Why do some Incorporate???

[DZTurtle11]

I'm just curious to why some GLO's are incorporated and some aren't. If I remember correctly a girlfriend of mine who is an AKA said something to the effect that they did it way back when to protect themselves from another group who split off. I may be remembering this wrong. Still I've noticed that some do it and some don't. Does any one know why? Or have any opinions to why?

PS: I did do a google search and came up with nothing

[ElieM]

I can't answer for anyone else, or even my own GLO (as we are not incorporated yet), but my sport club incorporated to protect the board/executive council from legal actions and from being personally liable.

But it probably depends on what state you are incorporated and those rules, etc.

[knight_shadow]

http://www.greekchat.com/gcforums/sh...ad.php?t=95110

[kddani]

There are a lot of legal benefits to incorporation. I would bet that most GLOs are incorporated or fall under some other corporate entity like an LLC. There is a different history with the NPHC groups- I believe there are threads on it somewhere.

I laugh at newbie groups (i.e. founded in the past few years) who run around bragging about being incorporated. All it takes now is some forms, possibly a lawyer (can do it without, but that's ill-advised) and a few hundred dollars. Not much of an accomplishment in this day in age.

[Titchou]

All NPC groups are incorporated but don't use it in their name in a "familiar" way as the NPHC groups do. At the time the BGLO's were being started it was difficult for blacks to incorporate so do to so gave them a sense of pride that continues to this day. I have always admired that...along with many attributes of their groups that we don't seem to have been able to be as strongly attached to.

[BluPhire]

Just to add a two cents from the old thread Knight Shadow linked to, not trying to rehash because the folks commenting there are long gone, I know in Missouri recently any non-profit (even if it is an undergrad chapter) can't get a bank account for the most part without a tax id number and you can't get that unless you incorporate. It's cheap though.

[agzg]

Originally Posted by DZTurtle11

I'm just curious to why some GLO's are incorporated and some aren't. If I remember correctly a girlfriend of mine who is an AKA said something to the effect that they did it way back when to protect themselves from another group who split off. I may be remembering this wrong. Still I've noticed that some do it and some don't. Does any one know why? Or have any opinions to why?

PS: I did do a google search and came up with nothing

Delta Zeta is incorporated - there are multiple references on their website to their Articles of Incorporation.

I have received documents in the mail before from "Alpha Gamma Delta Women's Fraternity, Incorporated" so there are some official uses where NPC organizations will note their incorporation status or dates. But there are lots of ways in which we don't denote it.

Among other reasons, it helps with the maintenance of property and longevity of an organization after leadership has changed or founders have passed away, since it basically means that the organization is seen as a "person" in the eyes of the law, so that individuals are not necessarily liable for group actions, et cetera.

[Titchou]

And all NPC groups are incorporated as 501 C 7's. A taxable social organization nonprofit.

[DrPhil]

Originally Posted by Titchou

All NPC groups are incorporated but don't use it in their name in a "familiar" way as the NPHC groups do. At the time the BGLO's were being started it was difficult for blacks to incorporate so do to so gave them a sense of pride that continues to this day. I have always admired that...along with many attributes of their groups that we don't seem to have been able to be as strongly attached to.

That's a major reason why you will often hear NPHCers say "(insert sorority or fraternity), INNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNcorporated!!!!"

[DZTurtle11]

Originally Posted by agzg

Delta Zeta is incorporated - there are multiple references on their website to their Articles of Incorporation.

I have received documents in the mail before from "Alpha Gamma Delta Women's Fraternity, Incorporated" so there are some official uses where NPC organizations will note their incorporation status or dates. But there are lots of ways in which we don't denote it.

Among other reasons, it helps with the maintenance of property and longevity of an organization after leadership has changed or founders have passed away, since it basically means that the organization is seen as a "person" in the eyes of the law, so that individuals are not necessarily liable for group actions, et cetera.

Really? I swear I looked at some mail I have received recently, the website, and Wikipedia. I even googled Delta Zeta Inc and didn't get anything. I guess I didn't look in the right place. I also put incorporated and incorporation in the search bar of our website

Oh well, not the first time I was a little lost

[DZTurtle11]

Thanks for the info knight_shadow!

[Titchou]

The recommended incorporation status for social organizations which all NPC groups are is a 501 C 7, non profit. This is NOT a tax exempt non profit as of the 28 501 C IRS designations, only the C 3 is tax exempt, such as charities. The foundations are incorporation separately as C 3's. As all usch organizations must file tax returns, this designation gives them the best filing options.

[Senusret I]

Originally Posted by Titchou

The recommended incorporation status for social organizations which all NPC groups are is a 501 C 7, non profit. This is NOT a tax exempt non profit as of the 28 501 C IRS designations, only the C 3 is tax exempt, such as charities. The foundations are incorporation separately as C 3's. As all usch organizations must file tax returns, this designation gives them the best filing options.

501(c)(7) orgs are indeed tax-exempt. Contributions to such orgs, however, are not counted as charitable donations.

Some GLOs also happen to be 501(c)(10) instead of 7.

[Titchou]

They are not tax ecempt. They have to pay sales taxes and income taxes. There are ways to "set aside" funds over $1000 in non member income in order to avoid taxes on that money. And contributions to them are not tax deductible. Trust me on this. I was the chairman of the board of an NPC 501 C 7.

[Senusret I]

You may be correct in your own case, but not universally so. Congrats on your credentials though.