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I can't speak on behalf of Sigma Nu but every organization runs into some sort of debt. It can happen very easily to an inter/national headquarters just like an individual chapter. IHQ does its budget based on so much income. If the income isn't there to cover expenses, it creates a debt. Sometimes the organization can make up for that particular loss with no real problems. Other times it can't especially if it is repeated.
For example, a chapter closes and IHQ takes over the house because they hold the mortgage. A couple of years down the road the same thing happens to two more chapters. The IHQ makes a decision to sell the houses because they are a liability but they have to take major losses on the sales. One house sold at a loss may not be a big deal but 3 houses at once can have dramatic affects.
In the grand scheme of things, $1.5 million is not a lot of money. IHQ may opt to raise national dues and/or increase its fundraising efforts.
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