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What Is Meant by “Hoarding” in a St. Vincent de Paul Context? Part Two
What Is Meant by “Hoarding” in a St. Vincent de Paul Context? Part Two 150 150 Jill Pioter

Within the documents of the Society of St. Vincent de Paul, there are found a number of instances where hoarding is prohibited. Please look at the Appendix to this document to see those specific references. Unfortunately, there is no specific place in the SVdP documents where the word hoarding is actually defined. There have been many times over the years that the National Office has been called to give a definition so our members can have a better understanding of the prohibition. The explanation was given a number of times in the Q&A section of the National Council’s Frederic’s e-Gazette.  However, it has been deemed appropriate by the National Governance Committee to give a formal definition.

Webster’s New Collegiate Dictionary defines hoarding as “to collect and lay-up, amass and conceal.” The considerations related to hoarding within the Society of St. Vincent de Paul, however, are slightly different when looking at this from a Conference perspective and a Council perspective.  We have treated each separately.

(For Frederic’s e-Gazette readers:  Part One addressed Conference considerations.  Part Two deals with Council considerations.)

Council Considerations

A. TYPES OF FUNDING HELD BY COUNCILS

The first thing to keep in mind is that Councils do not do direct assistance. The primary purpose of the Council is to support the work of the Conferences. On the Council Annual Report, there is no designation for direct assistance. So, typically, the funds raised by the Council are for something other than direct assistance. The primary concern for hoarding is the decision to bank funds rather than give assistance to those in need.

Not all Councils have Special Works that provide direct assistance. Usually when they do, they have designated fundraising to support those Special Works. If a Council receives donations intended for direct assistance and they have no Special Works, then they should be distributing those funds in one fashion or another to the Conferences; if they do not, then that is hoarding. The next consideration before answering the question “What is Hoarding?” is to understand the different types of funds that Councils may hold.

  1. General Donations: These funds are received from the Conferences, the public, other SVdP entities, general fundraising efforts of the Council, benefactors, general bequests, memorials, and organizations. There is no specific intent associated with these funds other than the assumption that the funds will be used for the purposes of the Society to support the work of the Conferences and better serve those in need. These funds are held in checking accounts, savings accounts, money market accounts, CDs, and other financial instruments that are essentially considered to be liquid (easily accessible). A few comments must be made related to the fundraising efforts by Councils. Special care must be given to the way fundraising appeals are made. Sometimes, a Council will create an appeal that looks to the donor as if the donation will be used for direct assistance to those in need when the actual intent of the Council was for the funds collected to be used for other purposes. If the implication from the appeal is different from the actual intent of the Council, then the appeal must be clarified.
    These funds can be susceptible to hoarding.             
  2.  Donor-Designated Funds: These funds are received from a donor (individual or organization) that identifies a specific purpose for the use of those funds. For example, an individual gives a check to a Council and on the line preceded by the word “for” the donor has specified “utility payments.” Another example is a check from a donor that is accompanied by a note or letter that designates the donation for a particular purpose. If the Council accepts the check, it accepts the responsibility to track those funds and only use those funds for utility payments. The funds cannot be used for any other purpose. In this case, if the Council has a Special Work that provides utility payments for those in need, then the Council must use the funds in that Special Work. If it does not, the funds can also be distributed to the Conferences to help make utility payments. Another example would be a Council receiving a check from ABC Organization for $10,000 to be used for rental assistance. If the check is accepted, the Council must hold those funds in reserve and only use those funds for rental assistance. The Council would do so in a similar way to that described for utility payments. The Council can also distribute the funds to the Conferences and the Conferences have a legal obligation to ensure the funds are not used for any other purpose.
    These funds must be used for the purpose given. When not used for the purpose intended, these funds may also be considered as hoarding.
  3. Funds from Grants: These funds, for the most part, are similar to Donor-designated Funds. They are usually given for a specific purpose and that purpose must be honored.
    These funds must be used for the purpose given and are not susceptible to hoarding.
    However, sometimes, but rarely, grant funds are issued for general use by the Council. In this case the funds are treated the same as general donations.
    These funds must be used for the purpose given. When not used for the purpose intended, these funds may also be considered as hoarding.
  4. Capital Campaigns/Endowments/Disaster Relief: Capital campaigns are normally established to purchase land, buildings, special equipment, or fund special programs. Endowments may be established to provide special programs or services with ongoing income. Disaster relief funds are normally established to provide relief to people suffering from a recent disaster in the area. The key thing about these funds is that donors contribute to them for their specific purpose. These funds are collected for a specific purpose and can only be used for that purpose. These are treated the same as Donor-designated Funds.
    These funds must be used for the purpose given. When not used for the purpose intended, these funds may also be considered as hoarding.
  5. Interest Earned/Investment Income: If funds are placed in financial instruments that gain interest or in an investment account that generates income, there are two options available:
    1. If the donor requires it, the interest earned/investment income on his/her donation must be used for the purpose of the fund for which it was originally designated.
    2. Otherwise, if the allocation of interest creates an unnecessary burden there is no legal requirement for the interest earned/investment income to be restricted for any purpose and may be used as the Council determines. It may create an unnecessary burden to try to allocate the interest to specific funds.
      All interest earned/investment income that is for general use is not susceptible to hoarding (see #1 – General Donations, under Council Considerations). All interest earned/investment income designated for direct assistance to those in need is susceptible to hoarding, if not used for the purpose intended. 
  6. Council-Designated Funds: There are times when the Council takes a certain amount out of the general fund and sets it aside for a particular purpose. Those funds will remain in the designated area until the Council decides to use them for another purpose. These Council-designated funds may be changed from one purpose to another as often as the Council decides. An example of this is a Council budget, where funds are designated to be spent for a fundraising dinner. The budget designations may be realigned at any time by the Council.
    These funds, having originated in the general fund, are not susceptible to hoarding.
  7. Council Reserve Accounts: Councils sometimes have fixed expenses. For these, the Manual’s recommendation is to maintain a balance for the future of up to six months of expenses. Councils, like Conferences should not seek financial security by building up excessive balances for future needs. There may be needs for capital campaigns, endowments, and disaster relief, but those are addressed in number 4 above. So, unless a Council has some fixed expenses, there is no need for a reserve account. Surplus funds should be shared generously with needy Conferences or Special Works of other Councils. The “balance for the future” and/or the reserve account may be susceptible to hoarding.
  8.  Special Works Reserve Accounts: Stores and other Special Works that may be operated by a Council may legitimately have fixed expenses. The recommendation from the Manual is to maintain a balance for the future of up to six months of expenses. This balance for the future or reserve account should be maintained at such a reasonable and necessary level as the Council or the Board of Directors determines is needed to assure the financial stability of the Special Work. Surplus funds should be shared generously with more needy Conferences or Special Works of the Councils. There may be needs for capital campaigns and endowments but those are addressed in number 4 above. The “balance for the future” and/or the reserve account may be susceptible to hoarding.

