, you will have to file a Form 1023 for tax-exempt status, pay the filing fee, and wait for the IRS to approve your status. If a Council’s tax-exempt status is revoked, all Conferences which use the Council’s EIN and operate under the Council are not tax-exempt.

Which form 990 do we file? As of the date of this writing, the general guidelines are as follows:

• Gross receipts of $50,000 or less and not filing a Group Return: may file a 990-N.
• Gross receipts between $50,000 and $200,000 AND total assets less than $500,000, and not filing a Group Return: may file a 990-EZ.
• Gross receipts of $200,000 or more, or total assets of $500,000 or more, and filing a Group Return: may file a 990.

There are exceptions to these rules that should be reviewed and those eligible to file a 990-N or 990-EZ, may choose to file a 990. This article should not be considered legal or tax advice. Details related to each Council or Conference will differ, and Conferences and Councils are encouraged to seek professional advice by hiring an accounting firm, Certified Public Accountant, or attorney familiar with tax-exempt organizations. These professionals will review the Council’s or Conference’s operations, organizational and legal status, and finances in order to determine the application of all rules under its specific circumstances and to prepare the appropriate Form 990 return.