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Councils Using Home
Corporation Facilities
Handbook For Councils Using
Home Corporation Facilities
John Marrella, Supreme Advocate
Councils and Home Corporations
 Provide space for charitable and fraternal
programs and for parish activities.
 Relationship works best when the home
corporation serves the mission of the council.
 Relationship should be guided by principle of
charity and service to the community.
Councils and Home Corporations
 Many home corporations struggle because of
significant property tax burdens, liability risks,
and competition from reasonably priced
professional banquet halls and conference
facilities.
 The Order’s valuable trademarks have been
abused and reputation damaged by third-party
renters of home corporation facilities.
Councils and Home Corporations
 For many years, state deputies have referred
to the Office of the Supreme Advocate a
variety of serious issues arising out of the
relationship between councils and home
corporations.
Example and Illustration #1

Scenario 1: A Home Corporation rents its facility to a group
planning a NewYear’s Eve party titled “The Capricorn Fiasco.”
◦ Fliers for the party on Facebook feature several scantilyclad women and boast of music by DJ SexyPants, a “sick”
dance floor, and cash prizes to the “hottest ladies in the
club.”
◦ The flier lists the event’s location as “Knights of
Columbus Hall” and mentions that the event is BYOB.
Example and Illustration #1

Scenario 1: A Home Corporation rents its facility to a group
planning a NewYear’s Eve party titled “The Capricorn Fiasco.”
◦ Underage drinking occurs and a fight breaks out in the
parking lot. Shots are fired.
◦ The police are called, and the next day the local
newspaper mentions the incident as having occurred at
the local “Knights of Columbus Hall.”
◦ A lawsuit is filed against both the home corporation and
the council.
Example and Illustration #2

Scenario 2: A Home Corporation has sold its building and
property, and members are now in conflict over how the
proceeds of the sale should be distributed.
◦ Half of the members want to keep the money and save it
to buy another building, while the other half want to
donate the funds to charity.
◦ The members are bitterly divided, and several officers
have stepped down from their positions.
Example and Illustration #2

Scenario 2: A Home Corporation has sold its building and
property, and members are now in conflict over how the
proceeds of the sale should be distributed.
◦ Many members are threatening to leave the council and
some have already left, while others want to dissolve the
home corporation altogether.
◦ General attendance at meetings and council events is
down and morale is low.
As state deputy, what
do you do?
Board Committee On
Home Corporations
In November, 2012, Supreme Knight Carl Anderson
appointed the ad hoc Board Committee On Home
Corporations.
 Chaired by Supreme Treasurer, Michael O’Connor.
 Other members are:
◦ Art Harris, Supreme Director from New York
◦ Mick Gilliam, Supreme Director from Missouri
◦ Scott Flood, Supreme Director from Connecticut
◦ Javier Martinez, Supreme Director from Texas
◦ Mickey Casavant, Supreme Director from Alberta

Board Committee On
Home Corporations
 The committee has carefully studied
numerous issues arising out of the
relationship between councils and home
corporations.
 The committee will make a set of final
recommendations to the full board.
Board Committee On
Home Corporations
 Two fundamental recurring problems that arise
between councils and home corporations:
◦ reputational and liability risks from third-party
rentals; and
◦ disputes over council/home corporation assets
upon sale of home corporation facility and
winding up of home corporations.
Board Committee On
Home Corporations
 Committee recommendations include:
◦ establish a policy requiring that councils and home
corporations use written agreements to clarify their
relationship to one another.
◦ develop a Handbook For Councils Using Home
Corporations to explain the reasons behind the policy.
◦ strongly recommend that all councils using home
corporation facilities use the two model written
agreements.
Handbook For Councils Using
Home Corporation Facilities
 The committee and the Office of the Supreme
Advocate have developed two model contractual
agreements and a Handbook For Councils Using Home
Corporation Facilities to help explain and implement
the policy.
Expectations

All members will act in good faith to clarify the
relationship between council and home corporation for
the good of the Order.

All members will work together in mutual respect in
regard to the council and home corporation’s distinct
but complementary roles-- namely, that of tenant and
landlord.

