Click to edit Master title styleFINANCIAL AND LEGAL MATTERS

1September 2015

Click to edit Master title styleStandards for Accounting• Conferences maintain records on people assisted.

• Conferences maintain receipts, ledgers and journals.

• Conferences acknowledge each donation of $250.00 or more

• Conferences may not accept donations "earmarked" for a particular person.

• All expenditures by the Conference should be paid by check, with proper supporting documentation.

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Click to edit Master title style• Assistance from a Conference must not be self-serving.

• Client information must be kept in the strictest confidence.

• Records must be kept in a secure location and their use maintained in confidence.

• Conferences should share summary information with its contributors and the parish community.

Standards for Accounting (cont’d)

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Click to edit Master title styleStandards for Accounting (cont’d)

• Money donated to the Society can only be used for Society

business

• Giving money donated to another organization must be

avoided.

• Surplus funds should be twinned

• Conferences should not hoard money

• Conferences needing funds should contact their District

Council.

• Conferences who do have an excess of funds should twin

domestically or internationally

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Click to edit Master title styleTax Exemption

• Councils and Conferences must have a 501(c)(3) Tax Exemption, either by:– from their District or Diocesan Council– their own 501(c)(3) , or – inclusion in the National SVdP Group

Exemption

• Coverage through the Church no longer applies

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Click to edit Master title styleNational Group Exemption

Applying to be in the National Group Exemption:

1.Must have its own EIN (cannot be the parish EIN)

2.If not, obtain EIN number in Conference name using the SS-4 form found on www.irs.gov .

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Click to edit Master title styleTax Filings

• Every Council or Conference with their own EIN must file a 990

990 Filing Instructions Form to File

Gross receipts of $50,000 or less 990-NGross receipts between $50,000 and $200,000And total assets less than $500,000

990EZor 990

Gross receipts more than $200,000 and/ortotal assets exceed $500,000

990

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Click to edit Master title styleLoss of Exempt Status

• Tax exempt status will be revoked for failure to file 990 for three years in succession

• If tax exempt status is revoked

– Must file a Form 1023 to gain independent tax exempt status

– Must pay a filing fee

– Cannot join or rejoin any group

• Loss of Council status affects Conferences as well

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Click to edit Master title styleLiability Concerns

Situations that may cause claims or lawsuits

• If Conferences not covered by the Council liability insurance, Conferences may get coverage through the National Group Insurance Program.

• Some claims may not be covered by terms of the insurance policy

– Some claims may be directly against individuals for their actions that do not fall under the insurance coverage of the Society.

– Anyone operating outside the rules and guidelines of the Society may not be protected.

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Click to edit Master title styleLiability Concerns (Cont’d)

• If an incident occurs, contact the District Council immediately. Late reported claims can be denied by the insurance company.

• DO NOT TRY TO NEGOTIATE A SETTLEMENT WITH A CLIENT (CLAIMANT).

• Call the police to all traffic accidents, period.

• Do not discuss any incident with anyone except the police, the Society's insurance carrier's representative or your own lawyer.

• Do not talk (or accept a phone call) from the claimant’s attorney or insurance company

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Click to edit Master title styleAvoiding Liability Concerns Common sense rules to avoid potential problems:

• Always operate within the rules and guidelines of the Society.

• NEVER HOME VISIT OR MEET A CLIENT ALONE.

• Use common sense when making physical contact with clients

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Click to edit Master title styleAvoiding Liability Concerns Cont’d

Common sense rules to avoid potential problems:

• All Vincentians must have their own vehicle insurance.

• Do not share clients' personal problems.

• Vincentians are generally not trained counselors

Keep members informed of Liability Concerns Keep members informed of Liability Concerns and Common Sense Rulesand Common Sense Rules

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Click to edit Master title styleQuestions/Comments

Questions/Comments13