Incorporated House Association Presidents Maintaining the Building Blocks of your Chapter

Today’s Blueprint Overview Responsibilities Members Board of Directors Finances Reporting Insurance Recognition Housing Trends Recruiting & Retaining Volunteers Essentials of an Orderly House

Purpose of House Associations To provide a safe and secure living and/or meeting area. To protect the assets of the Fraternity and to fulfill its fiduciary responsibilities.

Types of Housing Traditional Chapter House Panhellenic Resident Hall Chapter Suite Rental Facility No Housing

Types of House Associations Incorporated Unincorporated The corporation which leases / owns its properties for the benefit of its affiliated collegiate chapter. The association does not own real property but may own / maintain furnishings for the benefit of its affiliated collegiate chapter.

Governing Documents Articles of Incorporation Bylaws Defines the corporation Outlines the IRS 501(c) designation of the corporation Filed with Secretary of State Bylaws Defines the operations of the House Association Outlines number of members of Board of Directors Should be reviewed every four years & submitted to Documents Audit Committee for approval

Functions of the House Association Own and/or manage real property for the collegiate chapter Lease the chapter facility to the collegiate chapter Furnish a suite or meeting room for the collegiate chapter Maintain equipment and furnishings Analyze long-term facility and financial needs

Functions of the House Association Maintain accurate financial records Obtain loans when necessary Enter into contracts when applicable Participate in the Alpha Gamma Delta Fraternity Master Insurance Program Assure that tax returns are filed and property taxes are paid by the appropriate due dates

Chapter Responsibilities Lease the facility from the house association Collect Property Support Payments from members and transfer those payments to the House Association Treasurer immediately after collection Make timely and complete rental payments Pay for all utilities and consumables Transfer collegiate chapter surplus funds to the house association as outlined in the collegiate chapter Bylaws

Chapter Responsibilities Pay repair bills for damage to house association property caused by members or guests Report any needed repairs or replacements to Board of Directors through Property Coordinator Pay for any small repairs as outlined by lease agreement Secure approval from Board of Directors prior to spending any funds on the facility FILL THE HOUSE

Who is Responsible? House Association Collegiate Chapter Collecting rent from individual members Paying for a plumber to un-stop a toilet Replacing sink when it cracks Obtaining loans for capital improvements Installing a security system

Who is Responsible? House Association Collegiate Chapter Replacing a window broken by an intruder Replacing a window broken by a member Landscape planning Landscape maintenance Installing wireless internet access

Who is Responsible? House Association Collegiate Chapter Paying for monthly internet service Paying property taxes Paying property insurance Paying liability insurance Hiring and supervising employees

Voting Members Three classifications of members in Good Standing: Collegiate members who have completed Property Support Payments Affiliated members of the alumnae chapter, collegiate chapter, or house association Alumnae members of the collegiate chapter

Relationships

Board of Directors

Board of Directors Officers Members-At-Large President Vice President Treasurer Secretary Elected for 2-year terms, alternating years Members-At-Large Number determined by bylaws

Board of Directors Role Conduct the day-to-day business of the house association Elected by the entire house association at the annual meeting Officers are elected alumnae Present an annual program explaining the duties, functions, and goals of the house association Present an annual program on fire safety

Board of Directors Meetings Held in accordance with house association’s bylaws Give proper notice to all meetings to the members of the Board of Directors Select a meeting location that facilitates an efficient meeting as well as attendance of all board members (INCLUDING collegians)

Board of Directors Meetings May meet as often as once per month if managing housing facilities, while others may only need to meet quarterly May invite the Resident Supervisor as a guest to a part of the Board of Directors meetings, however, she does not have a vote Use parliamentary procedure and Robert’s Rules of Order Send minutes to HA Specialist

Fraternity Support

Committees Nominating & Bylaws Decorating* Maintenance* Landscape & Grounds Special Gifts / Fund Raising Others * Must include at least one collegiate member

Annual Meeting of the Membership Hold at a time & place convenient for alumnae and especially collegians to attend Send an annual meeting notice and proxy to all members of the house association Publish the meeting notice and proxy REQUIRED EVENT for collegiate members

Annual Meeting of the Membership Elect the Board of Directors ALL members of the house association can vote during the elections Act on any business coming before the house association Present the annual financial statements

Electing Officers During the Annual Meeting of the Membership, members elect the Directors. At the Annual Meeting of the Board of Directors, the members of the board elect the individual House Association officers. Officers serve for a two-year term. Terms should be staggered so that a new board is not elected every two years.

