property of PHI GAMMA DELTA

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HOUSE CORPORATION manual

TABLE OF CONTENTS Role and Organization of the House Corporation Purpose of the House Corporation ................................................................................................................. 3 The Graduate Association concept ................................................................................................................. 6 Building a working board .................................................................................................................................. 7 Relationships ......................................................................................................................................................... 8 Legal and Tax Considerations Tax status ............................................................................................................................................................. 12 Records management ........................................................................................................................................ 14 Strategic Planning and Goal Setting The necessity of planning ................................................................................................................................. 15 Options for purchasing, remodeling, replacement ....................................................................................16 Types of housing .................................................................................................................................................. 17 Financial and Property Management Developing a House Corporation budget .................................................................................................... 19 Overseeing chapter finances ........................................................................................................................... 20 Setting chapter rents ......................................................................................................................................... 23 Property maintenance ....................................................................................................................................... 26 Borrowing, Buying, Building, and Remodeling Borrowing locally ............................................................................................................................................... 28 The Chapter House Endowment Fund (CHEF) ....................................................................................... 29 Fundraising .......................................................................................................................................................... 29 Safety, Insurance, and Risk Management Necessary insurance coverage ........................................................................................................................ 30 International Fraternity liability program .................................................................................................. 30 Risk management ............................................................................................................................................... 30 Sample Contracts, Leases and Forms ................................................................................................ 31

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Alpha Chapter House at Washington & Jefferson College

ROLE & ORGANIZATION OF THE HOUSE CORPORATION PURPOSE OF THE HOUSE CORPORATION The purpose of a Phi Gamma Delta house corporation is to provide safe, comfortable, and competitive housing for the undergraduate chapter which it supports. Objectives and Responsibilities To manage the property so as to preserve it for the future use of the chapter. To develop and implement a long range plan for renovation and financial and property management.

To run a businesslike operation, maintaining financial records, producing periodic financial reports, and handling all legal and tax matters properly.

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To monitor the stability of the chapter, so that it can provide the income the house corporation needs to accomplish other objectives. To keep other graduate brothers informed of corporation activities. To cooperate with other brothers and groups in the chapter’s support system, including the Purple Legionnaire, Board of Chapter Advisers (BCA), Section Chief, Archons, and Headquarters Staff. To represent the interests of all the chapter’s graduate brothers in dealings with the host institution. Functions of the House Corporation How Do I Form a Corporation? Sample bylaws Most house corporations will already have a set of bylaws, but it would be a good idea to compare them with the attached sample to see if they need updating. Comments on selected parts of the sample bylaws: Members Most house corporations consider all of the graduates of the chapter to be members of the corporation. In addition, graduate brothers from other chapters who live in the area are given the opportunity to be members.

Some house corporations have implemented the stockholder concept, in which a graduate brother must contribute some minimum amount of money before he can become a member of the corporation. This kind of membership contribution can develop into a steady source of contributions and can get the brothers into a giving mentality which may pay off in a capital campaign later.

Board of Directors The sample bylaws provide for 11 directors. They are elected for three year terms, and the terms are staggered so that approximately one-third of the directors’ terms expire each year. This system provides for both change and continuity.

Executive Committee To expedite the business of the corporation, the sample bylaws provide for an executive committee of three directors, selected by the entire board, to conduct the business of the corporation between meetings of the board. Financial reports The books and records of the corporation should be examined each year by an accountant with no ties to the corporation. A balance sheet and a financial statement for the fiscal year just ended should be sent to the undergraduate chapter and the International Headquarters.

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Insurance coverage

The corporation should maintain insurance coverage sufficient to replace the existing structure and contents and should send proof of the coverage to the International Headquarters. Transfer of assets The sample provides in Article XI that, should the chapter cease to exist, the assets of the corporation shall be transferred to the International Fraternity. This is in keeping with Section 21.1 of the Bylaws of the Fraternity. Section 21.2 further provides that should the chapter be revived within 10 years, then those assets shall be transferred back to the revived chapter or its house corporation.

