Judging by the sign they showed during the episode, the chapter they were working with is Delta Gamma at Santa Clara University, which is a Jesuit school.
The University is phasing out Greek life (by 2003) and suspended all recruitment activities in Fall 2000.
You can read about it here:
http://www.scu.edu/news/releases/0301/greek-review.html
The university commissioned an extensive study and decided that it was easier to do away with Greeks and expand other recreational services than institute changes within the Greek system. At the time of the abovementioned article, only 239 students out of over 7300 were affected by this decision.