Lease Agreements (Chapter to HA) Should be sufficiently specific and inclusive to outline duties and responsibilities of the chapter and the house association so there will be no misunderstandings Collegiate chapter and house association should keep copies of this lease Send one copy of the lease agreement to the House Associations Specialist by June 1

Lease Agreements (HA to University) Agreements must be reviewed by DHA and HAS prior to signing Some universities will wrap relationship statements into lease agreements Constitution & Bylaws Requests GPA Requirements Budgets & Financials Ritual Judicial process

House Association Income

Setting Rent Amounts Rent is set without regard to number of beds House Association IS NOT RESPONSIBLE for finding members to fill the house. Must (at a minimum) cover mortgage payments, maintenance costs, and insurance Be competitive with university dormitories, off-campus housing, and other NPC groups’ facilities Have a complete understanding of income picture (including dues and fees) before setting rent

Budgets In January, the House Association should prepare a budget of expected income and expenses for the upcoming year. Deliver rent amount to collegians in February Report on current budget and review next year’s budget during annual meeting of the membership.

Journals House Association Treasurer should keep an income and disbursements journal for the corporation All income, bills paid, and other expenses should be detailed Disbursement key available from your HAS

Checks TWO SIGNATURES MUST BE ON EVERY CHECK WRITTEN BY THE HOUSE ASSOCIATION TWO SIGNATURES MUST BE ON EVERY CHECK WRITTEN BY THE HOUSE ASSOCIATION TWO SIGNATURES MUST BE ON EVERY CHECK WRITTEN BY THE HOUSE ASSOCIATION TWO SIGNATURES MUST BE ON EVERY CHECK WRITTEN BY THE HOUSE ASSOCIATION

IRS Designations Entity IRS Corporation Description Employees? Accept tax deductible donations? Collegiate Chapters 501(c)(7) Social and Recreational Clubs Yes No Incorporated House Associations 501(c)(2) Title Holding Corporation for Exempt Organization No** No* International Fraternity Foundation 501(c)(3) Religious, Educational, Charitable, Scientific, or Literary (among others) Organizations *Collegiate Housing & Infrastructure Act **Although the IRS allows 501(c)(7) organizations to have employees, no Alpha Gamma Delta House Association employs any personnel.

IRS Regulations – 501(c)(2) Corporation IRS Publication 557: The corporate charter that you submit upon application must confine the purposes and powers of your organization to holding title to property, collecting income from the property, and turning the income over to an exempt organization. You must show that your corporation is required to turn over the entire income from that property, less expenses, to one or more exempt organizations.

IRS Regulations – 501(c)(2) Corporation IRS Publication 557 (ctd): The term ‘expenses’ (for this purpose) includes not only ordinary and necessary expenses paid or incurred, but also reasonable additions or depreciation reserves…. In addition, the title-holding corporation may retain part of its income each year to apply to debt on property to which it holds title. Donations to an exempt title-holding corporation…are not deductible as charitable contributions on the donor’s federal income tax return.

What does it all mean? The corporate charter that you submit upon application must confine the purposes and powers of your organization to holding title to property, collecting income from the property, and turning the income over to an exempt organization. Your corporation’s purpose is to own & maintain property. You agree to turn over income to the International Fraternity at the end of the fiscal year. No gain of income year to year.

What does it all mean? You must show that your corporation is required to turn over the entire income from that property, less expenses, to one or more exempt organizations. Your Articles of Incorporation state that the purpose of your corporation is to hold title to property, collect income from that property, and transfer that income (less expenses) to the Alpha Gamma Delta Fraternity.

