Delta Upsilon Foundation


CEA Information

Chapter Education Accounts Explained...
In the 1990s, the DU Foundation began providing grants directly to chapters through the Chapter Educational Accounts (CEA), which offers a tax-deductible vehicle for individual chapter fundraising.  CEAs were created for potential donors who wanted to make a significant gift to the educational programs of a specific chapter but may have been reluctant to do so because the gift was not deductible for Federal income tax purposes.

CEAs offer chapters the opportunity to accept restricted funds for their chapter's educational needs within the endowment of the DUEF.  Donors can make gifts to these restricted funds and claim a tax deduction for the amount of the gift on Schedule A of their U.S. Federal Income Tax returns. Gifts to these funds could take the form of cash, securities, real property, etc. and likely qualify for some employer matching gift programs. In addition, individuals may also realize significant tax advantages by including a provision for a CEA in a bequest or other estate plans.

Moreover, establshing a CEA negates the need for individual chapters to engage in the costly and time-consuming process of establishing and maintaining their own 501 (c)(3) entities, in order to offer tax deductibility to donors.
The Chapter Educational Account (CEA) consists of three separate funds.  By way of definition...

The primary characteristics of the Chapter House/Educational Fund is that it:
  • Is established to meet educational needs over a defined period.
  • Does not seek to build principal, but to offer liquidity.

Learn more about the Chapter House/Education Fund

The primary characteristics of the Endowment Fund is that it:

  • Is established to permanently meet educational needs of a chapter.
  • Produces interest that is used to fund educational needs.

Learn more about the Endowment Fund

The primary characteristics of the Custodial Fund is that it:

  • Is established to seek management of significant existing financial assets.
  • Produces interest that is used to fund educational needs.

Learn more about the Custodial Fund

Gifts to the Chapter Educational Account program will continue to be restricted in their use to one particular chapter of the Fraternity. Gifts will be accepted and administered in accordance with the rules and regulations of the Internal Revenue Service.

Assets held in a CEA will continue to be managed and invested along with the other assets managed by the Foundation. Gifts designated for a specific chapter will be used exclusively for charitable and educational purposes that benefit the members of the chapter unless the Trustees of the DUEF determine that such restricted use would jeopardize the Foundation's exempt status or would be inconsistent with the Foundation's charitable and educational purposes. The Trustees expect they will be able to use all donations for their designated purposes.

Each chapter may establish its own CEA within the DUEF.  All gifts to a CEA will be held by the DUEF as a restricted gift for that chapter.  

Responsibilities of the Delta Upsilon Foundation
  • CEA funds will be accounted separately for the CEA but held and invested with the DUEF general funds. In the event a chapter with an active CEA shall be declared inactive by action of the Board of Directors of the DUIF and that status remains in effect for a period of at least eight (8) consecutive years, the assets in each such inactive chapter's CEA fund will revert to the endowment of the DUEF.
  • Receive and invest all designated funds in a timely and professional manner.
  • Send written acknowledgment upon receipt of a gift.
  • Provide regular quarterly reports to the appropriate alumni chapter detailing contributors, deposits, withdrawals, administrative fees, balance and income.
  • Charge the appropriate one-time administrative (overhead) fee and annual service fee.
  • When capital projects are undertaken, the Foundation staff may be asked to provide assistance and counsel in making certain the campaign is properly developed, managed and executed. Staff will not assume responsibility for the project. However, depending on the scope of the project and time required, it may be appropriate for the Foundation to charge an administrative fee or consulting fee. This arrangement would be negotiated separately and not tied to a projects goal. Any fees collected would be deposited into the Foundation's general fund.
  • Following distributions of any CEA grant funds for any educational purpose, the Foundation will require written substantiation that funds were, in fact, used for their intended educational purpose.
  • Ensure the ongoing use of educational areas for educational purposes.

Establishing a CEA is quick, easy and free.  With just a few minutes of paperwork, you can immediately begin accepting restricted, tax-deductible gifts for your chapter.

If you are interested in creating a Chapter Educational Account (CEA) for the benefit of your chapter, please contact Justin Kirk, Boise State '00, DUEF Executive Director at 317-875-8900 or via email.