So, it boils down to two types of funds that are held by the Council: those that are susceptible to hoarding and those that are not.  Those funds that are designated for a particular purpose must be honored (by law) for that purpose. Our concern in this document is to define hoarding, so let us recap which funds are susceptible to hoarding:

  1. All funds designated for direct assistance to those in need (normally in Special Works);
  2. Grant funds designated for general use for direct assistance to those in need;
  3. Council Funds designated for direct assistance to those in need.
B. REFLECTIONS ON HOARDING RELATED TO COUNCILS

Regardless of the source of its income, a Council needs to start by asking if and why it is amassing funds. The following are guidelines and principals that should govern the use and accumulation of funds by Councils:

  • If the Council operates a Special Work, then it should consider having a reserve to operate that Special Work based on the expenses normally incurred over a period of time designated by the Council Board.
  • If the Council has employees or fixed expenses such as rent and utilities, then it should consider having a reserve to cover the expenses normally incurred over a period of time designated by the Council Board.
  • The Council should, as part of its annual budgeting process, set aside funds to share with those Conferences that have inadequate funds to meet the needs which they face to help people in need.

Hoarding occurs when a Council decides to keep funds in its financial instrument instead of using the funds as they were originally defined or to advance the purposes of the Society.

The fact is that once the Council in its Special Works decides that the request for direct assistance is legitimate and it has the resources to fulfill the request, then deciding to keep the money in the bank is the wrong decision.

There are Councils that do not have Special Works who use their funds to support the Conferences: training materials, running Ozanam Orientations or other workshops, holding days of recollection for spiritual growth, sending members to regional and national meetings, etc.   This spending fulfills the purpose of the Council and is not susceptible to hoarding unless the Council simply sits on the money.

It is wrong for a Council to decide to NOT use funds for the purpose for which they were donated. There are certain circumstances that may occur that would prevent a Council from using funds accumulated for a specific purpose. An example of this is the case of a Council collecting funds for a particular disaster in its area. If, after a period of time, funds are no longer needed to address the effects of the disaster, but the Council still has funds on hand, there are three ways to resolve the unused designated funds:

  1. The remaining funds may be returned to donors;
  2. The donors may be contacted to redesignate the use of those funds; or
  3. If it is not practical to contact donors, State laws vary and local legal counsel should be sought before taking action; but generally, UPMIFA (Uniform Prudent Management of Institutional Funds Act) requires the nonprofit to provide written notice to the Attorney General of the State and wait 60 – 90 days, and then only if the restriction is deemed:
    1. Unlawful, impractical, impossible to achieve, wasteful,
    2. The amount is less than the amount defined by the State,
    3. The fund is more than 20 years old, and
    4. The charity uses the fund in a way that is consistent with the charitable purpose of the donor restriction.

Other releases of restrictions will require a Court Petition.

C. STEPS TO BE TAKEN WHERE A COUNCIL HAS ACCUMULATED EXCESS FUNDS

Here are some examples of things Councils may do if they have accumulated excess funds:

  • The Council should set aside funds to share with those Conferences that have inadequate funds to meet the needs which they face to help people in need.
  • A Council can reflect and discern on whether they ought to direct additional funding, towards achieving various goals set forth in Standards of Excellence Questions for Diocesan Councils.
  • If a Council has additional funds, then it should look for ways to help the Society and its members through the Disaster Services Corporation, international twinning, domestic twinning with Councils in need of financial help.
  • Reviewing its programs and considering the need for starting new non-income producing Special Works such as through an evening or lunch meal program, a Coming Together to Getting Ahead program, or the like.

Special Note:  The National Governance Committee invites you to a webinar titled “Hoarding – What It Means” to be presented by Committee chair Mike Syslo on Monday, July 10, at 6:30 p.m. Central Time. The presentation centers on the content of the definitive Governance document on Hoarding published this week and last in Frederic’s e-Gazette. The various concerns related to types of funding received by Conferences and Councils will be addressed. Discussion and Q&A will be included. We think this informative session on a very important topic will be well worth your time.

