We are men who lead, serve, protect and defend, whether we are giving out Coats for Kids, donating wheelchairs, lending a helping hand in disaster relief efforts, supporting local pregnancy centers or providing top-quality financial products.
The Knights of Columbus offers a complete portfolio of top-quality products to our members and their eligible family members.
As of December 31, 2022, the insurance in force for the Knights of Columbus topped $121 billion. During 2022, more than $7.3 billion of new insurance was issued. These achievements are a result of the dedication of the Order’s professional field force of 74 General Agents, 86 Assistant General Agents and 819 Field Agents.
It is important to remember that these feats have been accomplished with only one out of every three members purchasing insurance from the Order. Our field force is to be commended – as you are, for the cooperation they are afforded – for the continued growth of the Order’s insurance program. Yet our potential is great. The goal is to make the Order’s greatest fraternal benefit, our top-rated insurance program, available to every Knights of Columbus member and his family.
The structure of our field force is simple and effective. The general agent is charged with recruiting, training and supervising the field agents in his agency. In some cases, he is assisted by one or several assistant general agents. Each agency can serve as many as 30,000 Knights of Columbus families, although agency size will vary depending on the territory and the general agent.
The regional agency executive consultant, who also serves as a general agent in charge of his own agency, is our regional executive, overseeing approximately 20 agencies. He serves as the region’s insurance leader, and acts as a liaison between the home office and the field force. He is assisted in his efforts by a field director.
With over two million members, our field force should continue to grow. This is the best way to ensure that the benefits of our insurance program are made available to every member and his family.
Remember that the Knights of Columbus insurance program was Blessed Michael McGivney’s principal motivation for founding our Order. He frequently witnessed the devastation wrought on Catholic families – including his own – when the breadwinner died unexpectedly. He saw the Knights as a solution to that problem.
In the years since he began the rudimentary insurance program, much has changed, but the mission of offering financial protection to brother Knights and their families has not. Today, that mission is carried out through a product portfolio that offers a wide variety of products designed to meet members’ needs. Permanent life insurance, term life, long-term care insurance, disability income insurance and retirement annuities are available in amounts large and small so that members in almost every age and income category can protect themselves and their families. The Order also offers many riders, features, and benefits on our plans to make them uniquely suited to our members and their families.
The Knights of Columbus also has Family Fraternal Benefits, an Orphan Fraternal Benefits program and a Member/Spouse Fraternal Benefit. The Family Fraternal Benefits program provides benefits to members with children that are physically challenged or intellectually disabled. The Orphan Fraternal Benefits program can provide a monthly stipend to orphans of qualified members until the orphan reaches their 23rd birthday if they are a full-time student. The Member/Spouse Fraternal Benefit provides a death benefit should a member (in good standing and his council must also be in good standing) or his spouse die as a result of an accident.
How are premium rates for life insurance established? The Order uses modern mortality tables to determine how many of a given group will die at certain ages. Modest assumed rates of interest are calculated as all funds collected by the Order are immediately invested. Reasonable expenses are also taken into consideration. These three factors — mortality, interest and expenses — if favorable, produce dividends (not guaranteed), which on an equitable and proportionate basis are returned to the policyholders.
Life insurance is a product which is purchased with discretionary dollars — those dollars left over after the so called necessities of life (food, clothing and shelter) are met. Without question, this type of product is difficult to sell. Yet this is the task facing a Knights of Columbus field agent. His earnings are based on commission (no sale, no pay). The work is time-consuming (most prospects are available only during evening hours). Additionally, much service work is associated with the administration of the product over long periods of time. A life insurance contract can be one of extremely long duration. A home mortgage might run as long as 30 years, but a life insurance contract can run much longer. The insurance needs and goals of the member will change over time and the field agent makes sure the member’s insurance plan meets those needs.
To be successful in this rewarding job, our agents need the cooperation and support of the Supreme Council, the State Deputy, his officers and our entire membership. It’s also important to realize that the financial resources afforded by our insurance program support many of our charitable and fraternal activities.
The most important job of the field agents is to sell adequate life insurance to our members. This is “job one.” But the sale does not end the client-agent relationship. Our field agents also service the insurance, which often requires changes as time passes. Changes of beneficiaries, changes of address, loan and surrender requests, changes in plans, etc. are all routinely handled by the field agent. In addition, he is strongly encouraged to aid and assist local council officers with their membership goals and other activities, and he will make every effort to help. This help should be in the capacity of a committeeman, with committee chairmen positions held by fraternal leaders. State officers, district deputies and local council officers are encouraged to seek the assistance of our field force, just as they will often seek help from the State Deputy.
