CEA and CHA- Chapter House/Education Fund
The IRS has acknowledged that fraternity houses may have areas, which are designated for strictly educational purposes. Therefore, the cost to purchase, construct, refurbish, maintain and furnish such areas is qualified to receive tax-deductible funding. As they relate to fraternity chapters, some examples of IRS-qualified purposes are:
- Constructing, renovating and refurbishing educational areas of the chapter house i.e. computer room, library, study rooms, etc.
- Desks, books, bookcases, lighting, etc. in the educational areas.
- Computer hardware and software for use by general membership of the chapter.
- Installment of high-speed capacity modem wiring to the chapter house.
- Grants to attend educational conferences, such as the Leadership Institute and Presidents Academy.
- Scholarship grants to members of your chapter.
- A one time 5% administrative (overhead) fee (but not less than $5) on individual alumni contributions will be paid to the DUEF's general fund. For example: A gift of $1,000 will result in a $950 deposit to the CEA or CHA and $50 to the DUEF general fund.
- A 1% annualized maintenance fee is applied to Chapter Housing Accounts (CHA).
- This fund does not seek to build principal, consequently pays no interest.
- To allow for easy participation, no restrictions are placed on minimum size of gifts or number of gifts accepted. (Note in Policy one that gifts less than $500 will incur a $5 administration fee.)
- Grant requests may be submitted and processed four times a year-January 1, April 1, July 1 and October 1-to the DUEF for consideration. The DUEF Board of Trustees must approve the application before any grants are paid.
- The minimum payout considered for a grant is $500.
- Each CEA/CHA must have an alumni chapter in good standing designated with oversight responsibilities.
- A written plan must be submitted at the time a CEA/CHA is established that outlines the educational objectives/purposes as well as for each proposed project. This plan should include how contributions will be used, anticipated fundraising goal of the project, the time period for a campaign and budget.
- In the event that a chapter becomes inactive, or has its charter suspended for a period of at least eight (8) consecutive years, the assets in each such inactive or suspended chapter's CEA fund will revert to the endowment of the DUEF.