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  • 1.  Fundraising for Greek Life

    Posted 11-22-2024 02:35 PM

    Hello,

    I have looked at previous posts and found the documentation about fundraising for fraternities and sororities on the listserv, but still have a question. My understanding has always been that we cannot fundraise and intake/receipt gifts for fraternities and sororities as they have their own 501(c)3 status through their parent organizations.  Our campus activities department is asking about fundraising for our 4 fraternity/sorority chapters on campus. They would like to use the money raised to help students pay for the dues to join and to make Greek involvement more financially accessible to students.  We've reached out to several peer organizations who do have Greek life fundraising programs that their Annual Fund teams oversee. Some are fundraising to support activities and programs and others are fundraising for facility improvements. My question is, are these donations able to be receipted by the college for tax deductible purposes?  Does it depend on the type of fraternity/sorority? I'm not sure I'm understanding what we would or would not be able to include in our fundraising and if we would be able to receipt the donors.



    ------------------------------
    Kathleen Bauer
    Colorado College
    kbauer@coloradocollege.edu
    ------------------------------


  • 2.  RE: Fundraising for Greek Life

    Posted 11-22-2024 02:45 PM
      |   view attached
    What matters from an IRS perspective is that you cannot make tax-deductible contributions to benefit social organizations.

    You can contribute to support Greek facilities, but only if the College owns the facilities and is for College-owned infrastructure. For instance, at NC State we accepted donations to our Greek Village but only for streets, sidewalks, and lighting.

    I have attached the original IRS stance on this topic.

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987






  • 3.  RE: Fundraising for Greek Life

    Posted 12-11-2024 10:13 AM

    I have a quick follow-up question.  We have a donor who attempted to make a donation to a fraternity chapter last year.  I explained that we were unable to accept that donation for that purpose and offered alternatives.  We went back and forth a couple of times, and he never accepted an alternative.  He has now reached out again asking if this could be resolved for a donation this year. 

    I would like to send him the "official" IRS stance, but the link on the document is not valid.  Does anyone know of an official government document/weblink that I can provide him to help him understand that I am not making this up?

    Thanks!



    ------------------------------
    Courtney Sims
    Bucknell University
    courtney.sims@bucknell.edu
    ------------------------------



  • 4.  RE: Fundraising for Greek Life

    Posted 12-11-2024 10:55 AM
    A quick Google search will provide dozens of references. Here's a snip from an IRS training (EO CPE) document from 1999.

    image.png

    Here's a well-written memorandum from UPenn:


    Most Greek organizations are further classified as 501c7 organizations - tax-exempt but not eligible to receive deductible donations.

    Just because a link doesn't work doesn't mean the law has changed! You cannot donate to an organization that serves mostly social, not educational, purposes.

    You may also wish to chat with Counsel.

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987







  • 5.  RE: Fundraising for Greek Life

    Posted 12-11-2024 11:11 AM

    There's also this: https://www.irs.gov/pub/irs-tege/rr69-573.pdf

     

    My US$0.02 worth; the usual disclaimers apply.

     

    Good luck!

    Alan

     

    Alan S. Hejnal (he/him)

    Data Quality Manager

     

    SNAGHTML5cbfa34

     






  • 6.  RE: Fundraising for Greek Life

    Posted 12-11-2024 11:22 AM
    And I forgot to mention Publication 526 - page 3 (highlighted):
    image.png


    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987







  • 7.  RE: Fundraising for Greek Life

    Posted 01-09-2025 08:50 AM
    Good morning, all,

    I'm glad I'm sifting through my favorite folder today. I have a major gift officer who has a donor wanting to give a large gift in support of Greek life. I said that's not allowable and connected the MGO to a student support administrator. 

    The administrator then called me and explained the university has expenses for rush week, etc, and could use the support. 

    So, since it's not for a specific chapter, and rather to support student life on campus, with the direction to support Greek life, is this allowable? Or do I ask the MGO to cease and desist?

    Thanks for your help with a new nuance for me,

    Elizabeth

    Elizabeth Tavares
    Sr Assoc Director, Data Integrity
    Loyola University Chicago







  • 8.  RE: Fundraising for Greek Life

    Posted 01-09-2025 09:02 AM
    You'll need to look for advice from Counsel.

    I have found that donations supporting "infrastructure," such as roads, sidewalks, and landscaping on University-owned property are permissible deductible donations. This was the determination of Counsel when I was at NC State.

    However, if the donations support only social activities, especially those only enjoyed by members of the Greek community, they are not.

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987