These expectations are consistent with the original
purpose for which members established home
corporations -- to support the mission of their council.
Objectives
 The policy and agreements recognize that councils
and home corporations are separate from each other
and should not be held responsible for each other’s
actions.
 Clarifying the relationship between councils and
home corporations should free up members from
undue concern about the relationship and allow
them to focus on the mission of their council.
Terms Of Use Agreement
 The Terms of Use Agreement clarifies the tenant /
landlord relationship between council and home
corporation.
 Its purpose is to mitigate risk as much as possible for
both entities by setting forth clear terms and
conditions governing how a council uses home
corporation facilities.
Terms Of Use Agreement
 These terms and conditions include,
among others:
minimum liability insurance requirements;
rules governing the use of the trademarks of
Knights of Columbus; and

a process for dispute resolution.
Terms Of Use Agreement
 This agreement does not involve the Knights of
Columbus Supreme Council or any state council as a
party.
 The agreement is between the local council and the
home corporation only.
 The purpose is to assist councils and home
corporations in resolving amicably a wide variety of
issues that may arise between them on their own.
Charitable Distribution Agreement
 The purpose is to clarify how funds and property
will be distributed between a home corporation and
a council IF the members of a home corporation
decide to dissolve the corporation.
 The council and home corporation decide in
advance how to settle matters between them in the
event that the home corporation is dissolved.
Charitable Distribution Agreement
 The Charitable Distribution Agreement does
not state that the home corporation must
dissolve.
 That is a decision that can be made only by the
officers and members of the home
corporation.
Terms of Use Agreement and
Charitable Distribution Agreement
 Protect both council and home corporation from
litigation risks and reputational damage.
 Minimize fraternal disputes.
 Address issues the Office of the Supreme Advocate
is most often called to resolve.
 Empower councils and home corporations to solve
problems on their own.
Terms of Use Agreement and
Charitable Distribution Agreement
 Whether to strengthen its relationship with its
home corporation or to become a parish-based
council, entering into these agreements will help
make the council’s decision as orderly as possible.
 The Supreme Council strongly recommends that
councils adopt these agreements.
Example and Illustration #1
Scenario 1: A Home Corporation
rents its facility to a group planning a
NewYear’s Eve party titled “The
Capricorn Fiasco.”
Resolution of Scenario #1
 Terms of Use Agreement Section 10.1 prohibits
Home Corporations from using the Trademarks of
the Knights of Columbus, including “Knights of
Columbus” and “K of C.”
 Section 10.2 prohibits Home Corporations from
using the Trademarks in their legal name.
 Section 10.4 requires the Home Corporation to
include a Rental Agreement Addendum in its
standard rental contract to protect the Order’s
marks from infringement by any third-party renters.
Resolution of Scenario #1
 Section 9 also requires the Home Corporation
insurance to name the council as an additional
insured on its policy.
 Section 16 allows the council to terminate the
Terms of Use Agreement on the basis that continued
infringements constitute a material breach of the
agreement.
Resolution of Scenario #1
 Section 11 provides guidelines to the council for
properly displaying the Order’s Trademarks on
Home Corporation facilities.
 Section 9 requires that home corporations must
maintain liability insurance, including Dram Shop
Liability insurance, in connection with the operation
of its bar.
Example and Illustration #2
Scenario 2: A Home Corporation
has sold its building and property,
and members are now in conflict
over how the proceeds of the sale
should be distributed.
Resolution of Scenario #2
 Charitable Distribution Agreement Section 2
provides that the real property and assets of the
Home Corporation will be transferred to the
council or donated to a charitable organization upon
dissolution of the Home Corporation, unless the
Home Corporation decides to purchase another
building within three years.
Resolution of Scenario #2
 Upon the transfer of the proceeds to the council,
the funds become “council funds” within the
meaning of Section 122 of the Laws of the Order.
 Accordingly, the disposition of the council funds
will be subject to the procedural due process
provision contained in Section 122.
 Section 5 of the Charitable Distribution Agreement
sets forth a three-tiered dispute resolution process
to address disputes relating to the disposition of
funds.
Leadership
State Deputy – supervises implementation of policy.
receives updates from state advocate; and
 acts as point of contact to Office of Supreme Advocate with
any questions relating to this policy.

Leadership
State Advocate – administers implementation of policy.





responds to inquiries from district deputies and grand knights;
tabulates number of councils using home corporation facilities in
jurisdiction;
tracks the number of councils that have entered into the
agreements with home corporations;
receives district deputies’ inventory of councils using home
corporation facilities; and
keeps running total of councils using home corporation facilities
and how many councils have entered into agreements with home
corporations.
Leadership
District Deputies –
make list of councils using home corporation facilities and
submits list to state advocate;
 promote adoption of agreements among councils using
home corporation facilities in his district; and
 if there are no councils using home corporation facilities in
the district, district deputies have no responsibilities.

Leadership
Grand Knights –
meet with council officers and district deputy to review
Handbook;
 direct council advocates to lead step-by-step review of the
checklist on how to implement Agreements with home
corporation; and
 refers all questions to district deputy.

Additional Information
Officers’ Desk Reference
https://www.kofc.org/oo
Look under the Councils Using Facilities Owned By Home Corporations tab
Email
[email protected]
Telephone
Call Associate General Counsel, Brian Gedicks at
(203) 752-4634