Kappa Sig Hdqtrs.: part of the story

lifesaver · #16 04-15-2005, 07:07 PM

Lambda Chi Alpha recently split into three seperate corporations (I think it was 2001). They are:

1) Lambda Chi Alpha Fraternity, Inc. - (generally referred to as 'the Fraternity') Manages the membership of the fraternity, its records and provides services to chapters and alumni. Also responisbile for conferences and such.

2) Lambda Chi Alpha Educational Foundation, Inc. - (generally referred to as 'the Foundation') The company that manages the endowment and provides scholarships to the undergrads.

3) Lambda Chi Alpha Properities, Inc. - (generally referred to as 'LCAP') The management company that owns and manages some of the fraternity's houses and properties.

They were split in 2001, and the biggest reason was to protect the other groups. If someone was injured in a LCAP owned house and sued, they could only go after the assets of LCAP, protecting the fraternity itself and most impotantly, the cash cow that is the Foundation.

OR, if someone sued the Fraternity, the Foundation and LCAP would be shielded because they are all now, seperate companies.

They are all housed at the same building in Indy, but I wonder if LCAP was transfered the ownership of the HQ building. It would make sense.

But in Our case, all three are legal corporations all on their own with seperate boards and can and do act independently of each other. There might be statements of understanding between them, yet they do sometimes work in conjunction with each other. For example, all three are pitching in on a new computer system at HQ. Or sometimes, the Foundation will pay for alumni mixers to do fundraising for both the Foundation and Fraternity. Often the Foundation will provide scholarships for the undergrads to attend the Fraternity's national/regional conferences.

The LCAP is the newest kid on the block and was only a part of the fraternity since the mid 90's. The foundation has been around since the 50's. THe author of our ritual donated a portion of his estate upon his death to start it.