House Association Specialists Supporting the Building Blocks of Our Chapters

Today’s Blueprint House Association Specialist Job Description Review House Association Basics Fundraising Reporting Insurance Awards Housing Trends

What did I get myself into? Serve as the housing expert for your provinces Provide first-line support to Province Directors and House Associations regarding housing issues Work to improve the functioning of the House Associations in your provinces Review and comment on annual House Association reporting Maintain regular contact with your House Associations

Other Specific Duties Participate in province conference calls Provide House Association officer training as requested/required Tabulate Five Star Award criteria Provide input to Chapter Roll for International Council Attend Convention, The Leadership Conference (TLC), or other volunteer training as applicable Check email daily, responding within 24 hours Respond cheerfully when called upon to perform other duties and assignments

Fraternity Support – Where do we fit in?

Alpha Gamma Delta Chapters are required to have a House Association Did you know? ALL Alpha Gamma Delta Chapters are required to have a House Association

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.

Incorporated House Associations House and land owned by the House Association House owned by the House Association; land owned by college or university House and land owned by the college or university but college or university requires the House Association to be incorporated in order to sign a lease agreement

Unincorporated House Associations House and land owned by the college or university but college or university does not require the House Association to be incorporated in order to sign a lease agreement House owned by a private individual or corporation Panhellenic Residence Hall Suite/Lodge/Apartment No housing

Governing Documents Incorporated Unincorporated Articles of Incorporation Bylaws Articles of Association

Governing Documents - Incorporated Articles of Incorporation 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 (new requirement)

Governing Documents - Unincorporated Articles of Association Defines the purpose of the organization: furnishing & maintaining any public areas or renting/leasing of property for housing/meeting facilities and furnishings 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 (new requirement)

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

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 Director of House Associations and House Association Specialist prior to signing Some universities will wrap relationship statements into lease agreements Constitution & Bylaws Requests GPA Requirements Budgets & Financials Ritual Judicial process

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

Outside House Association Authority Setting and maintaining house capacity House Rules & Chapter Bylaws Individual member discipline Employees Utilities and Consumables

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 to the collegiate chapter: An annual program explaining the duties, functions, and goals of the house association 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 House Association Specialist

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 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 as to not elect a new board every two years.

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 House Association Specialist

Unincorporated HA – Funds held at IHQ Finance Advisor CAN be the House Association President & Chapter Advisor CAN be the House Association Treasurer Chapter collects House Association dues from members Vice President Finance / Finance Advisor sends check to International Headquarters with total House Association dues each term. International Headquarters staff holds funds in an account specifically for the chapter’s House Association

Unincorporated HA – Funds held at IHQ International Headquarters staff deducts property insurance fee from that account International Headquarters staff sends Finance Advisor banking information for chapter’s 990 Submit request to House Association Specialist for distribution of funds

Unincorporated HA – Funds held locally House Association President & Treasurer CANNOT be the Finance Advisor and the Chapter Advisor Chapter collects House Association dues from members Vice President Finance / Finance Advisor sends check to House Association Treasurer with total House Association dues each semester. House Association Treasurer deposits the funds into a local bank account

Unincorporated HA – Funds held locally International Headquarters staff send invoice for property insurance to House Association House Association Treasurer delivers banking information to Finance Advisor for chapter’s 990 Submit request to House Associations Specialist for expenditure over $1000

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 two 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 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 2005 later in presentation.

Excess Funds – What happens to our money? Excess funds are held in an account with International Headquarters 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 House Association Specialist Amount requested Purpose of disbursement Five Year Plan Three bids received Name/address to send check House Association Specialist reviews, approves, and sends form to International Headquarters 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 as guarantor Fraternity CAN NOT be listed as a guarantor of an individual House Association 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 Director of House Associations AFTER you have a plan and BEFORE you begin to execute it, notify Director of House Associations Send copy of your plan and draft of materials Include the rough timeline of the campaign Outline the specific distribution of the income received

House Association Regular Reporting Requirements Submitted by House Association Submitted by Specialist Meeting Minutes Lease Agreements with University Annual Report with Annual Review Financial Reports Five Year Plan Inventory Archives Report Notice & Proxy Bylaws Chapter Roll Five Star Tally Other information as requested

Regular Fraternity Reporting Report / Correspondence Sender Frequency Leadership Consultant / Advisor Reports Chapter Services Following visits Report on Budget Finance Specialists Annually* House Association Aging Report Accounting & Operations Monthly* Probation / Alert Reports Monthly Status of Incorporated HA 990 filing Annually Skirouros Member Services Periodically House Association Account Balances * These reports were not consistently sent during the 2005-2007 biennium

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 House Association 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 Director of House Association and House Association Specialist within 10 days Holding Board of Directors 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

Uncorporated House Association Five Star Award Filing the Annual Report with Annual Review on time and to the correct recipients Paying the insurance bill on time. 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

Uncorporated House Association Five Star Award Meetings Sending meeting minutes to the Director of House Associations and House Association Specialist within 10 days Holding Board of Directors meetings 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 International Council and House Associations Committee Fulfill the general House Association responsibilities outlined in the House Association Handbook Maintain and encourage effective communication between the collegiate chapter and the House Association Maintain and encourage effective communication between the House Association and the House Association Committee Complete all requirements for the Five Star Award

Housing Trends Changing generational expectations More requests for single rooms Expected amenities University housing improvements 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

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

Successful House Association Specialists A volunteer that regularly communicates with and supports her Province Directors and House Associations, understands her material, is willing to lend a helping hand, and is not afraid to ask questions.

Questions?