Appendix: Hoarding in SVdP Documents

In the Rule, Part I, Article 3.14:

  • Nevertheless, the Society uses money and property to help relieve the suffering of those in need. The Society’s funds must be handled with the utmost care, prudence, and generosity. Money must not be hoarded. Decisions regarding the use of money and property are to be made after reflection in the light of the Gospel and Vincentian principles. Accurate records must be kept of all money received or spent. The Society may not allot funds to other organisations, except occasionally for other branches of the Vincentian Family, save under exceptional circumstances.

In the Rule, Part III, Statute 24:

  • Councils and Conferences zealously manage and maintain the Society’s assets. The authority to manage the Society’s assets remains exclusively with Councils that may delegate this authority in accordance with the Rule of the Society and the Bylaws and Resolutions of the National Council.
    Faithful to the spirit of non-accumulation of wealth, the next higher Council may determine annually the percentage of the funds of each Council or Conference within their area that may be made available to them. The next higher Council will work with the Council or Conference to determine an appropriate reserve for unanticipated events and direct the allocation of funds which exceed the anticipated demands, which may not be hoarded as a capital sum, to the service of the poor in their own area or abroad in the poorest areas of the world.

In Manual, under Council funds:

  • Sources of Council funds may include contributions from Conferences, donations, bequests, Special Works, and grants. Like Conferences, Councils act as custodians of funds given to the Society, understanding that they belong, ultimately, to the poor. While some Councils prefer not to accumulate funds, others make a point of setting something aside for exigencies. Operating an active Council with a reasonable bank balance is good business practice, not hoarding. A bank balance equal to the operational cost of the Council for six months may be reasonable. A balance of less than three months’ operational cost may be unhealthy. Councils with inadequate balances should review the budget for ways to increase their income or reduce their expenditures. Councils with overly large balances should find ways to expend their excess funds on behalf of the poor, such as subsidizing active Conferences in poorer areas or planning needed Special Works.

In Manual, under Funds of the Conference:

  • It is wrong for a conference to seek financial security by building up a large balance for the needs of the future. Conference balances generally should not exceed what they expect to spend during an average quarter. Surplus funds should be shared generously with more needy Conferences or the Special Works of the District Council.

In Bylaws, Document 1 for Conferences Without a Board of Directors, Article 16:

  • Conferences and Councils zealously manage and maintain the Society’s assets. The authority to manage the Society’s assets remains exclusively with Councils that may delegate this authority in accordance with the Rule of the Society. Faithful to the spirit of non-accumulation of wealth the Upper Councils may determine annually the percentage of the funds of each Conference within their area that may be made available to them. The Upper Councils will work with the Conference to determine an appropriate reserve for unanticipated events and direct the allocation of funds which exceed the anticipated demands, which may not be hoarded as a capital sum, to the service of the poor in their own area or abroad in the poorest areas of the world.

In the Conference Audit Manual, under Bank Account:

  • Every Conference is required to maintain its bank account(s) separate from the parish and separate from the personal accounts of any of the members. There shall be no co-mingled funds. The funds of the Conference must be in standalone accounts not tied to the parish or any of the members. The only exception to this is when a Conference has an approved reserve account. To avoid any perception of hoarding, the reserve accounts should be approved by the next upper Council. The funds in the reserve may be combined into a shared investment account as long as the Conference has sole access to its funds.

In Resolution 114:

  • Be it resolved that legal issues which involve one Council or one Conference have the potential for affecting the whole Society and therefore if not addressed will lead to the suspension and removal from the Society of the offending Vincentian, Conference or Council if not corrected in a timely fashion.  Such legal issues include but are not limited to the following:
    • Violation of any state statute, local ordinance, or federal law or any regulations adopted by any state, local government, or federal agency which violation relates to the operation of not-for-profit organizations.
    • Failing to conduct an annual audit.
    • Failing to file a Federal Form 990 or any required state form.
    • Adopting Bylaws that have not been updated to comply with federal requirements
    • Giving funds to non-Vincentian organizations or for non-Vincentian activity.
    • Failing to submit required annual reports
    • Failing to allow women or minorities as Conference members
    • Maintaining large balances that do not constitute legitimate reserve for future operations and which constitute hoarding,
    • Failing to enact Bylaws that are in compliance with those approved by National Council
    • Failing to make home or similar visits in pairs – i.e., allowing only one Vincentian to make such visits
    • Having officers who are not active members of the Society
    • Limiting assistance to certain groups to the exclusion of others
    • Acting in an autonomous manner and as though not answerable to the Society
    • Changing Bylaws to permit activity contrary to The Rule of the Society
    • Removing members without complying with The Rule of the Society
    • Violating confidentiality of those being served
    • The failure of National Council Members to attend National meetings
    • Raising funds across Council boundaries without permission and without adequate disclosure to the public
    • Any other issues having legal implications.

 

  • Jill Pioter

Retaining Your Members (Part 2)
Retaining Your Members (Part 2) 2560 1802 Jill Pioter
  • 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 burnout. 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 and 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 insure 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 neighbors 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. That 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. That they cannot help a family with rent without the approval of the Conference which meets sometime down the road;
      3. That 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.
    Burnout 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 80s and even 90s 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.”

  • Jill Pioter

10 Reasons To Love High-Performing Nonprofit Boards
10 Reasons To Love High-Performing Nonprofit Boards 1200 628 Jill Pioter

By: Alyce Lee Stansbury/Notes on Nonprofits

This description of nonprofits from the National Council of Nonprofits is one of my favorites: “Nonprofits are not just organizations; they are the face of our communities. They protect, feed, heal, shelter, educate, and nurture our bodies and spirits. Nonprofits give shape to our boldest dreams, highest ideals and noblest causes, and turn our beliefs into action.”

