Federal Laws concerning Greeks.

[Tom Earp]

Your very welcome and I hope more Brothers on GC do the same!

I am sending a copy of the letter that I received from 1 of 3 that I emailed about this and he gives his backing.

I have talked with the just past President of AGD who was in the fore front of this negotiation along with LXA who is instrumental in pushing these bills to fruitation.

It will benefit not only LXA Alumni and Greeks in toto but those of all GLOs.

It is important for all of us to contact your State Senators and Represenatives to build a tidal wave of togetherness and show solidarity!

[Tom Earp]

Since I have more time on my hands now, I email one of the Kansas Senators who was a sposor of S Bill 638.

This is my email:


Dear Senator Roberts,
I have emailed twice concerning the Bill S 638 concerning tax breaks for donations by Alumni of Greek Social Organizations.

This is an important Bill that needs to be passed for many reason and not just in Kansas alone.

As you and many Kansans can see, the state of revenue for the many State supported Colleges is lacking.

The priorities are placed else where as can be imagined.

With the passing of this Bill, it will give the thousands of Alumni the chance to help not only build houses that will keep students in house because of the lack of school dormitories, but will also allow the donations go towards fire suppression systems that many college towns are now starting to mandate.

While this may seem a small thing compared to what is going on in the world, it is important to of who have graduated and those who may go on to school and graduate also.

There are many people who are from Greek related orgizations who have been very important in the history of Kansas and the United States.

I ask for your pressure on this Bill and hope you will email me and let me know what you are doing to support it.

Respectfully Yours,

Thomas G. Earp
Lambda Chi Alpha
Lambda Chi Chapter # 1
Pittsburg State University.

I also received a letter from the other Kansas Senator and one from
my House Represenative who said they was backing it.

I feel very strongly about this as it will benefit not only Lambda Chi Alpha, but all Greeks.

Please take the time and keep pressure on them
In ZAX,

[dever860]

Can someone explain exactly how a 501(c)(3) status works? I know LCA HQ has a 501c3 tax exemption. Can alumni associations also get this? I think I am just confused on the whole matter on what and what you cannot do with a tax exemption as a non profit organization. Why can't our alumni association gain this status, and accept donations to say... build a new house?

[boz130]

If I'm understanding this program correctly, our individual AAs/HCs can't set up a 501(c)(3). However, we can benefit if we align w/the development dept. of our individual universities/colleges.

For example, donors send money to Northwestern's Alumni Assn. & specify that it's to go specifically toward Building Fund XXXX. The money is a write-off for the donor, and the university funnels it directly to the building fund's recipient...in this case, Alpha-Iota.

I'm pretty sure it's the same scenario being done @ other institutions. Alpha-Tau/Iowa State has a comparable arrangement, and we're looking into it @ Beta-Omicron/Illinois State. Seems like a win-win for all involved.

In ZAX,
BF

[dever860]

Originally Posted by boz130

If I'm understanding this program correctly, our individual AAs/HCs can't set up a 501(c)(3). However, we can benefit if we align w/the development dept. of our individual universities/colleges.

For example, donors send money to Northwestern's Alumni Assn. & specify that it's to go specifically toward Building Fund XXXX. The money is a write-off for the donor, and the university funnels it directly to the building fund's recipient...in this case, Alpha-Iota.

I'm pretty sure it's the same scenario being done @ other institutions. Alpha-Tau/Iowa State has a comparable arrangement, and we're looking into it @ Beta-Omicron/Illinois State. Seems like a win-win for all involved.

In ZAX,
BF

I could be wrong, but I swear I was on a Alumni Association website, doing research for making our own, and one claimed to have a 501 exempt status. So I was kind of confused. I should have wrote down the page.

I would be concerned with how the college transfer ownership of the money. Do they setup a private account through the university that the groups can withdrawal money? I could see the college withholding money for some reason if they were trying to hamstring you to do something. Then again I have no idea how the program works. OSU likes doing that kinda stuff.

[john1082]

Originally Posted by dever860

Can someone explain exactly how a 501(c)(3) status works? I know LCA HQ has a 501c3 tax exemption. Can alumni associations also get this? I think I am just confused on the whole matter on what and what you cannot do with a tax exemption as a non profit organization. Why can't our alumni association gain this status, and accept donations to say... build a new house?

Typically a 501(c)(3) corporation is restricted from spending dollars on brick and mortar. Educational expenses are OK, that is more or less what a 501(c)(3) is for; however, brick and mortar, like for a house, is generally not an acceptable use for those tax treated dollars.

Dollars given to the Lambda Chi Alpha Educational Foundation fall under the umbrella of 501(c)(3) as educational dollars. A check to Lambda Chi Alpha, Inc. is, I would presume, not accorded the same tax treatment.

[Tom Earp]

This seems to be the typical thing when it comes to tax laws I guess.It was my understanding that our house at the University of Kansas was the last one built with donated tax deductable dollars back when.

That is why this follow up with your legislatures is so important.

Even though it is in committee it still needs shoves to get it out and voted on in a positive manner.

I have finally gotten letters from each of my duly elected members who al say they are for the Bills. One even sponsored it in the Senate.

With the rising costs and the lack of money coming from the States for Colleges it makes sense that the little money that it would cost the Federal Government it would be a huge benefit to the Colleges and Greeks as well.

Example:

Kansas Universitys need @ $635 mil. and the Kansas Legislature is allowing $190 Mi.

This is just one State out of 50 so it does give all an idea.

Example:

L X Z just built a new house for @ $750 thousand with out fire sprinkler systems which was against what I wished. But with the advent of so many citys and towns starting to pass ordinances to retro fit with in older homes, it could very well be cost prohibitive and they lose their houses and Charters.

Then, Greek life falls.

Please remind all Brothers to put pressure on as it can do nothing but help!

In ZAX,