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DISCLAIMER: I am not a lawyer.
However, I work at a private school. To my knowledge, a private school can not allow greek life by either refusing to recognize the organization, or by refusing to recognize ANY organization that is designed to be a single sex organization, or by refusing to recognize ANY organization who's primary purpose (or "category") is purely social in nature (i.e. not a service org or an academic honor org). On a private campus, if you aren't a recognized organization, you might not be able to use campus facilities, sponsor events, advertise, or even wear letters on campus (some private schools have "attire guidelines").
Those are my guesses based on my work at a private school. However, each school chooses to recognize or not recognize National GLOs based on different reasons. We can't even BEGIN to speculate why your school doesn't. They may be perfectly happy with "coed service orgs" that are not nationally based and that just might have a Greek letter name. People define "Greeks" differently.
PsychTau
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