Understanding Knights of Columbus Home Corporations
Learn about the distinct entities of Home Corporations within the Knights of Columbus organization, their responsibilities, and the key differences from the main council structure. Discover information on legal matters, ownership of properties, liability considerations, emblem usage restrictions, and the importance of maintaining individual branding for Home Corporations. Explore the roles of State Advocates, Legal Affairs Committeemen, and available resources for district deputies and council officers to enhance organizational understanding and efficiency.
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Home Corporations January 13, 2024
Legal David Pels State Advocate (817) 988-3484; pelsd66@gmail.com Fort Worth Mikell West Legal Affairs Committeeman (361) 215-8487; mikellwest@gmail.com Corpus Christi Webster Veade Legal Affairs Committeeman (512) 905-5900; veade@cs.com Austin
RESOURCES FOR DISTRICT DEPUTIES AND COUNCIL OFFICERS Officers Online on Supreme Council Website www.KofC.org Officers Desk Reference (ODR) Home Corporation Handbook Your Diocesan Deputy Training sessions Chapter Meetings and Conferences
KNIGHTS OF COLUMBUS COUNCILS Subordinate Councils to the Supreme Council Conduct Supreme s charitable and fraternal mission Unincorporated associations holding charters from the K of C Have discretion to choose their meeting location Fr. McGivney s vision for parish-based Councils Strongly encouraged to meet at a local parish
HOME CORPORATIONS (HC) ARE SEPARATE ENTITIES Originally created as permanent homes for Councils Buying & owning realty for a permanent home Council halls; Columbus Clubs; KC Clubs; Independent legal entities Formed under applicable laws of jurisdiction where located
HOME CORPORATIONS (HC) ARE SEPARATE ENTITIES (Cont d) Not subordinate units of the K of C Not subject to the Charter, Constitution & Laws of the Order Solely responsible for all liabilities arising from the properties Solely responsible for all liabilities from activities conducted there
NAME AND EMBLEM ISSUES WITH HOME CORPORATIONS Knights of Columbus and K of C are registered trademarks of K of C Local Councils by charter have a limited license to use the trademarks HC do not hold a charter from Supreme HC not authorized to use the trademarks in their names or in marketing
NAME AND EMBLEM ISSUES WITH HOME CORPORATIONS HC must design its own unique brand HC brand must show that rental or other business is not K of C related That such is not a fraternal or charitable program of the K of C HC should avoid confusing or misleading branding Clear that K of C Council does not own HC real property or rental business
HOME CORPORATION DISPLAY OF K OF C TRADEMARKS If HC displays, must also display Council name, number, geographic location & days of month Council holds its regular meetings Examples: Knights of Columbus Fr. Michael J. McGivney Council 12345 Springfield, Missouri Meets on First and Third Thursdays
HC SIGNAGE MUST STATE NAME OF LEGAL OWNER OF PREMISES HC signage significantly more conspicuous than Council s signage Avoid impression that Council owns the property Example: Premises Owned and Operated by Columbia Club, Inc. HC liquor license must be displayed with HC name
GUIDELINES FOR DISPLAYING SUBORDINATE UNIT MEMORABILIA Council may display memorabilia on walls of HC it uses If HC rented to third party, memorabilia must be covered or removed HC cannot suggest that Council endorses the renter s event
TAX AND INSURANCE ISSUES HC not eligible for tax exempt status under the Order s IRS group ruling HC must apply for and obtains its own tax exemption HC eligible for tax exemption under 501(c)2 (title holding) HC also eligible under 501(c)7 (social club) HC must obtain its own tax ID No, file own tax return HC must arrange for its own liability insurance
RENTAL HALL ISSUES See Home Corporation Handbook in Officers Online HC rental and side businesses are not Council business K of C does not authorize, endorse or otherwise participate in business decisions relating to HC facilities K of C does not receive revenue from rental of HC facilities
BUILDING THE DOMESTIC CHURCH WHILE STRENGTHENING OUR PARISHES Supreme discourages HC as permanent homes for Councils OK if HC business does not conflict with mission and activities of K of C New Evangelization mandates move toward Parish-based Councils Do not expend valuable time and resources for the HC Such dilutes the K of C mission & displaces charitable works of the Council Should expend valuable time and resources for the Parish
ASSESSING THE RELATIONSHIP BETWEEN HC AND COUNCIL If Council experiences one or more of the following, it should move to a Parish: Whether the majority of a Council s time, resources, and attention are devoted to addressing the problems and concerns of the HC whose facility it uses Whether a HC s property tax, utility bills, insurance premiums, and other Expenses are so burdensome that it is forced to charge the Council a disproportionate rent or other fees that exceed market rents of similar facilities in the area
ASSESSING THE RELATIONSHIP BETWEEN HC AND COUNCIL (Cont d) Whether HC struggles to find suitable rentals to pay its expenses due to competition from modern professional banquet halls and hotel facilities Is local Council reputation more defined by HC business/activities Is there such strife, factionalism, and outright conflict among members re: the HC that principle of Unity is broken such that K of C mission cannot be carried out and new members cannot be attracted
SUPREME POLICY FOR COUNCILS USING HC Supreme has a policy requiring Councils using a HC to enter into written agreements Terms of Use Agreement: Council s use of HC facilities Charitable Distribution Agreement: settlement of matters if HC winds up its affairs Supreme expects Council officers and HC reps to act in good faith to clarify their relationship in order to promote the mission of the K of C
HANDBOOK FOR COUNCILS USING HOME CORPORATION FACILITIES Contain the Terms of Use and Charitable Distribution Agreements Neither Supreme nor TSC is a party to these agreements Provides practical guidance for various situations encountered with HC Guidance on transition from HC Council to Parish-based Council Avoid potential problems and address them when they occur Councils that continue to use HC facilities must implement the agreements ASAP and those will supersede any agreements that already exist
Legal David Pels State Advocate (817) 988-3484; pelsd66@gmail.com Fort Worth Mikell West Legal Affairs Committeeman (361) 215-8487; mikellwest@gmail.com Corpus Christi Webster Veade Legal Affairs Committeeman (512) 905-5900; veade@cs.com Austin