Here are 10 sweet reasons to love high-performing nonprofit Boards:

  1. Take work seriously: They are led by volunteers who take Board service seriously, arrive at meetings on time, and come prepared to discuss important issues. They do not want to listen to reports about things that have already happened, which is a waste of everyone’s time.
  2. Strategic plan: Adopt a strategic plan and use it to guide the Board’s work including meeting agendas, committee structure, and fundraising.
  3. Self-assessment: Regularly evaluate their performance by conducting a Board self-assessment and make it a priority to learn more about effective nonprofit governance.
  4. Recruit with focus: Recruit new Board members with intention and focus, and adopt a list of Board member expectations that includes attendance, committee service, personal giving, strategic planning, participation in fundraising to share with prospective members.
  5. Executive Director evaluation: Conduct an annual evaluation of the Executive Director that includes a documented process for awarding raises or bonuses and investing in their professional growth.
  6. Build relationships: Understand an important part of their job is building and deepening relationships between the nonprofit and donors, sponsors, members, volunteers, elected officials and other key stakeholders.
  7. Donor stewardship: Take donor stewardship seriously and routinely write thank you notes, call donors to say thank you, and personally patronize the businesses who support the mission and fundraising events.
  8. Promote mission: Recognize the importance of advocacy and promote the mission in the community on a year-round basis. This includes introducing new people to the organization, connecting the ED to people within their sphere of influence, and seeking out opportunities to tell more people about the organization and its important work.
  9. Technology: Invest in technology and use data to inform decision-making in all areas including programs, fundraising, finances, facilities, and strategic planning.
  10. Term limits: Adopt and abide by term limits, recognize serving as Board chair requires the highest level of commitment, a unique skill set, and should be carefully selected rather than falling to someone who missed the meeting or has simply been here the longest. High- performing Boards understand you have the Board you cultivate.

Notes on Nonprofits is produced by Alyce Lee Stansbury, CFRE, President of Stansbury Consulting, and includes resources, responses to reader questions, guest columns, and timeless topics. Please send your comments and questions to notesonnonprofits@gmail.com.

  • Jill Pioter

Society of St. Vincent de Paul Bylaws — What They Are and Why They Matter
Society of St. Vincent de Paul Bylaws — What They Are and Why They Matter 1200 628 Jill Pioter

The original Bylaws presentation was developed and presented by John Berry, SVdP National President-Elect. This article was written by Mike Syslo.

The Boring Stuff

What are Bylaws: Bylaws are a nonprofit’s operating manual. Bylaws (or Bylaws and Articles of Organization) are the main governing document for a nonprofit organization. They are the main official documents of an organization, nonprofit or for-profit. One of the important things to remember about Bylaws is that the operations of your organization must be in line with what you say they are in the Bylaws and Articles.

The purpose of the Bylaws is to guide the nonprofit Board’s actions and decisions. They are helpful in preventing or resolving conflicts and disagreements. They can protect the organization from potential problems by clearly outlining rules on authority levels, rights and expectations.

If the Board of Directors fails to follow the Bylaws, it can be held liable for breaching its duty to the organization.  Breach of duty can cause a significant liability for the Board of Directors.  Breach of duty can also result in the organization losing its nonprofit, tax-exempt status. The loss of nonprofit status would mean a loss of tax deductibility for donors and the need for the organization to pay taxes on their income.

“Bylaws determine how an organization is structured.   For example, most Bylaws specify whether an organization has members, define the duties of officers and Board members, and identify standing Board committees. An important function of Bylaws (if this matter is not covered in the Articles) is to specify how Board members are selected.” (BoardSource)

What About the Rule?

All groups require rules for effective operation. Our Rule is drawn from the lives and experience of all Vincentians throughout the world. It describes the elements that are needed to maintain the unity of the Society.  There is no group or organization that exists without some set of rules.

In 1835, two years after its founding, the Society formulated its Rule, a series of Articles based upon the practical experiences of the first Vincentians. The Rule of the Society has continued as the guide and blueprint for the Society for the past 188 years. This, alone, is a tribute to its efficacy and to the Holy Spirit who inspired it.  The Rule has gone through a few modifications over those many years, but the essential spirit of the Society that is reflected in the Articles and Statutes is the same as in the first Rule.

Bylaws and the Rule: The Relationship 

Bylaws are significant written rules by which an organization is governed. They determine how the Society of St. Vincent de Paul is structured and, along with state law, determine the rights of participants in the structure.

Membership in the National Council of the United States, Society of St. Vincent de Paul, Inc. requires that every organizational unit (Conference and Council) have Bylaws.  Prior to 2003, the Rule included both the philosophy of the Society and its structure and responsibilities.  Since 2003, philosophy has been in the Rule and the structure and responsibilities have been in the Bylaws.  Having the original format of the Rule split into two separate documents has caused the need for all Conferences and Councils to adopt a set of Bylaws and operate in accord with both Rule and Bylaws.

Conferences and Councils must maintain their Bylaws (including any and all amended articles) in updated and amended form. The Conference or Council must keep a copy of their Bylaws together with the Rule document (The Manual 1.3).  In addition, the next higher Council should have a copy of the Bylaws.  For example, a District Council should have a copy of the Bylaws of each of its Conferences.  The Diocesan Council should have a copy of the Bylaws of each of its District Councils.