Beta Sigma Chapter House at Ball State University

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THE GRADUATE ASSOCIATION CONCEPT While the graduate association and the house corporation are similar in many ways and sometimes may be indistinguishable, the true graduate association has a broader purpose — the perpetuation of the undergraduate chapter. To fulfill this purpose, the association: Maintains chapter housing; Advises the chapter through the Purple Legionnaire and the Board of Chapter Advisers (BCA); and Promotes the involvement of graduate brothers with the association and the chapter. Organization In a graduate association, both the house corporation and BCA functions come under the association umbrella. The board of directors of the association serves as the house corporation. The Board of Chapter Advisers is a committee of the association. Other committees of the association might include: (1) Fund raising to coordinate both annual and capital fund drives. (2) Enrollment to get more graduates involved with the association. (3) Property management to see to the upkeep of house and grounds.

(4) Risk management to tend to insurance coverage needs and to work with the chapter on risk management. (5) Legal to advise on legal issues. Advantages and Disadvantages Several chapters in areas with relatively few graduates have found the association structure helps to consolidate the graduate support activities under strong leadership. (Ohio University and Cornell are two examples which come immediately to mind.) Combining the advisory function under the umbrella of the entity which holds title to the house and other assets could expose those assets in the case of a lawsuit. There is precedent from a court in Indiana which released a house corporation from a hazing lawsuit because the judge felt the house corporation, in serving primarily as a landlord, did not have a responsibility to control what the tenants (the undergraduates in this case) did in the house at 2:00 a.m., when the hazing incident occurred. If any chapter advisers had been named in this suit, it is conceivable that the judge could have found that they did have some responsibility for these types of activities. (More on how to address this potential responsibility can be found under Contracts and Risk Management.)

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BUILDING A WORKING BOARD One of the obstacles to convincing a graduate brother to volunteer his time for Phi Gamma Delta is that he often does not feel qualified to work with “these kids today” as an advisor. Many times graduates feel that they do not know enough about how to operate a chapter today, or that they have forgotten how the chapter was run when they were in school. While recruiting volunteers is rarely easy, one advantage to asking graduate brothers to serve on a house corporation is that, in many cases, you can recruit them because of their occupation or profession. A house corporation, for the most part, is a business operation, and most graduate brothers understand that and operate well within that framework. The ideal house corporation has these occupations/professions represented on it: Attorney Contractor Insurance College administrator Banker Realtor Restaurant/food service Property manager Accountant Architect Fundraising It can be much easier to get a graduate involved if he knows he will serve a unique and useful purpose on the corporation board based on what he does every day in his work. Finding interested brothers If your house corporation needs to be beefed up, the Pig Dinner offers a good opportunity to do that. Send a letter to all graduate brothers of the chapter and from the area at least two months before the dinner. Tell them this is their opportunity to become a part of the corporate entity representing all graduates of the chapter. At many chapters the graduate brothers consider it an honor to be elected to the house corporation, and this is the feeling you should try to develop. If you want to target brothers based on the expertise they can bring to the board, request from the Headquarters a printout of graduate brothers of the chapter or in a geographical area, with their occupations listed.

Gamma Sigma house at the University of the South, Sewanee

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RELATIONSHIPS There are three identifiable groups the house corporation must develop working relationships with: the chapter, chapter advisors and the International Fraternity. Undergraduate Chapter The undergraduates often do not understand the role, responsibilities, and limitations of the house corporation. They may expect the corporation to do more than it is capable of doing or more than it is intended to do. Most frequently, they do not understand that the house corporation’s primary source of money is the rent paid by the chapter. This is one reason communication with the chapter is so important. The other reason is that, through regular communication with the chapter on the work and role of the corporation, you are developing the future volunteers to serve on the corporation. Here are some basic things you can do: One or more directors should meet with the chapter at least once a year to:

(1) review the relationship of the corporation with the chapter and the individual brothers; (2) review the lease and/or housing contracts; and (3) present a financial report of the corporation. Speak to each pledge class to cover much the same things as mentioned above but in more elementary terms. Require the chapter to provide periodic financial reports to the corporation, including details of accounts receivable. Assure that the advisory roles (particularly financial) are filled by capable graduates. Review with the undergraduates the corporation’s expectations regarding upkeep, safety, and behavior. Chapter Advisors The line between the advisory role and the house corporation role can sometimes become blurred. This happens most often when there is a functioning corporation but little separate advisory support for the chapter. To the extent possible, the advisory roles and house corporation roles should be separate and distinct. The house corporation’s concern is keeping a stable roof over the chapter’s head. The Purple Legionnaire and the BCA (if one exists) are concerned with what happens under that roof. If the same brothers are trying to serve both roles, one or the other is going to suffer, and usually is it the advisory function. At a minimum, the chapter should have a Purple Legionnaire to serve as the primary chapter adviser. He has front-line responsibility for the condition of the chapter. He is appointed by and reports to the Section Chief. The house corporation should keep the Purple Legionnaire informed of all contacts with the chapter, including giving him copies of all written communications, agreements, contracts, etc. between the corporation and the chapter. He should be invited to all meetings of the corporation and should be asked to give periodic reports on the condition of the chapter. Because of the complexity of chapter operations today, each chapter ideally should also have a Board of Chapter Advisers (BCA) to assist the Purple Legionnaire. Graduate brothers on the BCA advise on

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all aspects of chapter operations, including recruitment, finances, pledge education, public relations, scholarship, graduate relations, and Ritual. Neither the BCA nor the house corporation has authority over the other, but they are very much dependent on each other, and therefore communication is important. However, the house corporation and the BCA should keep their meetings separate. If both bodies meet on the same day, such as the day of the Pig Dinner, each board can report to the other, but neither should attempt to get into detail at that time in the other board’s work. The meeting will be unproductive, and most everyone will get frustrated. Another way to put it: Each board should have its proper agenda, and members of the other board should respect that agenda. If there is no BCA, then the house corporation, in cooperation with the PL, should assure that, at a minimum, the chapter has graduate brothers advising them on recruitment and finances, the two areas where lapses by the chapter can have the greatest impact on the corporation.

Sigma Omicron Chapter House at Oklahoma State University

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The International Fraternity The International Fraternity is the highest level of continuity for an undergraduate chapter. However, it is also the most distant geographically. The Fraternity does not hold title to or manage chapter houses, nor can it advise chapters on a daily basis. Those roles are best filled by graduate brothers serving as PL, house corporation, and BCA. But we are all part of the undergraduate chapter’s support system, with the same ultimate goal. Key brothers or entities in the Fraternity organization From the house corporation’s perspective, these are the brothers or groups you will hear the most about/from. Ekklesia This is the supreme governing body of the Fraternity. It elects Archons, approves the International Fraternity budget, and amends the Constitution and the Bylaws. It meets in the summer of even numbered years and is comprised of voting delegates from the undergraduate and graduate chapters. Archons This is the board of directors of the Fraternity. Among many things, they set the strategic plan, set policies, oversee the budget, appoint other general officers, discipline chapters, approve chapter loan requests, and employ the Executive Director. Section Chief This is a volunteer regional officer who assists two to five chapters and colonies in his section. In the Fraternity’s structure, he is like a regional manager, with the Purple Legionnaire reporting to him as the front-line advisor. He should see that each of his chapters has a working house corporation, PL, and BCA. He is appointed by the Archons. Headquarters Staff These folks provide support to the chapters and the graduate volunteers. This includes recruiting graduate volunteers where needed. At the present time, brothers are employed on the staff in the positions of Executive Director, Chief Financial Officer, Director of Chapter Services, Director of Expansion, Director of Chapter Development, Director of Education, Director of Graduate Development and Field Secretary. Services the Fraternity provides to house corporations: (1) Fund raising guidance and materials (2) Assistance in recruiting graduates to serve (3) Long range planning assistance (4) “Best practices” information from other house corporations (5) Sample documents (bylaws, contracts, agreements) (6) Liability insurance coverage, Directors and Officers (D&O) coverage (7) Assistance in locating property insurance coverage (8) Contact information of graduate brothers

(9) Graduate Relations Services (Newsletters, Annual Appeals, Pig Dinner Planning, etc.)