It is true now more than ever that our field force is comprised of well-trained, professional salesmen. With this in mind, the State Deputy should be aware of any member of the Order who would be interested in a full-time position in insurance sales, and refer that individual to the general agent. It is a career of hard work, without question. But it is also one filled with many rewards, both financially and spiritually.
General agents and Insurance agents regularly hold Fraternal Benefit events, both in-person and virtual. These are educational presentations that focus on some of the most pressing financial issues that our members face today.
In these seminars, agents cover a wide range of topics from retirement strategies to estate preservation to charitable gifting and more. These exclusive events are designed to help our members become more aware of the tremendous financial benefits offered by the Knights of Columbus.
It is an opportunity for current and prospective Knights to learn more about the Knights of Columbus and the fraternal and financial benefits available.
In order to accomplish the charitable mission of the Knights of Columbus, councils routinely raise money, which can then be donated to worthy causes. This mission also calls our members to become personally involved in fundraising and charitable activities.
Although some councils maintain a large bank account or investment portfolio, we recommend that councils conduct their financial affairs and charitable giving so that accumulated general funds do not exceed $10,000. Larger and more active councils may maintain a larger balance in order to cover the expenses for their activities. Also, some councils may exceed the recommended $10,000 cap because of special circumstances, such as the receipt of a restricted legacy gift or proceeds from the sale of home corporation property.
The recommended $10,000 cap on a council’s general fund is intended to avoid common problems associated with the accumulation and investment of money. For example:
Councils are authorized to receive funds into their general account in the course of ordinary fraternal and charitable activities. To the extent that these funds are not immediately disbursed for necessary expenses and charitable donations, they may be held in other bank and investment accounts. However, councils should never invest or hold funds in brokerage accounts, stocks, annuities, non-Catholic mutual funds (other than government money market mutual funds), bonds, or other investments, such as gold, silver or platinum. Except under the special circumstances described above, the Supreme Council does not advise, encourage, recommend, or permit councils to invest or hold funds in any type of account other than the following:
For example, councils may choose to place funds in excess of $10,000 in a short-term certificate of deposit while waiting to disburse the excess funds for an intended purpose. It is also acceptable for a council to hold excess funds in a certificate of deposit as a reserve to cover a known expense or liability that is coming due in the future. The funds should be held under the name and Tax Identification Number of the council, and only the officers identified in the bylaws may have access to the account. The financial officers and trustees are responsible for keeping the members informed of where the funds are deposited. A program or committee chairman may never mix Knights of Columbus funds with personal funds.
In the event that a council receives proceeds from the sale of home corporation property, the council is encouraged to honor the legacy of the brother Knights who acquired and maintained the property over the long term. This can be done by investing in a diversified portfolio of Catholic values investments (e.g., Knights of Columbus Mutual Funds) to pursue ongoing charitable support in the name of the council.
Councils may not create charitable trusts or set up tax-exempt charitable corporations. However, councils that wish to set aside funds for charitable contributions are strongly encouraged to consider setting up a donor-advised fund. Knights of Columbus Charitable Fund (KCCF) has been established as a charitable corporation that offers a donor-advised fund in order to facilitate Catholic-compliant philanthropy for dioceses, councils, individuals, and other institutions. A Knights of Columbus council may set up a donor-advised fund with the KCCF through a simple application process. Individuals may contribute directly to a council’s KCCF account and are eligible to claim a charitable deduction on their tax returns.
A donor-advised fund provides a valuable service to councils that have a significant amount of money in a bank account, or hold other liquid assets (e.g., a council that has received money from the proceeds of the sale of a home corporation facility, or a large bequest from a generous donor). Also, a council may wish to establish a dedicated account to receive donations for a specific Faith in Action program (e.g., American Wheelchair Mission, Ultrasound Initiative, etc.).
For assistance in creating a KCCF account or for more information please contact Dennis Gerber, President, Knights of Columbus Charitable Fund, at 475-227-6701 or visit Knightscharitable.org.
Alternatively, if a council has accumulated assets to be invested in support of a particular program (e.g., scholarships) or another appropriate long-term need, the decision as to how to invest should be guided by Catholic moral principles. As an organization of Catholic men, it is imperative that Knights of Columbus councils comply with the United States Conference of Catholic Bishops (USCCB) guidelines in their investment activities. There is no return on investment great enough to justify risking the good name and integrity of the Order by investing in ways that might violate Catholic teaching.
