Answer #1: The same way a national sorority does. If your school admin is giving you Title IX as an excuse not to recognize you, they're full of shit. There are schools where all the organizations are local and so obviously they're not violating Title IX. (You may want to bring up Bloomsburg, where half the groups are NPC and half are local.)
Answer #2: It depends. Pertinent thread:
http://www.greekchat.com/gcforums/sh...d.php?t=116933