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Documentation house corporations need to provide the Fraternity: (1) Minutes of meetings (2) Copies of Articles of Incorporation and Bylaws (3) Proof of property insurance coverage (4) Income statement and balance sheet (annually) (5) Updates on new directors and officers (6) Address changes of graduate brothers

Specific Duties of the House Corporation

Alpha Omicron Chapter House at the University of Akron

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LEGAL AND TAX CONSIDERATIONS

Are you Legal? Corporation Legal Checklist TAX STATUS Tax Liabilities House corporations should qualify for non-profit status under Section 501(c)7 of the Internal Revenue Code. This is the section under which the International Fraternity qualifies. Many house corporations have obtained this designation as subordinate units of the International Fraternity, and a letter supporting your application for this status can be obtained from the Executive Director. Non-profit status under Section 501(c)7 does not mean that contributions to your house corporation are tax deductible. It does mean that your income directly related to your exempt purpose is not taxable. Unrelated business income This could include interest, dividends, capital gains, etc., Such income in excess of $1,000 is subject to income tax. This tax can be properly avoided if the unrelated business income is “set aside” and used for certain qualifying purposes deemed by the IRS to be educational or charitable. If your house corporation needs to consider this procedure, contact the Executive Director or a professional qualified in non-profit tax issues. Property taxes Most house corporations which own property are subject to tax on that property. Persons knowledgeable about real estate and property tax matters recommend challenging the valuation of property from time to time to make sure it is properly and equitably valued for tax purposes. Filing Tax Returns Here is a description of the Federal tax filings normally required of a house corporation. Form 990 Return of Organization Exempt from Income Tax (1) due the 15th day of the 5th month following the end of your fiscal year (2) penalty for failure to file ($20 per day late) (3) may be able to use Form 990EZ or Form 990 N

(visit the IRS website to see.) Form 990-T Exempt Organization Business Income Tax Return (1) must file if the corporation’s unrelated business income exceeds $1,000 in a particular fiscal year (2) due the 15th day of the 5th month following the end of your fiscal year (3) the income is taxable unless properly set aside (4) daily penalty for late form plus penalties on tax due

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Federal forms for employers (1) Form 941 - Employer’s Quarterly Federal Tax Return

(last day of month after end of calendar quarter) (2) Form 940 - Employer’s Annual Federal Unemployment (FUTA) Tax Return (January 31) (3) Form W-4 - Employee’s Withholding Allowance Certificate (4) Form W-2 - Due to employee by January 31 (5) SS4 Application for Federal Tax ID # *Refer to your local accountant or tax attorney for detailed advice on these issues. Tax Exempt Status and Tax Filing Requirements Undergraduate Chapter & Taxes

Pi Gamma Chapter House at the University of British Columbia

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RECORDS MANAGEMENT You know how frustrating it can be to need a document and not be able to locate it. “I know I’ve seen that thing in the last month or so, but I can’t remember where.” This is even more distressing when you need it for legal purposes. That is why the house corporation should have a system for keeping up with important records. Here are some suggestions for a records management system. Records to be maintained a. Articles of Incorporation and By-laws b. documents regarding non-profit status c. rental agreement between chapter and house corporation d. housing contracts with individual brothers e. promissory notes with brothers f. minutes of the corporation g. loan documents h. deeds i. tax returns j. records of assets, such as investments k. lease for house or land l. insurance policies m. financial statements Places the records could be kept a. safety deposit box b. corporation attorney c. accountant d. directors’ offices e. International Headquarters Documentation a. have a single list of all the documents (including effective dates), who has the originals and who

has copies b. designate one officer of the corporation to maintain this list c. each time list is updated, send copy to officers and to the Headquarters d. verify location of documents once a year.

Sigma Chapter House at Wittenberg University

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STRATEGIC PLANNING & GOAL SETTING Planning for Your Housing Future Getting Started Checklist Like any business, a house corporation needs long range planning, no matter what its situation today. In fact, a case could be made that a house corporation needs planning more than most other businesses, for these reasons: The rapid turnover in the undergraduate chapter. The turnover and challenge of continuity on the corporation. The rapid depreciation of fraternity housing because of wear and tear. The scarcity of housing options for fraternities. The scarcity of financing options. Factors in developing the plan Get input from chapter, other involved graduates, all graduate brothers, International Fraternity, institution - their hopes, concerns, needs, projections. Evaluate the chapter’s history. Consider trends among students. Identify plans for the institution, e.g. student housing, enrollment, academic programs, attitude toward fraternities, etc. It is also wise to realistically look at the financial facts of the house corporation, in addition to house and property facts, like age, condition, upkeep, etc. On top of that, evaluate the community situation, such as zoning, other housing options, etc. Components of the plan While the plan must be built from the ground up, these are common components: a. A vision of the house and chapter at some future time b. Goals and priorities among those goals c. Financial needs d. A timetable of the goals and priorities e. Group commitment to the plan and assignment of responsibilities to particular brothers f. Continuity in insuring the plan will continue each year g. Orientation and commitment of new board members to the plan and goals Housing Business Plan Equipment Replacement Schedule

