Problem...

[archangel689]

This Coordinator seems to be very inexperienced and I doubt this will be that hard to solve.

SOLUTION: Money Makes the World Go Around.

Question 1: How old are these locals?
Question 2: How much money do the alumni of these locals donate to the University?

Look, It's this simple. Spearhead this yourself. Call up prominent alumni, tell them the situation.

Call the office of whoever is in charge of Student Life, the person with the clout and power. At my school this would be the Executive Vice President for Student Life.

Schedule an appointment with this person, your alumni, and yourself. Dress up. Bring an alumni whos very political and a good talker. Make sure everyone understands what exactly is going on so that there is no differences of opinion between the alumni durring the meeting.

Tell this person that "we've done our best to help the university and we'd like to continue to contribute to the university, however the Student Activities Coordinator is making it impossible for us by making threats against our organization, could you please rectify this situation for us."

Have your shit in order, have quotations of what this coordinator said, etc.

Checkmate.
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See you girls were founded in 1989... which is very young. Our locals were able to pull off something like what I've described above because they are almost 100 years old and have HUGE alumni bases. Even the threat of retracting dotations scares the administration. Perhaps one of the other locals is older try to get their members motivatated to help out. Hold regular meetings about the subject if you have to. Even if they arent old, or donating, pissed off alumni still holds weight and it's still worth a shot