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Well said. I am glad you posted this article exlurker because while embezzlement might be rare, the non-financial/legal expertise on Housing Corporations that makes theft easier is frighteningly common.
Our Housing Corporation by-laws very strictly define the purpose of the organization, financial review requirements and the nature of expertise required of the Board, as well as minimum age requirements for members.
Thanks to well-intentioned, but uneducated, management of our own Housing Corp several years ago, we had to pay a $13K delinquent property tax bill this spring for a lease the chapter had many years ago. No it was not theft, but it was still just as expensive.
Financial and legal expertise is also very important as many chapters move to tax-free fundraising models developed by the types of fundraising companies who are also helping fraternities and sororities raise money tax-free. For housing corporations, these are attractive plans, but the use of funds is very restricted- and IRS penalties for misuse can be quite severe.
With real estate prices so high near campuses, there is more pressure to come up with plans using partial tax free funds and/or mortgage debt to buy a house. The days of just getting a few alumni to write a check are definitely dwindling. And thus all the more need for housing corporations to really know what they are doing.
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