What does it all mean? The term ‘expenses’ (for this purpose) includes not only ordinary and necessary expenses paid or incurred, but also reasonable additions or depreciation reserves…. According to the IRS, you do not have to transfer income to the Fraternity for any near-term improvements that you plan to make to the structure, either for routine maintenance or for impending capital improvements. If you do not plan to need the funds in the two to three months, you should transfer the funds.

What does it all mean? In addition, the title-holding corporation may retain part of its income each year to apply to debt on property to which it hold title. At the end of your fiscal year, you can hold back the amount you’ll need for mortgage or other loan payments until your next income is received.

What does it all mean? Donations to an exempt title-holding corporation…are not deductible as charitable contributions on the donor’s federal income tax return. Any donations you receive from individuals are NOT tax deductible to the donor. Any fundraising efforts you undertake MUST include this information on the materials. See Collegiate Housing & Infrastructure Act of 2007 later in presentation.

Excess Funds – What happens to our money? Excess funds are held in an account with IHQ in your House Association’s name. The funds DO NOT go away! Funds earn interest and have service fees applied to them just as they would at most banks. Service fees & interest rates vary Service fee is capped at 3.25% and is always at least 0.5% lower than current interest rate. Service fee is only applied to the first $25,000 held at IHQ.

Excess Funds – What happens to our money? When the House Association is ready to use the funds, submit “Request for Distribution” form to HAS Amount requested Purpose of disbursement Five Year Plan Three bids received Name/address to send check HAS reviews, approves, and sends form to IHQ Assuming no issues, check is sent during next check run (approx. every two weeks)

Fraternity Policy Obtain written approval from Director of House Associations before: Buying or selling property Building or remodeling a house Undertaking a major decorating project Signing a lease (excludes the lease agreement with the collegiate chapter) Making any major financial commitment

Loan Overview Local banking institutions International Fraternity CAN NOT be listed as a guarantor of an individual HA loan Endowment Fund loans

Why Fundraise? Aging facility Chapter has outgrown current space Complete overhaul to major system(s) in house Upgrades required to meet current safety codes Keep up with other NPC organizations on campus Major redecorating projects needed

Fundraising Guidelines Must be conducted by the collegiate or alumnae chapter who receive income and make a gift to the house association. IRS Regulations only allow 501(c)(2) organizations to take in income from their property Funds are not raised in the name of the House Association NOT “Alpha Gamma Delta House Association Yard Sale” BUT “Alpha Gamma Delta Yard Sale”

Fundraising Guidelines May solicit among own alumnae but not solicit other chapters, clubs, or members without International Council approval Collegiate chapters can solicit fundraising donations from parents of members, but cannot solicit from other non-members without services provided Parent’s Club Funds are brought in to the alumnae / collegiate chapter and are then gifted to the House Association

Fundraising Guidelines The House Association may not receive non-member income directly Collegiate / alumnae chapter can hold fundraisers for non-members Funds are taken in by the chapter and donated as a gift to the House Association

Fundraising Guidelines Donations are not tax deductible All paperwork, letters, postcards, signs, etc. to potential donors must include the words “DONATIONS ARE NOT TAX DEDUCTIBLE” Reiterate this information as often as possible to potential donors

Fundraising Guidelines All fund raising plans must be approved by DHA AFTER you have a plan and BEFORE you begin to execute it, notify DHA Send copy of your plan and draft of materials Include the rough timeline of the campaign Outline the specific distribution of the income received

Top Fundraising Tips People give to other people People give because of self interest and because they are ASKED Money follows people Get to know a key alumna so that she introduces you to others Be specific when asking for money “10 Top Fundraising Tips.” Richard Male & Associates. Retrieved March 24, 2007 <http://www.richardmale.com/richtips20060810.htm>

Top Fundraising Tips Plan ahead; raising money takes TIME Diversify your revenue Use media and marketing to position your organization for success Fundraising is an every day art “10 Top Fundraising Tips.” Richard Male & Associates. Retrieved March 24, 2007 <http://www.richardmale.com/richtips20060810.htm>

