1

House Corporation Handbook

2

Revised Spring 2016

Table of Contents

Delta Gamma House Corporation - What and Why ......................................................................................... 4

The Housing Team ........................................................................................................................................... 5

The House Director ........................................................................................................................................... 7

Procedure for Hiring the House Director .......................................................................................................... 9

House Director and Chapter Officers................................................................................................................ 9

Annual Responsibilities and Procedures ......................................................................................................... 10

Committees ..................................................................................................................................................... 15

Summary of Annual Procedures for All House Corporations ......................................................................... 20

Annual Meeting .............................................................................................................................................. 24

Reporting Obligations of a House Corporation .............................................................................................. 27

Insurance ........................................................................................................................................................ 29

Worker's Compensation Obligations .............................................................................................................. 35

Construction/Remodeling/Refurbishing/Financing ........................................................................................ 37

Space Needs Summary ................................................................................................................................... 45

Chapter Budgets ............................................................................................................................................. 46

House Corporation Budget ............................................................................................................................. 48

Chapters with Residential Housing ................................................................................................................. 50

Chapters with a Lodge or Suite ....................................................................................................................... 50

Chapters with No Facility ................................................................................................................................ 50

Risk Management ........................................................................................................................................... 51

Crisis Management Emergency Telephone List .............................................................................................. 53

Security System Basic Requirements .............................................................................................................. 54

Safety - Security - Fire Checklist ...................................................................................................................... 55

The Americans with Disabilities Act (ADA) ..................................................................................................... 58

Strategies ........................................................................................................................................................ 60

Fundraising...................................................................................................................................................... 64

Fundraising Guidelines for Non-Member Income .......................................................................................... 64

Fraternity Housing Corporation ...................................................................................................................... 65

3

Classification of House Corporations by the Internal Revenue Service.......................................................... 67

How to apply for a 501(c) tax status ............................................................................................................... 67

Suggestions on How to Fill Out Form 1024 ..................................................................................................... 68

How to Help Protect a House Corporation with a 501(c)2 Designation from Audit ....................................... 70

House Corporation Dissolution Procedures ................................................................................................... 71

Wording of Dissolution Vote ........................................................................................................................... 72

Appendix ......................................................................................................................................................... 73

4

Delta Gamma House Corporation - What and Why

Article XX., Section 1, of the Delta Gamma Constitution states: Council, in its sole discretion, will determine whether there shall be a House Corporation for an existing or anticipated collegiate chapter. House Corporations exist for the purpose of establishing, providing and supporting a suitable social environment for the collegiate chapter including, but not limited to owning, maintaining, equipping and managing a chapter house or facility. All Delta Gamma owned housing will have a house corporation. The alumnae chapter or association organized in the community of the chapter shall be responsible for the formation of such corporation according to local, state or provincial laws and under the direction of Council (see Article XVIII. Section 5).

A house corporation of a Delta Gamma chapter (organized as a

corporation):

Is composed of all collegiate and alumnae members who have paid the house corporation fees as required by the Delta Gamma Constitution and bylaws of that house corporation.

Owns, rents and/or maintains the chapter house, lodge, suite or storage facility rather than the collegiate chapter because of the ever-changing collegiate membership.

Is a separate, legal entity incorporated under a state or province charter.

Seeks federal tax exempt classification under Code Section 501(c)(7) from the IRS within one year of incorporation.

Is administered by a house corporation board, composed of elected directors and ex-officio members.

Owns or rents and/or maintains the chapter house, lodge, suite or storage facility and meets all financial obligations involved in ownership, renting and/or maintenance.

Employs and oversees payroll of persons who assist the chapter (i.e., house director, cook, waiters, houseboys, etc. Catering companies should be treated as a regular vendor and should not be processed through payroll.)

Executes annually a legal agreement (Annual Agreement) between itself and the chapter that states the financial and other obligations of the two groups to each other. Changes in the agreement may be made only through mutual consent and with the approval of the Fraternity Vice President: Finance. Both the chapter and house corporation should have an annual budget that is understood by both parties.

Charges a membership fee which is called the house corporation fee. The amount is determined by Fraternity policy for the type of housing provided.