The Rule is the paramount authority of the Society of St. Vincent de Paul. Should any bylaw, rule or regulation adopted by a Conference or Council conflict with the Rule and statutes of the Society of St. Vincent de Paul as now promulgated or hereafter adopted by the Council General International or the National Council of the United States, such bylaw, rule or regulation shall be void and of no effect (The Manual 1.3).  This needs to be very clear in everybody’s mind.  You cannot put anything into the Bylaws that in any way conflicts with the Rule or Nationally Approved Bylaws.  If a conflict exists, the Bylaws will be rejected by the next higher Council; and you may not proceed with them.

BUT – Bylaws have been created to be used by SVdP entities across the country and as such do not include language that may be required by your state and local law (see listing of multiple versions of Bylaws on page three).  It is strongly advised that legal advice be sought from a local attorney concerning matters such as the following:  non-discrimination policy language, tax-exemption requirements, and any other areas of the Bylaws in which modification of the language is necessary in order to be in alignment with applicable state and local law.  As of this date, we have not found anything of substance in the Nationally Approved Bylaws that conflict with state and local law.

Since the Bylaws have been developed to be in conformity with the Rule of the Society, Bylaws should be modified only to address alignment to state and local law (Bylaws Introduction, SVdP USA).

Where Did Our Bylaws Come From? 

In 2003, the Council General International approved an updated version of the Rule of the Society.  Each separate Superior/National Council was invited to draft their own Part III of the Rule to define the items of the Rule that are unique to each country.  This new version of Part III of the Rule for the United States was different from the former Rule in that details of structure and governance were removed.  Those details were then placed in Bylaws which varied with each type of SVdP structure within the United States.  Placing the structure and governance concerns of the Society into a separate document has forced Conferences and Councils to adopt an appropriate set of Bylaws for their use.

The Bylaws documents were approved by the National Council Members at the Society of St. Vincent de Paul’s 2005 Annual Meeting and have been revised as needed (last in 2021) so that good governance policies are in place and are in compliance with:

  • The Rule of the Society,
  • The Charter of the Society (a.k.a. Articles of Incorporation),
  • Bylaws of the National Council while leaving flexibility for compliance with national and state laws that govern charities.

How Many Kinds of Bylaws Are There for Councils and Conferences?

Because of the possible structures that exist for unincorporated and incorporated Conferences and Councils, multiple versions had to be created.  There is one set of Bylaws for the National Council and three sets of Bylaws to choose from for each Conference, District Council and Diocesan Council.

  • BYLAWS for Conferences without a Board of Directors
  • BYLAWS for Conferences with a Separate Board of Directors
  • BYLAWS for District Councils with a Separate Board of Directors
  • BYLAWS for Archdiocesan/Diocesan Councils with a Separate Board of Directors
  • BYLAWS for the National Council
  • BYLAWS for District Councils with an Integrated Board of Directors
  • BYLAWS for Archdiocesan/Diocesan Councils with an Integrated Board of Directors
  • BYLAWS for District Councils without a Board of Directors
  • BYLAWS for Archdiocesan/Diocesan Councils without a Board of Directors
  • BYLAWS for Conferences with an Integrated Board of Directors

Why Do We Need These?  Let’s Just Follow the Rule.

Because Bylaws may be cumbersome, they are frequently neglected or even disregarded as a tool for governance.  They are, however, essential to maintaining order and propriety within the organization.

SVdP governing entities must pay careful attention to Bylaws. They can take on added importance during governance disputes centering on the way an organization is carrying out its mission.  These disputes can take many forms:

  • A non-conforming entity needs dissolution.
  • A Board member who is voted out of office seeks reinstatement.
  • A dissident group within the organization attempts to gain control or a faction mounts a legal challenge to a Board decision.

In these difficult situations, carefully-crafted Bylaws, and adherence to them, can help ensure the fairness of governance decisions and provide protection against legal challenges.

Bylaws determine how SVdP is structured. Bylaws specify whether an organization has members, define the duties of officers and Board members, and identify standing Board committees.

An important function of Bylaws (if this matter is not covered in the Articles of Incorporation) is to specify how Board members are selected.  This, along with the specification of the maximum number of Board members, determines how workable as a team the governing body is.

Bylaws, along with state law, determine the rights of participants in the structure, such as the rights of members to be notified of meetings, the rights of Board members or officers whom others may want to remove from office and the rights of Board members to indemnification.

Bylaws determine many procedures by which rights can be exercised.   For example, Bylaws may require a certain form of notice for meetings, or they may specify whether Board meetings can be held by telephone or whether elections can be conducted by mail.  Other procedures defined in Bylaws pertain to the election/selection of officers.

The Fun Stuff – Some Real Situations

  1. The Board of the Diocesan Council, in putting together its slate of officers for the next year has asked Christi to serve as Vice President. Christi has been on the Board for the last three years and they all think she’d be a good fit for the VP job. Christi started volunteering with SVdP when her Church, United Methodist, partnered with the Council on their Food Pantry.
    • Bylaws issue or Rule issue?

This is both a Bylaws issue and a Rule issue.  Christi is non-Catholic and cannot serve as an officer.  The President of the Diocesan Council appoints the officers after consultation with the District Presidents – not the Board.

  1. Christopher was just elected as President of the Council. He has never gotten along with Gracie, the ED; so right after he is installed as President, he fires her and puts Jake in the job.
    • Bylaws issue or Rule issue?

This is a Bylaws issue.  It is the responsibility of the Board of Directors (not the President) to hire and fire the ED/CEO.