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OPTIONS FOR PURCHASING, REMODELING, REPLACEMENT The following are questions the house corporation needs to answer before taking any action. It would be a good idea to have a brother volunteer to take notes as the group comes to conclusions. Purchasing a house a. What amount of income will be needed to support the loan on the house we would like to buy? b. How can we raise the down payment? c. Can the chapter maintain the membership level needed to pay the loan obligation? d. Is there a commitment of graduates to see the project through to the end? e. What are the costs (financial and otherwise) of sticking with the current situation? Remodeling a house a. What needs to be done? b. What will it cost? c. Is the chapter membership sufficient to pay the cost? d. Will chapter rent go up as a result of the project, and if so, do the brothers realize this? e. Will the work to be done add value to the existing building? f. Is the work anticipated a good decision based on the present, the chapter’s history, and the

trends on the campus? g. Has a contingency been provided for overruns? Building or substantial replacement a. Does it make sense to do it? b. Do enough graduate brothers care to make the commitments necessary to complete the project? c. Are the financing package and cash flow sound, and are there provisions for a fall-back position? d. Is the scope of the project appropriate considering the history of the campus and fraternity

system? e. Does the design take into account input from all possible sources, including similar projects of

other fraternities/sororities? How do we get a house?

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Epsilon Iota Chapter House at the University of Evansville

TYPES OF HOUSING There are four distinct types of college housing, each with its own advantages and disadvantages, for the house corporation to consider for the undergraduate chapter. Traditional Advantages (1) More of a home atmosphere (2) Layout of house promotes interaction (3) Conducive to “traditional” fraternity living Disadvantages (1) Single purpose structure with little market appeal other than as a fraternity house (2) Can cost more to heat and cool than other designs (3) Highest ratio of public areas to bedrooms

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Lodge Advantages (1) Lower cost (2) Little or no worry about filling beds to meet high debt and utility expenses Disadvantages (1) Chapter communications and operations suffer because brothers are dispersed. (2) Usually no kitchen and meal program Apartment Advantages (1) Keeps brothers relatively close together (2) If all apartments are not filled, it is easier to rent them out to non-members. (3) Greater marketability when attempting to sell Disadvantages (1) No traditional fraternity house feel (2) Brothers may stay secluded in their own apartments. Lodge-apartment combination Housing Options

Delta Kappa house at Davidson College

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FINANCIAL & PROPERTY MANAGEMENT DEVELOPING A HOUSE CORPORATION BUDGET a. Evaluate what the competition is doing - other fraternities and residence halls. Do not be

concerned if you are in the top one-third in amount of individual house bills. b. How does the budget fit within long range plans for accumulation of reserves, funding

depreciation, retiring debt, etc.? c. Base rent income on realistic numbers, not on what the undergraduates think might happen. d. Be conservative in overall income estimate. e. Be liberal in expense estimates. f. Budget for a surplus. g. Charging less does not bring in more members in rush. Realistic budgeting, for both the chapter

and the house corporation, is the key to long term stability. h. Some house corporations base rent income on number of men living in. Others set the expected

income from the chapter and leave it to the undergraduates to determine how they come up with the total.

Typical sources of income a. rent from live-ins b. parlor fee from live-outs c. kitchen rent d. fund raising e. investment income f. shareholder payments to corporation Typical expenses a. mortgage loan payment b. property taxes c. insurance d. utilities (unless paid by chapter) e. repairs and replacements f. accounting services g. house director salary & payroll taxes h. reserves i. corporation expenses (printing, postage, fees) Undergraduate Annual Housing Budget House Corporation Budget Chapter House Finances

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OVERSEEING CHAPTER FINANCES Filling the house The house corporation and the chapter should agree on a date by which the chapter will have signed contracts from brothers who will be living in during the next year or term. Your expectation should be that the chapter will fill every bed, as long as there are an adequate number of brothers. The chapter should have a bylaw which, if enforced, will guarantee that the house will be filled. Here is recommended wording: After room contracts have been signed voluntarily, any remaining empty beds will be filled starting with the brother with least seniority and working up through the membership. Any brother refusing to live in may choose to pay the rent for the empty bed. In addition to this wording, some chapters provide that any brother who has already lived in for a certain number of terms/years will be passed over the first time through the seniority system. Guide to Filling the Chapter Facility New Member Housing Commitment Membership Contract