Charges annual rent, even if there is no housing. Rent (chapter obligation and facility rent, if applicable) is based on costs of debt retirement, rent to a landlord/university, insurance, payroll expenses, taxes, Convention, seminar,

5

accounting fees, grounds upkeep, legal fees, maintenance, trash disposal, storage and small miscellaneous expenses.

Reports annually to the chapter membership the financial condition of the house corporation (including the financial statement, Annual Report, the budget and the status of funds in the account).

The Delta Gamma Housing Team

Vice President: Finance is the elected member of Council who oversees and is responsible for all Delta Gamma Fraternity housing programs.

Director: Housing Development is appointed by Council. She directs the Regional Housing Specialists in supervising all major projects, including but not limited to, new construction, major renovations, acquisitions and sale of property and:

Serves as a director of the Fraternity Housing Corporation Board of Directors.

Serves as a director of the Fraternity Management Corporation Board of Directors.

Serves as a member of the Fraternity Development Committee.

Director: Housing Resources is appointed by Council to co-direct the Fraternity's housing program. She directs the Regional Housing Specialists in supervising all house corporations and:

Maintains a file on each house corporation.

Serves as a director of the Fraternity Housing Corporation Board of Directors.

Serves as a director of the Fraternity Management Corporation Board of Directors. * One of the Directors of Housing will be the Chairman of the Fraternity Housing Corporation and the other will be the Chairman of the Fraternity Management Corporation

Regional Housing Specialists are Fraternity officers who work with the house corporations in their regions. They:

Serve as a liaison between the house corporations and the Fraternity and the Director: Housing Development and Director: Housing Resources, verifying that the house corporation is functioning properly, maintaining chapter housing and meeting financial responsibilities.

Meet with the house corporation boards.

Request information from the house corporation boards.

Aid in enforcing Delta Gamma housing policies.

Maintain a current roster of house corporation officers.

Communicate with house corporation presidents and treasurers.

Communicate with and mentor the chapter director of house management and her adviser.

Communicate with the Fraternity Housing Corporation housing staff regarding each house corporation as needed.

6

Train house corporation officers.

Review preliminary house corporation budgets and approve final budgets.

Serve as a member of the Regional Team.

House Corporation Board is composed of elected directors and ex-officio voting members. The board is regulated as such:

The directors are elected by the corporation at its Annual Meeting. They serve for a term of two years, with the terms staggered between the directors. No director should serve more than three consecutive full terms without two intervening full years off the board. If there is a vacancy left by a director, or the board wishes to appoint additional directors (up to 11), the president may appoint a new director. If a board member is appointed, she shall serve until the next Annual Meeting at which time she will be credited 1 year for time served and, if elected by the membership, fulfill the remainder of her two year term. Terms run from July 1 to June 30. Directors and officers may also be appointed by the Regional Housing Specialist.

The number of directors is determined by the house corporation's bylaws. Delta Gamma House Corporation Model Bylaws stipulate not less than two (2) for unhoused corporations and three (3) for housed corporations and no more than eleven (11) elected directors for both housed and unhoused corporations.

The ex-officio members are: advisory team chairman, local alumnae president, collegiate chapter president, collegiate chapter vice president: finance and the collegiate chapter director of house management. They are voting members of the board.

The house corporation board elects its officers from among the directors. The officers are president, vice president, secretary and treasurer or secretary- treasurer, all of whom are elected at the first board meeting following the Annual Meeting and serve for a minimum of one year. They may be reelected each year until the end of their term as a director, which is a maximum of six (6) consecutive years. The president and/or Regional Housing Specialist may appoint directors and officers if there is a vacancy outside of the normal election cycle. Terms run from July 1 to June 30.

Some of the elected directors may reside in another city as long as they can attend the meetings of the house corporation board.

In order to serve as a director of a house corporation, an alumna must be a life member of that corporation. This may be achieved in one of two ways (1) she is an initiated member of that chapter or (2) she has paid the minimum house corporation fee stated in the house corporation bylaws. She must also be current on her per capita dues to the Fraternity. At house corporation board meetings, the house director and/or chapter operations adviser may be invited to give reports or suggestions at the beginning of the meeting.

Adheres to the alumnae dual office grid, ensuring that if their directors hold more than one volunteer officer position, they may in fact be held concurrently.