  1. The new President of the St. Frederic Ozanam Conference presents his new officers to the Conference at his first meeting. Tom raises an objection to the new Treasurer and Secretary and says he will not support them. Others in the room agree.
    • Bylaws issue or Rule issue?
    • Bonus issue!

This is a Bylaws issue, a Rule issue and an Aggregation issue.  The President appoints the officers after consultation with the Conference.  “Consultation with” does not mean “approval by.”  The President may decide that the objections are not sufficient for a change in choice.  The Conference must work as a team and refusing to support the officers is not an option.    Also, it may have been overlooked, but Frederic Ozanam has not yet been canonized – he is Blessed Frederic.  In addition, unless the parish in which the Conference resides is named for Frederic Ozanam, Conferences are prohibited from having his name.  The same holds true for “St. Vincent de Paul.”

  1. At the regular second meeting of the month, Katie, a member of the St. Mary’s Conference and a member of the parish staff, tells the Conference members that the Church’s A/C system has broken and it’s going to cost the parish $60,000 for a replacement system. The Conference President suggests that the Conference use $10,000 from its bank account to ‘help the parish defray the cost’.
    • Bylaws issue or Rule issue?

This is a Rule issue.  Conferences and Councils are prohibited from giving donations to (and this includes raising funds for) outside organizations no matter how worthy the cause may be.  The parish is an outside organization.  The funds of the Society must be used for the purposes of the Society.

In Summary

Because your Conference or Council uses the National Council’s trademarked name “Society of St. Vincent de Paul” with the express permission of and a limited license issued by the National Council, the Bylaws adopted by your Conference or Council must be formally approved.

Conferences must have their Bylaws approved by their District Council.  The District Council Bylaws must be approved by the Archdiocesan/Diocesan Council.  Archdiocesan/Diocesan Council Bylaws must be approved by the National Vice President for the Region.

  • Jill Pioter

03-23-2023 Questions and Answers
03-23-2023 Questions and Answers 1200 628 Jill Pioter

Q:  Are all three levels of membership eligible for the Top Hat Award? Is the ‘spirit’ of the Top Hat Award to nominate someone who is an Active or Associate Member, but not necessarily someone who is a Contributing Member?

A: The Top Hat Award is a local award given by the local SVdP Council, who decides the requirements and eligibility for the award. The National Council has no guidelines for this award and does not determine which membership level is eligible to receive it. This is a decision solely for each local Council. Also, since the Rule was last amended in 2018, it no longer recognizes Contributing Members, but only Active and Associate Members.”

Q: Can our Council Thrift Store consider hiring individuals with criminal records? There are some obvious instances like a pedophile, or sexual abuse convictions that we perhaps should prohibit, but how do we give an individual a second chance for less offensive convictions? What is the Society’s position on hiring practices for these individuals? 

A:  Before creating a hiring policy or creating a Safeguarding policy, check with a local employment attorney. There are locations where you are not allowed to discriminate based on criminal record (even pedophiles), unless it is a job-related offense. There have been cases of high damages won in some cases when there was never a chance of the employees having contact with children. Having a written policy could actually be used as evidence of intent to discriminate. These are decisions made by local SVdP Councils and Conferences under our principle of subsidiarity. Many of our Councils offer services for returning citizens, including employment training and placement services, so we should consider our own hiring practices as a matter of example. The Safeguarding Task Force has produced a Policy Assistance paper to help Councils (and as needed, Conferences) develop their own Safeguarding policy, a recognized priority of the National Council. Click here: https://members.ssvpusa.org/news/national-safeguarding-policy-help/.

Spanish Translation

P: ¿Los tres niveles de membresía son elegibles para el Premio Sombrero de Copa? ¿Es el “espíritu” del Premio Sombrero de Copa nominar a alguien que es un Miembro Activo o Asociado, pero no necesariamente alguien quien es un Miembro Contribuyente?

R: El Premio Sombrero de Copa es un premio local otorgado por el Consejo local de SVdP, que decide por qué está otorgando dicho premio. El Consejo Nacional no tiene pautas para este premio y no determina qué nivel de membresía es elegible para recibirlo. Esta es una decisión del propio Consejo local. Además, el Consejo Nacional ya no reconoce a los Miembros Contribuyentes por separado.

P: ¿Debería o puede nuestra tienda de segunda mano del Consejo considerar contratar a personas que tengan antecedentes penales?  Hay algunos casos obvios como un pedófilo, condenas por abuso sexual que tal vez deberíamos prohibir, pero ¿cómo le damos a un individuo una segunda oportunidad para otras condenas menos ofensivas? ¿Cuál es la posición de la Sociedad sobre las prácticas de contratación para estas personas?

R: Antes de crear una política de contratación o crear una política de protección (salvaguardia), verifique con un abogado laboral local. Hay lugares donde no se le permite discriminar basado en antecedentes penales a menos que sea un delito relacionado con el trabajo. Esto incluye incluso a los pedófilos y ha habido casos de altos daños ganados en algunos casos cuando nunca hubo una posibilidad de que los empleados tuvieran contacto con menores de edad. Tener una política escrita podría usarse como evidencia de la intención de discriminar. Estas son decisiones tomadas por los Consejos y Conferencias locales de SVdP bajo nuestro principio de subsidiariedad.  Muchos de nuestros Consejos ofrecen servicios para los ciudadanos que regresan (de prisión), incluida la capacitación laboral y los servicios de colocación, por lo que debemos considerar nuestras propias prácticas de contratación como una cuestión de ejemplo. El Equipo de Trabajo de Salvaguardia ha elaborado un documento de Asistencia en Materia de Política para ayudar a los Consejos (y, según sea necesario, a las Conferencias) a desarrollar su propia política de salvaguardia, una prioridad reconocida del Consejo Nacional. Haga clic aquí: https://members.ssvpusa.org/news/national-safeguarding-policy-help/.

