Alum Indicted on Embezzlement Charge (TKE, Arizona)

[Kevin]

House corporations are an incredibly important and often overlooked aspect of fraternity life. I think it's a bad idea, particularly in the case of young chapters such as mine, that alums are actually expected to know what sort of expectations and duties go along with being a Director of any sort of not-for-profit corporation.

A certain level of ignorance as to 'the rules,' can lead to lawsuits, and other sort of [very, very bad] extra-curricular activity which can have serious negative consequences for the active chapter.

My organization, recently, has slowly been transitioning to a national house corporation (Fifth Point Properties). I think this is a very good thing. While I do enjoy serving on our House Corporation, it is a tremendous responsibility. While we are blessed with a House Corporation whose members are well aware of their fiduciary obligations (at least a couple are on boards for major corporations, and everyone has a significant business or legal background), I can't imagine that the availability of such expertise is always available.

I can't think of any reason why national organizations who know their local chapters have significant assets don't either conduct training themselves for house corporation Directors and executives [actually, there is one -- potential liability, but I really doubt holding a disinterested training session is going to show the degree of control required to create an agency relationship, or make national organizations liable for anything], or do so through an independent third party [which would correct the possible issue].

There's way too much money at stake to leave things to what in many cases will be amateurs.