Questions about finances...?

[Shark_in_Skirt]

Hi everyone!

My best friend who just started at San Deigo State University was really looking foward to rushing until she heard how much sorority dues were... She's now not planning to rush because she feels that it may be too much for her to pay.

So her situation leads me to ask these questions:

If you really love a PNM but know that she will have a difficult time paying the dues, do you cut her? Should a PNM discuss her financial situation so as not to mislead her potential sisters?

Thanks for satisfying my curiousity.

XOXO,
Annie.

[SoCalGirl]

What I mean is, Panhellenic distributes a lists of all the financial obligations associated with each chapter. So when you come through the door, a sister already knows that you know what it costs. So why would a sister bring up the money issue. If the money is no prob, then no point of discussing it. If it's a prob and the rushee is concerned, the sister may make the rushee uncomfortable.

That said, I don't see a problem with the rushee bringing up finacial concerns. However, during formal rush, the Rho Chi is the first one you'll want to take these questions too.

I've yet to hear of a chapter that does not have payment plans. So just realize that there are probably few sisters in the chapter that lay out all the money at once. And the pledge period is the most expensive. You'll have lots of one time fees during that time.

Also keep in mind that chapters with houses, like SDSU, will cost more due to the expenses of maintaining the house. However, living in a sorority house is usually cheaper than living in a dorm or off campus.

[justamom]

I agree with everything SoCalGirl said. There was one point in particular that kind of jumped out at me.
However, during formal rush, the Rho Chi is the first one you'll want to take these questions too.

Last year this subject came up and there were excellent points made on BOTH sides, to ask or NOT to ask an active about finances. Lets assume your friend goes all the way to the end of recruitment and is extended a bid. At the last moment, she drops.
Another girl, who had no fnancial reservations, would have LOVED
to be a member of XYZ, but due to quota, did not receive a bid.
That would be sad.

On the OTHER hand, some posters seemed to think if you made MONEY an issue to discuss or talked about needing to get a part time job, the active could take that information and present it during discussion. It COULD make a difference if there are 20 other great PNMs being discussed that had NO financial question marks connected to them. Am I making sense?

Back to SoCalGirl-Everyone should have access to that information and be able to make a thoughtful decision.

[aephi alum]

At my school, sororities distributed little half-sheets of financial information during round 1. These included everything - dues, initiation fee, badge fee, etc - along with a sum total of what you'd be expected to pay during your first semester and during subsequent semesters. That way, if you knew there was no way you could possibly pay, you could drop out at the beginning. All sororities also offered payment plans where you could pay in, say, 3 installments over the semester - a good thing if you're relying on a job to make those payments.

The first semester is, of course, the most expensive. I would say, if you feel you can meet your financial obligations during subsequent semesters, and it's just those one-time fees that are the hurdle, then borrow a couple hundred bucks from your parents for that first term and go for it.

[AOII_LB93]

Something you all might want to consider is the fact that NPC sororities(I'm pretty sure) are all NON-PROFIT organizations, which means if you get your parents(or even if you pay yourself) to pay all your dues, they can write it off on taxes as a deduction to a charitable organization. I found this out as an alum....how disappointed am I? I think some girls are even able to write of rent for living in the house....I know AOII is non-profit, what about the rest of the NPCs?

[bruinaphi]

There are different types of nonprofit organizations and paying dues is not a tax deductible expense under the Internal Revenue Code. I believe that NPC sororities are 501(c)(7) corporations under the IRC and their chapters are covered by their group exemption. This is why it is so important that our philanthropic donations go through our foundations which are 501(c)(3) corporations under the Internal Revenue Code.

Even if a group is a 501(c)(3), my understanding is that donations would only be tax deductible if you are not receiving a service for the money (i.e., when you pay to go to a benefit you will usually be told that even though your ticket is $275 only $100 is tax deductible b/c the rest goes to pay for the benefit).

[Rudey]

I thought fraternities/sororities were Not-for-profit as opposed to Non-profit. But then again, I am no bean counter.

-Rudey

[Tom Earp]

Rudey, for your info the IRS screwed us on most of the deals that would benefit not only us but charity events! Dont whack us on charity events as the money goes to the charity but is not tax deductable for the Chaper unless the Educational Foundation!

They even put a stop to donating to the Ed. Fund and then loaning money with a bonafide pay back loan!

Once again, the Greek Orgs gets screwed for something that we do and love!