Alpha Mu Chapter House at Texas A&M University

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Kappa Rho Chapter House at the University of Rhode Island Recruitment emphasis Because the chapter must have a certain membership level to fill the house, the house corporation should monitor the chapter’s recruitment results and membership level. The house corporation, PL, and BCA should not take for granted that this year’s recruitment success will be repeated next year using the same techniques. Many chapters are caught by surprise when they make that assumption. Suggestions for house corporation involvement: a. Be aware at all times of the distribution of chapter membership by class and be sensitive to what that means for the chapter and the house corporation. b. Work with the PL and BCA to help the chapter set its optimum membership level. That should then be narrowed down to an annual initiation goal (taking into account pledge attrition) to achieve and maintain that optimum membership.

c. Designate a graduate brother, preferably one with marketing and sales experience, to work closely with the recruitment chairman and chapter as the BCA recruitment advisor.

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Chapter financial management The house corporation should be certain that a qualified graduate brother is working closely with the chapter on financial matters. This can be done in cooperation with the PL and BCA. Links to reports that the International Fraternity requires of each chapter follow: Balance Sheet Monthly Financial Statement Optimum Size Calculation

Chi Eta Chapter House at Western Kentucky University

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SETTING CHAPTER RENTS, SIGNING LEASES, AND MANAGING THE PROPERTY Every House Corporation should have a lease with the Chapter and the Chapter should have leases with each brother living in the Chapter House. The house corporation needs to set a rent amount for the chapter which takes into account: (1) the depreciation of the house from wear and tear caused by the normal, energetic use of upwards of 50 young men each and every day; and (2) the effects of inflation on the cost to replace or renovate the house. Based on those factors, chances are good that few of our house corporations are charging adequate rent. Following are several formulas which have been recommended by Tom Devine of Sigma Alpha Epsilon for determining if adequate rent is being charged. Try them and see how the results compare to your situation. House Corporation Chapter Lease Rental Agreement House Corporation and Chapter Contract Contract for Room and Board Tenant Lease

Omega Mu Chapter House at the University of Maine, Orono

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Epsilon Alpha Chapter House at the University of Alberta With every lease commitment, you should obtain the financial guarantee of the brother’s parents. The sample forms contain a place for the parents to guarantee the lease. You should also closely monitor the condition of the property on move-in and move-out and collect damage deposits for each tenant. When a brother falls behind in his rent, you must act immediately – before the situation gets worse. Consider sending a letter to the parents and executing a note or other repayment plan. Sample House Corporation Letter to Parents Parents Letter – Delinquent Account Sample Installment Note Sample Promissory Note Sample Graduate Collection Letters House Corporation Payment Plan

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Damage Deposits and Room Inspections Damage and Maintenance Policies Damages Room Inspection and Damage Deposit Calculation Sheet Assessment of Condition of Rental Property Move In/Move Out Condition Report (Theta Chi) One way to manage both the condition of the house and more closely monitor the collecting rents is to adopt House Rules and to use a House Manager, a House Mother, RA, or Professional Property Manager. Sample House Rules House Manager Responsibilities The Housemother Sample Housemother Contract Resident Advisors Sample Resident Advisor Contract Professional Property Management House Cooks

Delta Iota Chapter House at Drake University

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PROPERTY MAINTENANCE Diligent care of the house and grounds by the chapter and the house corporation can reduce tremendously the long term cost of operations. A member of the corporation should be designated as Property Manager to work with the chapter and its house manager to see that proper maintenance is done on the facility. A House Maintenance Manual can help to keep track of all work done on the house. Such a manual might include the following information: 1. Lease agreement between the chapter and the corporation 2. House rules and policies 3. House manager job description 4. Most recent safety/building inspection reports 5. Record of house maintenance

a. exterior (roof, downspouts, painting, etc.) b. interior (floor by floor, room by room) c. utilities d. systems (telephone, fire alarm, sprinkler, security)