Fundraising Tips & Tricks START EARLY Develop a good working relationship with collegiate members, advisors, and alumnae chapter Develop your vision and goals Compile an accurate alumnae mailing list

Fundraising Tips & Tricks Survey your alumnae Communicate, communicate, communicate your vision Alumnae NEED to feel welcome and informed before they will send money

Donor Management Create varying donor levels for varying incomes Identify creative ways of offering a ‘return’ Named room dedications New member class dedications/Senior class dedications Personalized bricks Create multi-year pledge donations (& follow up!) Keep accurate records of donations Follow up with personalized thank you notes Don’t leave them hanging

Reporting Requirements Meeting minutes Annual Reports 990/990T Lease Agreements Excess Funds Insurance Payments *See handout for more details

Insurance Property Insurance Liability Insurance Boiler Insurance Builder’s Risk Insurance Fidelity Bonding

Insurance MJ Insurance provides insurance for 25 NPC organizations Web Site is www.mjinsurance.com/sorority Library Request Certificate of Insurance Directory Claims Reporting Notify your HA Specialist of any changes Mention Certificate of Property Insurance

Recognition House Association Five Star Program Emily Butterfield House Association Award

Incorporated House Association Five Star Award Filing the Annual Report with Annual Review and Form 990/990T on time and to the correct recipients Paying the insurance bill on time. Sending excess funds to the Fraternity Reserve Account. Reporting Sending the updated Five Year Plan with the Annual Report Sending the current inventory with the Annual Report Filing the Archives Report on time

Incorporated House Association Five Star Award Meetings Sending meeting minutes to the DHA and HAS within 10 days Holding BoD meetings with collegians and alumnae present Mailing notice of the annual meeting and proxy to the membership Holding the annual meeting with collegians and alumnae present Programming Present a relationship program to the collegiate chapter annually Present a fire safety program to the collegiate chapter annually

Emily Butterfield House Association Award Biennial award given at Convention Nominated by IC and HA Committee Fulfill the general HA responsibilities outlined in the House Association Handbook Maintain and encourage effective communication between the collegiate chapter and the HA Maintain and encourage effective communication between the HA and the HA Committee Complete all requirements for the Five Star Award

Housing Trends Changing generational expectations More requests for single rooms Expected amenities Availability of off-campus housing Aging facilities nearing the end of their useful lives Need for capital fundraising

Housing Trends University Housing Improvements In 1997, median cost per square foot of new residence hall was $75. In 2007, that number ranges from $123 to $192, with a median of $150. Abramson, Paul. “2007 College Construction Report” College Planning & Management. Retrieved 10 April 2007 <http://www.peterli.com/global/pdfs/CPMConstruction2007.pdf>

Government & Housing Collegiate Housing & Infrastructure Act of 2007 Amend IRS code to allow for tax-deductible contributions for collegiate housing and infrastructure improvements Collegiate Fire Prevention Act Grants awarded for fire prevention system installation

Recruiting & Retaining Volunteers What does it mean to be a leader? A good leader is someone who… Has integrity and authenticity Possesses a sense of humor Cares for others and their well-being Thinks positively Celebrates! Knows that principles are more important than rules George, Melvin. “Personal Characteristics of Leaders.” Project Kaleidoscope. Retrieved 9 April 2007 <http://www.pkal.org/documents/George_Personal-Characteristics-of-Leaders.pdf>

Recruiting & Retaining Volunteers The trouble: “If I don’t do it, no one will.” President’s role is to be a leader and get people involved, not do it all herself If you have them, use them. Make every board member responsible for something Many hands make light the load. Use your committees and don’t be afraid to ask women to volunteer -Chris Usry-Arnold, President, Gamma Phi House Association

Recruiting & Retaining Volunteers Sometimes, a girl just likes to be asked. Asked for a update? Perhaps she’d like to help. Celebrate the successes Provide supportive feedback as well as recognition for a job well done. Know when it’s time to leave the party. Remember to let volunteers know that it’s only a 2-year commitment. -Chris Usry-Arnold, President, Gamma Phi House Association