Fraternity Housing Corporation, Housing, Human Resources and Insurance Staff

7

members are employed at Delta Gamma Executive Offices. They:

Administer the Fraternity’s insurance program.

Administer the Fraternity Housing Corporation "Fee for Services" programs.

Answer or direct daily individual house corporation requests or questions regarding insurance.

Maintain current files on all house corporations.

Coordinate house corporation budgets and Annual Agreements. Bill collegiate chapters per their Annual Agreement.

Assist participants with analysis of cash flow and fiscal cash management.

Monitor receivables for house corporations.

Processes payables for house corporations.

Process payroll for house corporations.

Generate Annual House Corporation Reports for house corporations.

Prepare and file tax forms house corporations.

Generate reports for the Fraternity Housing Corporation Board of Directors.

Generate employee contracts and assist with employee review process.

Provide house director search services (additional fee).

The House Director

Duties of House Director

The duties of each house director will vary from chapter to chapter. These duties should be clearly stated in the job description that is attached to the house director’s employment agreement and understood by all in involved. Some suggest duties are:

Adhere to campus, Fraternity and chapter policies and rules

Direct all the employees with the approval of the house corporation employment committee.

Supervise management of the house.

Operate the house in accordance with the budgeted allotments for food, kitchen supplies and miscellaneous house expenses, and prepare a budget comparison at the end of each term.

Supervise the maintenance, safety and security of the house.

Supervise and maintain the furniture in its proper location and see that it is kept clean and in good repair.

Encourage, by example, an attitude of decorum during meal hours and instruct the chapter in dining room etiquette.

Create a home atmosphere within the chapter house.

Assist the cook or caterer in planning nutritious and varied meals within the budget and work with the cook to order all food and kitchen supplies.

Keep advisers informed of any disturbing or unusual trends and problems within

8

the chapter.

Acquire and review time sheets of employees, then submit time records to Fraternity Housing Corporation for payments. Keep accurate monthly records and receipts for chapter or house corporation reimbursement if a petty cash account is utilized.

Review annually the House Director Handbook.

Responsibilities of Advisory Team to the House Director

Inform the house director about the function, authority and responsibility of the advisory team.

Provide a roster of adviser names, addresses, telephone numbers and areas of responsibility.

See that the house director understands the operations of the Honor Board. It is the house director's responsibility to report infractions of campus, Fraternity or chapter rules to the president, vice president: social standards or advisory team chairman. The house director is not the chapter disciplinarian and should understand the limitations of her role in discipline.

The chapter operations adviser requests the house director's input before preparing the chapter budget, and the two should meet regularly to discuss payment of house management bills.

See that the house director has copies of the chapter’s house standing rules.

Responsibilities of House Corporation to the House Director

Inform the house director about the function, authority and responsibility of the house corporation.

Provide a roster of board members' names, addresses, telephone numbers and areas of responsibility.

See that the house director has a copy of the House Director Handbook Maintain a list of qualified vendors to assist in emergencies (i.e. electrician,

plumber, general contractors). Arrange training on all alarm systems when applicable. Ensure timely payment of staff through Fraternity Housing Corporation Communicate at all times regarding any ongoing projects. No vendor will perform

tasks without the house director being notified in advance of their arrival. Work with house director to establish vacation schedules and opening and closing

dates of the house. Discuss needed repairs and house director's suggested improvements,

communicates these ideas to appropriate committees for consideration.

9

Procedure for Hiring the House Director

Agreement If the current house director does not plan to return or if her agreement is not renewed, the house corporation employment committee serves to hire a replacement. All members of this committee should be familiar with the House Director Handbook. Terms of Employment The committee determines salary, benefits, methods of advertising, the job description and the interviewing schedule before beginning the search. Additionally, a background search is required prior to employment offers (conducted by Fraternity Housing Corporation). Note: house directors should be paid at least minimum wage. Signing of Agreement The actual employment agreement (the legal agreement) is finalized by the house corporation employment committee (and prepared by Fraternity Housing Corporation). Signing of Appointment Letter The appointment letter is not an agreement nor is it legally binding. It is designed to provide the employee with a job description and outline the pay schedule. This is still finalized by the house corporation employment committee (and prepared by Fraternity Housing Corporation).