  • Jill Pioter

So You’ve Been Elected President…
So You’ve Been Elected President… 1200 628 Jill Pioter

Thank you for sharing your time and talents with fellow Conference and Council members as well as those in need. As with all involvement in the Society, we hope your work as a Vincentian servant leader will lead you to greater faith, an increased desire to serve and stronger friendships.

Do you feel some anxiety about taking on a Vincentian leadership role? Let’s take a look at a few common myths behind that anxiety.

Myth #1: You need to know everything now.

No Vincentian has taken a leadership role already knowing everything; to be honest, no current Vincentian leader knows everything now. What most Vincentian leaders do learn is where to look to find information, where the resources are and who in the Society has experiences and wisdom to share.

Truth #1: You will learn and grow during your time as a Vincentian leader.
Myth #2: You are now in charge of everything.

A Vincentian leader is a servant leader who understands the role of God’s providence. Your ultimate role is to harness the gifts and spirit of your members and direct them to growth in holiness and increased love for one another, and in ways of service to others. To do this you will need to allow God to direct you.

Truth #2: God is in charge of everything. You are called to discern where God is leading and to follow through — and help your members do the same.
Myth #3: You are all alone in figuring things out.

This myth could not be further from the truth. The Society is truly a global network of charity. Fellow Vincentians in 155 countries are serving those in need, as you are, and desire to do so with love and in an effective manner. As you attend regional and national gatherings, or reach out to other Vincentian leaders, you will find that many people are more than willing to share their knowledge. You will only feel all alone if you do not participate in such interactions and relationships.

Truth #3: Most Vincentian leaders love to talk about their experiences and help each other.

We will share useful information relevant to your new responsibilities in these Frederic’s e-Gazette articles in the coming weeks. Reach out to other Vincentians — even if they are not from your area — for advice and support. Thank you for being willing to serve through leadership, and may you be blessed through your witness of following God’s lead in your Conference’s/Council’s service while encouraging others to do the same.

We remind you of the valuable resources on the National website and urge you to review the Governance Page, where the Governance Training DVD and the other material the National Governance Committee has prepared can be found. Then make plans to use these tools. Your Conference and Council will be better off if you do so.

  • Jill Pioter

Conference Collaborations — Enhancing Our Network of Charity
Conference Collaborations — Enhancing Our Network of Charity 1200 628 Jill Pioter

In August of 1833, Leon Le Prevost, a member of the first Conference who later went on to establish the Religious Order of St. Vincent de Paul, wrote: “In this moment there is a great movement of charity and of faith…” The same could be said of our time and our place in this world. Although we are often distracted by negative forces, influences and movements, we must never lose sight of the hearts of our non-Vincentian brothers and sisters who like us long to help others. We witness that concern and compassion flow out of the actions of individuals, families, corporations, faith-based groups and civic organizations as they respond to natural disasters and other large-scale tragedies.

From the very early days of the Society, our founders understood the need to work collaboratively with the government and other organizations in order to better assist the poor and suffering. In December of 1833, the first Conference accepted the role of “Commissioners of Charity” for the administrators of the La Bienfaisance neighborhood. While our present-day Councils often enter into collaborative agreements and relationships, our local Conferences tend to function primarily in cooperation with other Conferences and Councils, seldom reaching out to other groups in their local area.

If Conferences are isolated and do not interact and cooperate with other local faith-based groups and charitable organizations, we are overlooking resources including potential volunteers who can assist us in providing assistance to our neighbors in need. By joining forces we not only increase our ability to help others but we also engage the community and provide others with the opportunity to be actively involved in helping those in need. Additionally, our outreach efforts help spread knowledge about the Society and our mission of charity and love.

On the Conference level, most collaborative relationships do not require a formal contract but more of a mutual understanding based on agreement in protocols and policies. Identifying groups in your area should be the starting point followed by outreach and relationship-building. Such relationships should start by sharing with the group’s leaders or members our history and mission, as well as letting them know how we currently serve those in need in our community.

The process must include a two-way conversation that provides us with an understanding of who they are and how they currently serve the community. Once that relationship is built, we can begin a conversation on how we can work together to benefit the needy, always keeping in mind that we can only function within the Rule of the Society. Just as we honor who they are and their procedures and guidelines, they must honor ours. For example, potential collaborative partners need to understand early on we cannot share funds with them or any project that our members are not involved in through person-to-person contact with the poor.

When Frederic Ozanam helped to establish the Society, he envisioned a network of charity that would encompass the world. Vincentians are only part of that network. Our vocation calls us to reach out and serve beside other people of goodwill to help relieve poverty and injustice. By reaching out to them we can enhance the work of our Conferences and provide opportunities for them to join us in service to the least among us.

Such collaboration can make a huge difference. Ask yourself, “How can our Conference build relationships with other groups and churches?” With the help of others, we can do more and experience the love of Christ in those whom we serve and in those whom we serve beside.

  • Jill Pioter

A Time For Thanks
A Time For Thanks 1200 628 Jill Pioter

At this special time of the year when our thoughts turn to giving thanks, it is appropriate to reflect on the many reasons Vincentians have to be grateful.

