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I agree. It sounds like these people want school recognition (like access to university facilities) and school money (like from student activity fees). A lot of schools will not give money or access to school facilities to groups which are not open (the thinking is that a student's money shouldn't go to a group they can't be a member of). That's how it was at both of the universities I went to. Even groups which seemed like they would be exclusionary (like the women's organization) couldn't refuse membership to someone not a member of their group without agreeing to give up school funding.
At a lot of schools greek organizations don't get university funds specifically for this reason.
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