Work Schedule The house director is responsible for arranging her schedule. A suggested schedule is as follows:

Planning meals and ordering food 6 hrs Mealtime duty 16 hrs Meeting with officers, advisers, members 12 hrs Emergencies, repairs, inspection, social or campus duties 6 hrs Total equals 40 hrs

House Director and Chapter Officers

The house director will work most closely with three chapter officers. All officers, parents and advisers should respect the work schedule of the house director.

The president

The house director and president must set the pace and tone for the chapter. The house

10

director should: Report to the president any problems within the chapter which require Honor Board

action, including major infractions or repeated infractions of university regulations (when this authority is delegated to the chapter by the administration), the Fraternity Constitution, policies and procedures, the chapter house rules, or civil law committed by a member or new member.

The vice-president: finance

The house director and vp: finance must work together to: Ensure that the chapter's budget allowance for food and supplies is satisfactory to

the house corporation. See that bills, for which the chapter is responsible, are paid promptly to local

merchants. See that the house director's petty cash fund is reasonable and properly

maintained. (The petty cash fund should be reimbursed only after receipts are provided from the house director for expenditures from this account to the vp: finance.)

Ensure that collections are made promptly for all guests eating or remaining overnight in the chapter house.

The director of house management

The house director and director of house management must work closely together at all times, for their jobs are closely aligned. They share the responsibility for:

Proposing house standing rules for chapter approval. Standing rules delineate the course for the chapter to follow in managing chapter affairs and are adopted by a majority vote of the chapter members. The house director should keep a copy of chapter approved house standing rules.

Maintaining communications between the house director and the chapter. Ensuring that the chapter house and grounds are kept in order at all times.

Annual Responsibilities and Procedures

House Corporation Board Responsibilities

Make a five-year plan for buying or building housing, or for remodeling or redecorating housing. This is due by December 1.

Collect rent from the chapter for a suite, room or other quarters rented from the college or university and pay the school rent.

o Neither the house corporation nor the chapter may collect deposits of any kind. Additionally, the house corporation may not fine the collegiate chapter but may recover actual costs associated with repairing damaging, excessive cleaning, or replacement of lost house corporation property through the Fraternity Housing Corporation chapter receivables procedures.

11

The standard Delta Gamma room agreement contains a paragraph in which the resident agrees to a reasonable search of her room and personal property. The decision to conduct a room search is not a house corporation board responsibility/decision/function. House corporation directors do not participate in chapter room searches. Pay all fixed expenses relating to ownership or rental of chapter housing when due, i.e., mortgage, taxes, insurance and payroll expenses.

Provide adequate insurance coverage for the chapter house and its contents, including replacement costs of the house and furnishings and provide adequate liability insurance for the chapter and house corporation.

Provide and maintain housing for the chapter which is comparable to other housing on campus. Delta Gamma housing should always be competitive.

Purchase furnishings for the chapter housing including all dishes, kitchen appliances, large appliances such as commercial mixers, silverware, glasses, lamps, pictures, draperies, furniture and replace such items as needed.

Examine the chapter house at the close of the school year to determine needed repairs or purchases to be made during the summer months.

Arrange for repairs or purchases during school vacation and turn over well- equipped, cleaned and furnished housing to the chapter at the agreed upon time.

Is responsible for heavy cleaning of items such as draperies, carpeting and walls during school vacation.

Maintain locks on outside doors of the chapter housing and ask the director of house management to conduct frequent key inspections. The house corporation may reasonably expect to replace outside locks every three years.

Invite the house director to a board meeting to provide information to the board members when needed.

Pay the fee for commercial general liability, fidelity bonding and director and officer liability insurance covering all house corporation officers to Executive Offices when billed, as long as blanket policies are provided by the Fraternity.

Prepare the Annual House Corporation Report on e-Ops+ by the due date, September 1.

Hold at least four house corporation board meetings yearly for housed groups and two for unhoused groups, with the chapter president, chapter vice president: finance, chapter director of house management, advisory team chairman and local alumnae president in attendance. The meetings should be held in the chapter housing.

Hold an Annual Meeting of the house corporation membership on or around the chapter’s Founders Day. If not possible, the meeting should at least be in the spring semester/quarter of the collegiate chapter to enable the entire collegiate chapter membership to attend. All members of the corporation who have paid the house corporation fee (members of the corporation are initiated members of that chapter or members of another chapter, but who have paid the minimum house corporation fee stated in the house corporation bylaws) must be notified of the meeting’s date, time and location pursuant to the corporation’s bylaws. This can be accomplished through an advertisement in the Fraternity magazine, the ANCHORA.

