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My understanding is that there's a recycling arrangement with the jeweler. Let's face it, do you want just any yahoo who logs onto ebay wearing a Sigma Chi pin?
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I don’t really think this is a problem. As Corbin said, the people buying these are either members, collectors who are putting them in cases, or other dealers trying to make a buck on the resale. I’m sure it has happened that a non-member wears a pin he won on ebay. But I think it’s quite rare. On the other hand, BGLOs seem to have more of a problem with “perps”, so for them this might be a bigger issue.
Also, badge jewelers don't recycle (other than buying bulk quantities of gold, which likely contain plenty of scrapped fraternity and sorority pins). Once they've sold a badge, they have no interest in seeing it again. They'd just as soon have the pin get shipped to Mars so they can sell a new one.
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I was once told that Tri-Delta pins remain the property of Tri-Delta, and that when one dies, the pin is to be returned to their Executive Office. Is that urban legend?
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Urban legend, no.
Tri-Delt policy, yes.
Legally binding, no.
Wishful thinking, yes.
See countless earlier threads on this topic.
wptw