What motivates your volunteers? Achievement Power Affiliation Recognition Altruism Skelly, JoAnne. “Motivating Volunteers” University of Nevada Cooperative Extension. Retrieved 10 April 2007 <http://www.unce.unr.edu/publications/FS00/FS0030.pdf>

Volunteer Motivation - Achievement Volunteer is looking for situations to excel She likes to out-perform others She enjoys striving for lofty goals Working Relationships Ask for her help in setting the work pace and methods Give her challenging tasks that require efficiency Allow her to learn new skills or material Give her clear feedback on her performance Skelly, JoAnne. “Motivating Volunteers” University of Nevada Cooperative Extension. Retrieved 10 April 2007 <http://www.unce.unr.edu/publications/FS00/FS0030.pdf>

Volunteer Motivation - Power Volunteer wants to have an impact She wants to win arguments and have others do things her way She seeks ways to influence through communication Working Relationships Give her opportunities to direct others Allow her to implement changes Give her tasks that require managerial skills Ask her how jobs should be done Skelly, JoAnne. “Motivating Volunteers” University of Nevada Cooperative Extension. Retrieved 10 April 2007 <http://www.unce.unr.edu/publications/FS00/FS0030.pdf>

Volunteer Motivation - Affiliation Volunteer wants to build friendships Social aspects of volunteering appeal to them She likes being with others, wants to help people, and cares about others’ feelings Working Relationships Let her work on committees with others Find tasks that require cooperation Give her social time to interact with others Allow plenty of relationship building time and activities Skelly, JoAnne. “Motivating Volunteers” University of Nevada Cooperative Extension. Retrieved 10 April 2007 <http://www.unce.unr.edu/publications/FS00/FS0030.pdf>

Volunteer Motivation - Recognition Prestige and status are important Prefer short-term tasks with well-defined endings She enjoys public relations Working Relationships Give her work that can be completed quickly Let her be in high-visibility positions Award her with plaques, certificates, or public announcements of their achievements Skelly, JoAnne. “Motivating Volunteers” University of Nevada Cooperative Extension. Retrieved 10 April 2007 <http://www.unce.unr.edu/publications/FS00/FS0030.pdf>

Volunteer Motivation - Altruism Volunteers pursue attainment for the greater good She has high ideals and values She cares about accountability Working Relationships Include her with others of similar values and goals Have her work with highly committed people Provide opportunities that revolve around the mission of the organization Skelly, JoAnne. “Motivating Volunteers” University of Nevada Cooperative Extension. Retrieved 10 April 2007 <http://www.unce.unr.edu/publications/FS00/FS0030.pdf>

Success with Volunteers Determine their needs Give them jobs they enjoy and from which they can learn Involve them in planning and decision-making Show them their experience is valued Reward volunteers from the moment of initial contact “Recruitment is only the beginning of a volunteer program. Retention is vital to program success.” Skelly, JoAnne. “Motivating Volunteers” University of Nevada Cooperative Extension. Retrieved 10 April 2007 <http://www.unce.unr.edu/publications/FS00/FS0030.pdf>

Essentials of an Orderly House Renew your state license every year (if applicable) You may not be able to obtain a bank loan without it Employ a professional to perform your annual audit Know where your important items are located Current corporate state license IRS letter for your HA Articles of Incorporation Current bylaws Current chapter lease Floor plans & blue prints University lease (if applicable) Deed to the property Chapter seal Loan papers Most recent appraisal

Essentials of an Orderly House Stay on top of campus and NPC organizations’ rent amounts Ensure your lease outlines when and how you are to be paid Maintain a list of reliable service providers Create a directory of ‘go-to’ alumnae for special projects Spend money every year on preventive maintenance and decorative upgrades

Safe Deposit Box Articles of Incorporation Bylaws Property Title(s) Mortgages and/or loan agreements Leases Contracts Investments Tax exemption letter & Federal Identification Number Blueprints (if possible) Current Inventory

Keys to a Successful House Association A committed group of volunteers who collaborate to form a team, have a vision, can complete a task and believe in their passion for success.

Questions?