Is responsible for snow removal, lawn care and yard maintenance. Ensure that every voting member of the house corporation signs both the Conflict

12

of Interest and Whistleblower forms - including ex-officio members who are the collegiate president, collegiate vice president: finance, collegiate director of house management, advisory team chairman and local alumnae president.

o All voting members must disclose any potential conflict of interest to the board and the Office of Housing. Additionally, the member with the potential conflict should be excused from the meeting for discussion and should abstain from voting on any matter in which she has a potential conflict.

Comply with Fraternity Constitution and all Fraternity policies and procedures which pertain to house corporations.

Pay worker's compensation and unemployment insurance costs. Pay quarterly and annual payroll taxes to the IRS, state and local governments for

employees on the payroll. Pay wages to employees hired to assist the chapter and distribute W-2 forms to

employees and file W-3 forms with the IRS at year-end. Prepare #1099 for all contract employees earning more than $600 per year (gardener, maintenance person, etc.).

Arrange a meeting date with the collegiate chapter president to present the house corporation budget and future plans for chapter housing to chapter members, and also review the work done during the summer break.

Confirm annually with the appropriate state agency that the corporation is in good standing and/or take appropriate steps to maintain standing. Many states require a form listing current house corporation officers to be sent annually with an annual renewal fee to retain corporate good standing. If this is not done, the house corporation could lose its nonprofit status.

Review and update house corporation bylaws every two (2) years.

House Corporation President Responsibilities

Ensure that the board and corporation abide by and conform to the policies and procedures established by the Council of Delta Gamma Fraternity with respect to financing, governing, building and remodeling of chapter house facilities.

Ensure that the board and corporation recognize and abide by any action taken by the Council of Delta Gamma Fraternity with respect to the requested resignation or removal from office of any member of the board of the corporation who does not fulfill properly the requirements of her office, or who fails to comply with the Constitution or requirements of the Council of Delta Gamma Fraternity.

Guide the board in filling any vacancy on the board. If a board member is appointed, she shall serve until the next Annual Meeting at which time a board member will be elected to serve until the expiration of the term of the board member whom she succeeds.

Ensure that the board holds at least four regular meetings plus an Annual Meeting of the membership during each fiscal year for housed groups and two regular meetings plus an Annual Meeting for unhoused groups.

Ensure that the house corporation bylaws are reviewed and updated every two years.

13

Ensure that adequate and correct accounts of the business transactions of the corporation including accounts of its assets, liabilities, receipts, disbursements, gains and losses, if any, and of the special trust funds handled by or in the name of the corporation are kept.

Sign and issue Certificates of Life Membership. Ensure that the collegiate chapter president, collegiate vice president: finance,

collegiate director of house management, the advisory team chairmen and local alumnae president are kept apprised of meetings and, as ex-officio members, cast their votes.

Ensure that all directors elected by the board, off the annual cycle, are presented to the membership at the next Annual Meeting for formal election to the board. Time served prior to this election count as one year toward the director’s term limits.

Ensure that any decision to buy, sell, or otherwise dispose of chapter house facilities or establish a lien thereon, be approved by a majority of the members present at an Annual Meeting of the corporation or at any other meeting of members especially called for that purpose.

Ensure that in matters of policy concerning the affairs of the corporation, the board follows the Constitution of Delta Gamma Fraternity and the Delta Gamma Fraternity policy database.

Execute and ensure that all items listed on the Annual House Corporation Calendar (president and treasurer) are completed in the time frame dictated (including filing the Annual Report).

Meet with collegiate chapter members and new members to review house corporation operation and summer expenditures in the fall, and again in the spring, to present the budget and obtain a "wish list" from chapter.

Preside at all meetings of the corporation and the board. At the direction of the board, sign bonds, mortgages, contracts, notes and leases

after the lease has been reviewed by the Director: Housing Development and approved by the VP: Finance.

Effect an agreement between the corporation and the collegiate chapter governing the use of corporate real property (Annual Agreement).

Call special meetings of the board upon direction of the board or upon written request of 10 members of the corporation.

