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The idea behind the "no frills" NPC policy is to cut down on spending for recruitment. At many large school chapters were spending over $10,000 on formal recruitment. The idea was to cut down on the excess and focus on conversation and getting to know each other. Going a sorority should be about the women you will be sisters with, not who spent the most money or had the best decorations.
In regards to recruitment outfits - it's the same idea. They don't want you to require your entire chapter to go out and spend several hundred dollars on clothes that they will use only for recruitment. That is what they mean by costumes. Not costumes as in halloween, but an outfit that is specifically purchased for and used only during recruitment.
In an earlier post someone said they were having pref dresses made - this is an example of a no-no for no frills recruitment. It's not the idea of everyone being in the exact same outfit, it's the idea that you are requiring your chapter to purchase a special outfit and that it will be strictly for the purpose of recruitment.
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