[PeppyGPhiB]

Do the national organizations know that a group is still operating under their letters there? They don't like that.

If there's no way they can be recognized, I'd try to educate the students going through rush about the minuses of joining an unrecognized/unchartered organization. Put it in the rush materials, and/or send a letter to students prior to the school year addressing the situation. Something like a "Recognized vs. Unrecognized" fact sheet. When I was considering Univ. of Washington, I got a letter in the mail along with the rush booklet that was all about a situation like this at UW, warning students to stay away from a certain chapter still functioning underground. Other than education the students, there's not much you can do. Besides withdrawing any support and/or funding, which I'm assuming you've already done.