Perhaps the two most important are the ongoing guidance of Divine Providence, which has been wondrously at work on behalf of the Society of St. Vincent de Paul during the past 189 years, and the constant inspiration of the Holy Spirit evidenced so beautifully by the way Vincentians respond every day to the challenges we face in serving Christ’s beloved poor.

We are privileged to participate in the perpetual miracle of our Society:  Ordinary people doing extraordinary things which restore hope to those who have none and change their lives for the better.  Our countless benefactors, whose generosity makes it possible for us to help so many people in so many ways, deserve our gratitude as well.

On the most personal level, going to the essence of Vincentian spirituality, we should be thankful to those we serve for the blessings they bestow on us which transform our own lives.

Very importantly, we have each other, truly something to cherish.  Loving and supporting one another while helping the poor is an integral part of our mission.

Vincentians have been graced by God to be members of one family throughout the world living Blessed Frederic’s divinely inspired vision of a global network of charity and social justice.  We should thank God for our Vincentian vocation, a blessing of eternal value.

And, ultimately, how blessed we are with the gift of faith, and in that faith Christ’s greatest gift – the Eucharist.  How fitting it is that “eucharist” means “gratitude.”

(The series of excerpts from Vincentian Life: Council will resume next week.)

  • Jill Pioter

Governance — A Council’s Job One: Serve the Conferences
Governance — A Council’s Job One: Serve the Conferences 1200 628 Jill Pioter

Monitor Special Conditions
The following special conditions should be monitored regularly and addressed as necessary.

1. Conference President’s term of office is limited to two consecutive three year terms. After the two terms, the President must be out of office for at least three years before being elected once again. Technically, as soon as the six years expires, the President is no longer in office and the Conference operates under the leadership of the first Vice President until the election of a new President takes place. In the case of violation of this rule, the Council must ensure that an election is held to replace the outgoing President as soon as possible.

2. Each Conference is to have at least four officers: President, Vice President, Secretary and Treasurer. Each office must be held by a separate person. No one person may hold multiple officer positions. In addition, Statute 12 of Part III of the Rule indicates that a President may not appoint his/her spouse or other closely related individual to an officer position.

3. Service area comes into conflict often within the Society. The District Council should ensure that Conferences provide service only to those people living within the boundaries established for the Conference. These boundaries should be established as a formal agreement between the Conferences in the Council. In some cases, the boundaries will simply be the parish boundaries. In other cases the boundaries may be more extensive, as long as they are agreed upon by the Council. This way, people seeking service cannot simply go from Conference to Conference seeking help. The Conference covering the area where that person or family lives is the one that makes the decision as to help or not help.

Voice / Vote in the Council
Conferences should have a voice in every major decision. No Voice, no Vote, no Vincentian will be at the meeting or activity. It is important that every Conference is represented at the District Council and that the Conference President (or his/her designated representative) is there to speak for them.

Most Council bylaws have a clause that will remove a Conference President from Council membership/voice/vote if the President misses a certain number of meetings. This removal is a tragedy for the Council, the Conference and the people we serve.

Up-to-Date
Conferences should be aware of all conditions and circumstances both local and global that will impact them or the Council. Conferences should be especially aware of any major situation that threatens the well-being of the Council. Therefore, it is an obligation of the Council to keep the Conferences well-informed and in a timely manner.

The Council should strive to develop a fabric of communication. One that goes up and down the normal channels but also goes sideways from Conference to Conference and from Vincentian to Vincentian. A strong fabric of communication will strengthen the Council and avoid the problems of it relying on a few people to make it run. If those few leave the Council for any reason it can take weeks or months to learn all that needs to be known on how the Council operates. A fabric of communications creates an informal communications network that helps keep the members informed.

Help in Council Efforts
Conferences should be involved in a regular and frequent basis in the operation of the Council. This can be accomplished by involving them as Council Members, as volunteers, as committee members, on special projects, on fund raising, in special works, in general membership meetings, and in every other way that may be appropriate.

  • Jill Pioter

Resolve to Focus on Good Governance
Resolve to Focus on Good Governance 1200 628 Jill Pioter

A new fiscal year for our Society will start soon and this is a good time to remind ourselves that loving and supporting one another while serving the poor is an integral part of our Vincentian mission.

Our Conference meetings are where we help each other fulfill that mission of growing spiritually, developing friendships and having face-to-face encounters with those in need.  Meeting at least twice monthly as we should provides the opportunity to continually strengthen those supportive relationships.

Our Councils have a Board of Directors to guide our efforts and oversee our performance.  We challenge you to realize that even the best Councils and Conferences can be better and more effective. Our Council Boards and our Conferences should always seek to foster and facilitate improvement.  Given the importance of good governance, perhaps this should be your primary resolution for this new year.

Why not start using your Council Board as a support group to review and update your policies and procedures and clean up your record-keeping?  Encourage your Conferences to do likewise.

Review your Bylaws. This is a document that spells out your mission, how you operate procedurally and the need for compliance with IRS requirements for nonprofit organizations. They are not meant to be inflexible when circumstances signal a need for revision.  Assess your programs to see if they remain relevant and are operating efficiently with the right priority. Take a good look at how your Special Works impact all Vincentians in all of your Conferences. Look at your succession planning.  It is of vital significance at all levels of our Society.  If your operating procedures, which are a key part of good governance, need changing, take advantage of the Governance Training materials provided for you by our National Council.

Throughout the year the National Governance Committee will address some of these important matters further in Frederic’s e-Gazette.  We urge you to read that information and resolve to enhance your effectiveness.  In so doing you will be heeding the exhortation of Blessed Frederic Ozanam to always seek to be better in our service to Christ’s beloved poor.

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