6. House closing procedure 7. House opening procedure 8. Directory of service

a. plumbing b. heating c. fire d. telephone e. security f. sprinkler g. appliances h. carpentry i. flood j. laundry k. roof and gutters l. painting m. grounds

Chapter House Self-Inspection Yearly Property Inspection Sample Yearly Maintenance Opening the House in the Fall Spring Preparation Summer Chapter House Closing Fall and Winter Preparation Checklist

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Closing the House for Breaks Contacts Directory Repairs and Maintenance Tracking depreciation A copy of one house corporation’s schedule of depreciation follows. Equipment Replacement Schedule

Omicron Deuteron Chapter House at The Ohio State University

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Upsilon Alpha Chapter House at the University of Arizona

BORROWING, BUYING, BUILDING & REMODELING

Borrowing Locally To borrow locally, start building relationships with local banks, using contacts through your realtor, architect, attorney, accountant, the college/university or graduate brothers. You will need to get the financial house in order, both for the chapter and the house corporation. Eventually, you will need three years of financial statements, balance sheets for both chapter and house corporation, as well as projections for next three years. By developing a business plan, you show stability and dependable business practices. In the business plan, include such items as background on the host institution plus recent trends, background on the fraternity system on campus, and the history of the chapter. Chapter information should address membership trends, prominent graduates, grades, community service, campus activities and awards and recognition received. Also include a sample of the graduate support system with brothers and positions. Background information on the International Fraternity and its support will help familiarize decision-makers with Phi Gamma Delta. Get to know other house corporations. The International Headquarters can provide contact information that may lead you to brothers who know of additional lending sources, and some may be the lending sources themselves. Keep the institution informed of developments. The college or university may be another source of financing or it may want to ask to guarantee a loan.

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Corporate Resolution Common Mistakes in a House Renovation Construction Cost Estimate Chapter House Endowment Fund If the project involves improvements to study areas or libraries or other qualifying items and the Chapter has raised donations through the Foundation, you may qualify for a grant from the Foundation “CHEF” Program. CHEF Program Overview Fundraising by the House Corporation Annual Fund Before Capital Campaign Regular newsletters and appeals should be a regular part of the Chapter and House Corporations activities. These functions can be performed by the Chapter, a number of third party vendors, or through the International Headquarters. If the Chapter performs these functions it should be monitored by the House Corporation and other Graduate leaders for the timeliness and content. A campaign to raise capital for the purchase or renovation of a chapter house usually begins with a feasibility study. Feasibility studies as well as campaign management services may also be provided by a number of third party vendors as well as the Educational Foundation (in select cases). Fundraising Guide

Delta Xi Chapter House at the University of California, Berkeley

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Sigma Phi Chapter House at Florida International University

SAFETY, INSURANCE & RISK MANAGEMENT

Necessary Insurance Coverage Section 19.6 of The Bylaws requires House Corporations to hold Property Insurance coverage adequate to the replacement value of the house and property owned by the House Corporation. A copy of the insurance certificate should be sent to the International Headquarters annually. The International Headquarters can direct House Corporations to insurance brokers that specialize in Greek housing. Contact us at (859) 255-1848 or phigam@phigam.org for more information. International Fraternity Liability Program The International Fraternity purchases General Liability coverage as well as Director and Officers Liability coverage under which House Corporations fall. Reference the Insurance Claims Manual for more information. Risk Management Since 1988, Phi Gamma Delta’s Risk Management Policy and related educational efforts have provided expectations and guidance to brothers and chapters on reducing the risk associated with fraternity activities. On the Risk Management Page, you will find information and resources regarding: • The Risk Management Policy Hazing • Alcohol Issues / Event Planning Liability and Insurance Coverage • Housing

These resources will help chapters manage their events and activities in a manner that reduces the risk of injury to people or damage to property.

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SAMPLE CONTRACTS, LEASES & FORMS Annual Procedures for House Corporations Chapter Facility Management Insurance and Liability CHEF Program Overview Contract for Room and Board Fire Safety Fire Safety Checklist Fire Safety Loan Information and Application Fundraising Guide House Corporation Bylaws House Corporation Chapter Lease Managing a Chapter Facility Rental Agreement Risk Management Policy Smoking and Fire Safety Suggested Smoking Policy Tenant Lease Transition to or from Alcohol Free Housing US Fire Administration Report 2002

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