Financial Secretary Handbook - Knights of Columbus, Supreme ...

MEMBERSHIP TRANSACTION DESCRIPTIONS
(COLUMN 3)
Associate to Ins —Associate to Insurance
Disability Exempt —Disability Exempt Status
Honorary Memb —Honorary Membership
Honorary Life —Honorary Life Membership
Ins to Associate —Insurance to Associate
Juvenile to Adult —Juvenile Insured Initiation
Member Adjustment —Membership Adjustment
Member Death —Member Death
New Member —New Member Initiation
Notice of Intent —Notice of Intent to Suspend
processed
Reactivation —Member Reactivation
(inactive insurance only)
Readmission —Member Readmission
(3 months to 7 years)
Reapplication —Membership Reapplication
(over 7 years)
Reinstatement —Membership Reinstatement
(up to 3 months)
Suspension —Suspension/nonpayment
Suspension/Board —Suspension/Board action required
for return
Transfer
—Member Transfer
Withdrawal —Member Withdrawal
Councils are assessed $1.75 for per capita tax and $.50
for Catholic Advertising each January 1 and July 1 on the
total membeship in the council including inactive and
honorary members. Honorary life and disabled members
are excluded from the assessment. Concurrently, councils
are also assessed $1.00 for the Culture of Life fund.
Honorary, honorary life, inactive and disabled members
are excluded from the Culture of Life assessment. On
occasion, the Board of Directors implements special
assessments for financing various worthy projects and
causes. Any such levies are additional.
Each month the grand knight receives his own
Membership and Financial Statement (Form #1189). It
is pictured on page 20. The report shows progress the
council is making in its membership/insurance programs.
The Financial Summary section indicates the
council’s financial standing in relation to the Supreme
Council. This statement is a condensed version of the
Council Statement received by the financial secretary.
In addition, the district deputy receives a monthly
report (#F049) similar to the grand knight’s except that
it contains information on every council in his district.
A District Deputy’s Report is shown on page
21. If a council is not meeting its financial obligations,
the district deputy is obligated to determine the reason
and urge the financial secretary to initiate payment to
avoid suspension.
ANNUAL FEDERAL INFORMATION RETURN—
FORM 990
All councils and assemblies in the United States are
exempt from federal income tax under the Internal
Revenue Code, Section 501(c)(8). A group ruling recognizing
the exemption was obtained by the Supreme
Council for itself and for its subordinate units. The
group ruling does not extend to home corporations.
All councils/assemblies file one of the following:
• 990N – Gross receipts of $50,000 or less
(electronic format only, available at www.irs.gov).
• 990EZ – Gross receipts over $50,000 and up to
$199,999.
• 990 – Gross receipts of $200,000 and over.
The Supreme Council insists that each such subordinate
unit carry out its responsibilities under this law.
Form 990 must be filed by the fifteenth day of the fifth
month after the end of your annual accounting period.
Failure to file three consecutive years will result
in a loss of tax exemption status.
In order to keep abreast of the current laws in these
matters, the Supreme Advocate will send a memorandum
to all U.S. councils and assemblies during the
month of February of each year.
RECORDS RETENTION
On occasion, financial secretaries inquire as to how
long council records should be retained. Be guided by
the following:
• Current member Form 100s (new members, reentry
transactions for members who did not join
through your council originally): 7 years
• Current member Form 100s (all except above and
data changes): 3 years
• Current member Form 100s (data changes):
verify processing at the Supreme Council
office, then destroy
• Former member Form 100s (all transactions):
verify processing at the Supreme Council
office, then destroy
• Financial and business records (e.g., bank statements,
contracts, purchase orders, invoices):
10 years
• Tax forms: 7 years minimum, 10 years recommended
• Correspondence: 3 years
In all cases, tax ID numbers—including the last four
digits—must be obliterated.
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