Status is a background trait in game that gives a character access to all sorts of places he or she otherwise wouldn’t have. Most of the time it’s not required in game. A character that’s a doctor doesn’t need Status: Medicine in order to work at the hospital and know their way around, but it is helpful when one wants to help a patient get surgery when they have no insurance.
In Mage Phoenix, status in general is restricted to level 1 unless an explanation why it needs to be higher can be given to the ST. You don't have to convince me why you need Status 2 in any mundane area, I just want to confirm how it fits in with your character. To have Status higher than two will require a very compelling reason.
Also available is status with the Traditions in general and your tradition specifically, whichever that might be. This has never come up in game, but would determine your relationship with the Mage community outside Phoenix, if you have any interest in that. Status in these groups is also regulated.
Status in opposing factions is forbidden (Kindred, Camarilla, Garou, etc). No exceptions to this will be made. A vampire isn’t going to welcome a Mage as a member of their society any more than a farmer’s going to welcome a cow to Thanksgiving dinner.
PC’s that wish to interact with the different groups in the Phoenix World of Darkness can instead earn Status: Community. The Community is a catch all term for the Kindred, Mages, Garou, Ananzi, Fae, and other denizens of the world of darkness within Phoenix. Status: Community is earned after a PC has met at least one other member of the Community.
Status in the Community can only be awarded by the ST as a result of in game events. The first point is automatically given when a player joins the game.
Status: Community break down as follows:
1 – Known – people recognize you as a member of the Dark Community of Phoenix, and will treat you accordingly. Your not some mundane mortal to be preyed upon.
2 – Accepted – You have proven yourself to the members of the Community at large to be someone both competent and capable. A straight arrow who can be trusted to some degree. Gain the merit Good Rep when dealing with groups outside your faction.
3 – Respected – Your reputation within the Community is enough that you have earned a degree of admiration and respect from others outside your immediate faction. People will listen to your counsel when offered, and consider it accordingly.
4 – Influential - You are recognized as one of the leaders of the Community – Elders of Phoenix Rising, Holly Snow, Prince Jameson, Silas Ravenscore, Gilead (leader of the Garou)
5 - Feared/Worshipped - The being that sleeps beneath Arizona State University in Tempe
In the end, please remember that this is a Mage game. Although I’m starting to bring in more and more elements of the World of Darkness into Phoenix, when setting contradictions occur, I defer to the Mage: The Ascension. This means that while Vampire Elders are impressive, the Artificial Intelligences and Mind Augmented Mages of the Technocracy outclass them. The Wyrm is dangerous, but is kept at bay by the Void Engineers. Pentex for the moment is tolerated, but their influence wasn’t enough to save the Syndicate.