Manual of the Society of St. Vincent de Paul in the United States

Tax Laws and Financial Records

To protect the Society in the civil arena, Conferences must know the federal and state tax laws that apply to them, have capable local counsel to determine what their obligations are, and assiduously meet these obligations. Under certain conditions, charitable agencies and organizations are required to file IRS Form 990. Many U.S. Councils do so. Penalties for noncompliance are cumulative and can be severe.

The American Institute of Certified Public Accountants (AICPA) has prepared statements of accounting principles and reporting practices for nonprofit organizations. Failure to adopt recommended methods could jeopardize community support, foundation grants, and eligibility for publicly-funded programs.

For the Society to maintain good standing before the law and in the eyes of the Church, our donors, and the general public, Conferences must keep adequate records and reports. Proper recordkeeping begins at the Conference level with the Conference treasurer, who must maintain accurate records of all financial transactions. A Conference checking account separate from the individual’s own account, and from any parish or other organization’s account, is essential. There can be no commingling of funds.

Officers or leaders of voluntary organizations must conform to all procedural requirements of state corporate law, as well as their own charters and bylaws. Strict adherence to all regulations governing recordkeeping and corporate procedures (including regular audits) helps protect the public, the Society, and Vincentian members against deceit and misuse of funds.
Reporting Procedures and Forms
We live today in a time of increasing scrutiny. With our Councils and Conferences serving millions throughout the United States, it is imperative that we demonstrate good stewardship by providing accurate, timely information to our Church, our donors, and the general public.

Good recordkeeping is an essential part of Vincentian activity, beginning at the Conference level. While the actual recording of information is the responsibility of the Conference Secretary, all members should keep written records of their Vincentian activities. A catalogue of recordkeeping materials and other operational resources is available from the National Office.

One such resource is the Conference Minute Book, which all Conferences should use. Standardized recording of Conference proceedings ensures uniform data nationwide and facilitates the collection and analysis of annual statistics in the Annual Conference and Council Reports. Only essential identifying information about persons served should be entered in the Minutes; code numbers and initials are preferred to actual names to help safeguard confidentiality.

In addition to the Minutes, Conference visitors should maintain case records for persons served, updating their entries prior to each Conference meeting. These cards, like other Conference records, are entrusted to the Secretary for safekeeping. Normally, when a case has been inactive for a three-year period, the case records should be destroyed.

The Conference Treasurer’s Handbook & Journal is an aid to the Conference Treasurer, who keeps the actual financial records and is responsible, with the President, for dispensing Conference funds. The Conference relies upon the Treasurer for verifying any bills presented to the Conference for payment.

The fiscal year of the Society of St. Vincent de Paul begins October 1^st and concludes September 30^th. Conferences report their activity for the year to their affiliated Council. Councils compile all Conference reports and forward these compilations to the next higher Council, along with their own reports. The National Council, in turn, collects all the compilations and publishes a Consolidated Annual Report that is distributed to all U.S. bishops, the U.S. Congressmen, and all U.S. members of the Society. Donors frequently request this document, as do foundations and federal agencies processing grant applications. The Consolidated Annual Report derives its value from the timely, accurate reports of the Conferences and Councils.

Record Retention

In the course of operation, Conferences generate case records, bank statements, invoices, etc. Confidentiality demands that all records on individuals and families served be kept in a secure, private place. Special care should be taken to secure electronic databases and prevent unauthorized access. Confidential material should not be transferred via email or web unless its security is assured.

Because federal, state, and local statutes of limitations vary, Conferences operating special works should check with their auditor or legal counsel and develop their own record retention policy. Conferences that operate no special works, have no payroll, pay no employment taxes, etc. can adopt the record retention schedule below, but should check first with their Council to make sure that no special circumstances apply to them. A Conference Record Retention Policy should dictate the manner in which records are kept secure and confidential, the length of their retention, and the means of disposal (e.g. shredding paper files, destroying computer disks). Records with historical value should be kept permanently.

Retention Schedule:
Annual Conference Report*……………Permanent

Letters of Aggregation….………………Permanent

Bank Deposits…………………………..3 Years

Bank Reconciliations……………………3 Years

Bank Statements………………………...7 Years

Cancelled Checks……………………….7 Years

Invoices Received……………………….7 Years

Case Records & Cards…………………..3 Years

General Correspondence………………...3 Years

Meeting Minutes………………………..7 Years

Minute Books…………………………...7 Years

Treasurer Statements……………………7 Years

*including statistics, membership list, and items with historical significance