To the extent that a council wishes to invest accumulated funds, the council should retain a qualified and registered investment advisor who is knowledgeable about making investment decisions on behalf of charitable organizations and in accordance with Catholic moral principles. Knights of Columbus Asset Advisors (www.kofcassetadvisors.org) meets these qualifications.
Knights of Columbus Asset Advisors offers a suite of Catholic investment options, consistent with Catholic moral principles, that provides investors with access to the same institutional investment management expertise that guides the Supreme Council’s multi-billion dollar portfolio for its own insurance and charitable programs. For assistance in designing an asset allocation program that meets the specific needs of a council, designated council representatives are invited to consult with Knights of Columbus Asset Advisors. Please contact Thom Duffy*, Vice President, Head of Investment Advisory Services and Sales Support, at (203) 752-4417 or thomas.duffy@kofc.org.
Invested funds should be held under the name and Tax Identification Number (also known as an Employer Identification Number or EIN) of the council, and only the officers identified in the bylaws may have signature authority over the account. The financial officers and trustees are responsible for keeping the members informed about how the funds are invested.
Regardless of how a council decides to invest or donate its funds, all disbursements and distributions must be made in accordance with the procedures set forth in Section 122(b) of the Laws of the Knights of Columbus.
* Thom Duffy is registered with Vigilant Distributors, LLC which is not affiliated with Knights of Columbus Asset Advisors LLC or its affiliates. This communication is provided for informational purposes only. Investing involves the risk of loss and investors should be prepared to bear potential losses. No portion of this commentary is to be construed as a solicitation to buy or sell a security or the provision of personalized investment, tax or legal advice. Knights of Columbus Asset Advisors is an SEC registered investment adviser that maintains a principal place of business in the State of Connecticut. For additional information about Knights of Columbus Asset Advisor’s business operations, please consult the Firm’s Form ADV disclosure documents, the most recent versions of which are available on the SEC’s Investment Adviser Public Disclosure website at www.adviserinfo.sec.gov / www.adviserinfo.sec.gov. Knights of Columbus Asset Advisors, LLC, is a whollyowned subsidiary of Knights of Columbus, the world’s largest Catholic Lay Organization.
Knights of Columbus Charitable Fund (KCCF) is a 501(c)3 public charity which sponsors a donor advised fund program and other charitable planning vehicles for dioceses, councils, individuals, and other institutions. A donor advised fund (DAF) is a charitable vehicle which allows donors to make irrevocable charitable contributions, potentially receive an immediate tax deduction, and recommend grants to other 501(c)3 public charities over time. A KCCF Council Account is a donor-advised fund for the local Knights of Columbus Council or State Council. With an annual administrative fee of 0.20%, the Council Account is easy to open and there are no minimum initial contribution or minimum balances on the fund.
The Council Account is the non-profit, tax deductible arm of the Knights of Columbus council without all the added administration of administering a 501(c)3 public charity. KCCF also provides a giving link for each council account, this allows individuals to contribute to the Council Account online through credit card and e-check. Once a donor submits his donation to the council account, KCCF handles the processing of the donation, the acknowledgement for the donor, and the account for the gift. At that point the council simply can review who has donated, how much they have donated, and make grant recommendations to the charities they are looking to support.
A Council Account also provides a valuable service to councils that have a significant amount of money in a bank account, or hold other liquid assets (e.g., a council that has received money from the proceeds of the sale of a home corporation facility, or a large bequest from a generous donor). Also, a council may wish to establish a dedicated account to receive donations for a specific Faith in Action program (e.g., American Wheelchair Mission, Ultrasound Program, etc.).
To create a council account please visit knightscharitable.org or if you are looking for more information please contact KCCF at charitablefund@kofc.org.
Alternatively, if a council has accumulated assets to be invested in support of a particular program (e.g., scholarships) or another appropriate long term need, the decision as to how to invest should be guided by Catholic moral principles. As an organization of Catholic men, it is imperative that Knights of Columbus councils comply with the United States Conference of Catholic Bishops (USCCB) guidelines in their investment activities. There is no return on investment great enough to justify risking the good name and integrity of the Order by investing in ways that might violate Catholic teaching.
To the extent that a council wishes to invest accumulated funds, the council should retain a qualified and registered investment advisor who is knowledgeable about making investment decisions on behalf of charitable organizations and in accordance with Catholic moral principles. Knights of Columbus Asset Advisors (www.kofcassetadvisors.org) meets these qualifications.
