Johnny
Lodge Compliance, Why?
By, Ed Mason, Tennessee FOP Compliance Committee Chairman
The Grand Lodge established a Compliance Committee “to protect the Order and its name and logo by ensuring that all lodges are in compliance with the Constitution & By-Laws as well as all edicts, policies and directives of the Grand Lodge. Further, to ensure that each lodge maintains good business and sound financial practices that fulfill all Federal and State reporting requirements.” This was explained in Brother Tom Penoza’s Treasurers Message in the August 2010 FOP Journal. If all State and Local Lodges were in compliance that year there would not have been the threat of the FOP losing its federal non-profit status. The requirements having being met by the lodges, some at the last minute, by obtaining a Federal EIN (Employer Identification Num-ber) and filing a 990, 990N or 990EZ return with the IRS, stopped the threat.
The Grand Lodge may have caused the formation of the compliance requirements but there are other valid reasons we need to comply. Many of the requirements go toward protecting the state and local lodges, its officers and its members. One good example is the 2005 compliance requirement dealing with the incorporation of local lodges. If a local lodge is not incorporated, the local lodge elected officers could be held personally liable if the lodge were to be sued. In Tennessee the filing of a one page form with the Tennessee Secretary of State’s Office and a payment of $100.00 will incorporate a local lodge.
This will provide a legal layer of protection for your lodge’s elected officers from personal liability. There is a one page renewal form, with a small fee, that must be submitted for incorporation renewal yearly. If you conduct fund raisers or have functions involving non-members, it does not make sense to not incorporate your lodge. This compliance requirement is recommended but not mandated at this time.
New compliance information was provided at the 2011 National Convention in Salt Lake City, Utah. The State Lodges were informed that they must be in compliance with all current and appropriate paperwork at their State Lodge Office by February 1st of each year. This requires that the local lodges must have their updated compliance paperwork to the Tennessee State Office by January 15th of each year. This will allow for it to be reviewed and processed before the Grand Lodge mandate.
Of the 21 items included on the Tennessee Local Lodge Compliance list, some benefit the Grand Lodge, some the State Lodge and some your local Lodge. Although it looks like a lot of unnecessary paperwork, it really does provide safeguards that protect our organization and leadership. Take the time to make sure that your lodge has someone started on or completed the compliance requirements. It is our organization and we must all work to protect it.