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First off, contact your National Office and have someone come in and help. Doing this all on your own might be too much for you guys to take on without support. Your national HQ has a lot of resources they can use to help you. You just have to ask. No organization wants a chapter to fail.
If people aren't paying dues. Cut them. Get rid of them. I don't know your fraternity's specific bylaws, but in mine, if someone does not pay dues they are kicked out. Not inactive (that's reserved for people with specific situations), kicked out. Cut the fat, now. They will drag you down and it will effect the type of members you recruit.
If you have brothers who don't pay dues, don't participate in rush and don't show up to anything, why are they still there? If they're not contributing to the chapter, they have no business being in it.
When was the last time your chapter looked at your constitution/bylaws? Maybe your guys have no idea what's required of them. Spell it out and explain to everything what is expected of them. Institute penalties for not showing up to events. Most chapter's have some form of social probation or monetary fine. Does your chapter have some sort of standing judicial board to handle these issues?
Fixing a reputation takes times. You guys just need to put forth a constant effort at it. Get involved in other activities on campus. Philanthropy involvement is easy. Your national organization has specific philanthropies they support, so find one of them close to you guys and get involved. As for sponsoring events, I'm not very familiar with your campus so I can't give you specifics. But generally there is a student activity fund you guys could tap and use it plan events for the school. Approaching businesses about events is also a possibility. From my personal experiences with businesses (Chipotle, Pizza places, Starbucks, etc...), they are more than happy to help with philanthropic events. You just need to talk to managers and, in some cases, corporate HQ.
But something of this caliber takes time, so I don't know if that should be your biggest focus now. Get your internal membership issues fixed ASAP
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