Ensure that the date and time of the Annual Meeting is sent to each member by a mailing to her last known address at least one month before such meeting, or, ensure that the meeting notice is placed in the ANCHORA to meet this requirement.

Appoint annually, for housed groups, a standing committee to be known as the house committee whose duties shall be to inspect the chapter house, recommend necessary repairs and report to the board. There shall be a collegiate representative appointed to this committee.

Appoint annually a standing committee to be known as the furnishings committee whose duties shall be to have supervision over decorating, furnishings and replacing furnishings. There shall be a collegiate representative appointed to

14

this committee. Appoint annually a nominating committee whose duties shall be to nominate and

present at the Annual Meeting the names of the candidates for directors to be voted upon at that Annual Meeting. There shall be a collegiate representative appointed to this committee.

Ensure that, for groups with employees, the house corporation maintains an employment committee, whose chairman is an elected director of the house corporation board and appointed by the house corporation president. Employment committee membership shall be as follows: committee chairman, the advisory team chairman and one other collegiate member of the house corporation board appointed by collegiate chapter president. The employment committee will hire, train and hold a yearly performance review of the house director. The committee will share recommendations with the house corporation regarding any changes to payroll activity including raises and the addition or deletion of employees prior to the house corporation budget approval. The employment committee will hold a yearly performance review of the house director and share the recommendations with house corporation.

Ensure that incorporation renewal forms and fees are completed and returned promptly to the designated state/province agency.

Perform such other duties as may be required of her, from time to time, by the board.

Perform any and all other functions as may be required of the chief executive officer of a corporation.

Is the house corporation hostess for any Fraternity visitors to the chapter. The chapter will have Collegiate Development Consultants visit on an annual basis and may have other Fraternity visitors for other events such as recruitment, National Panhellenic Conference’s Something of Value, a Delta Gamma lectureship, etc. The house corporation president should assure that the house is in order and arrange a time to meet with the visitor. If possible, arrange a house tour and provide an update on recent and future projects the house corporation has planned or is planning. We are proud of our Delta Gamma homes and want our visitors to be comfortable when visiting.

Ensure that the house corporation roster is updated on e-Ops+ at all times. House Corporation Treasurer Responsibilities

Keep adequate and correct accounts of the business transactions of the corporation including accounts of its assets, liabilities, receipts, disbursements, gains and losses, if any, and all of the special trust funds handled by or in the name of the corporation.*

Present a written statement of the financial condition of the corporation at the Annual Meeting and any other meeting of the members at which directors or trustees are to be elected.

Keep record of all monies, bonds, notes and similar property belonging to the corporation and disburse the same as directed by the board.*

Ensure that proper insurance is in effect against loss of corporation assets in

15

accordance with Fraternity policies or specific instructions.* Collect and record all monies due to the corporation, i.e., chapter obligation, house

corporation fees and facility rent.* File Form 990 with the IRS annually.* File, if applicable, Forms 940 and 941 quarterly with the IRS and distribute Forms

W-2 to employees. File Form W-3 annually.* File, if applicable, required state and local payroll taxes, prepare form 1099 for

contract employees earning $600 or more in one year, i.e., gardener, maintenance, etc.*

Ensure that at the close of each fiscal year, an audit or review of the financial records of the corporation is prepared.*

Acknowledge or attest with the president: bonds, mortgages, contracts and notes executed by the corporation as directed by the board.

Turn all property of the corporation over to successor or the president of the corporation upon expiration of term of office.

Maintain, control and record all other financial matters of the corporation.* Execute all items pertaining to treasurer as listed on the annual House Corporation

Calendar (president and treasurer) in the time frame dictated. Prepare an annual budget. Note the amount of income needed from the chapter

to cover all known expenses of the house corporation: debt retirement payments, all payroll expenses, including wages, payroll taxes and cost of payroll preparation, insurance, taxes, general maintenance, etc. (use budget form as provided by the Fraternity Housing Corporation). Present to board and collegiate chapter.

Send copy of approved budget to Executive Offices for review and approval by the Regional Housing Specialist.

Pay all bills incurred by the corporation in a timely manner.* Deposit all income in a timely manner.* Bill the collegiate chapter as soon as monies are due. Execute Annual Agreement with collegiate chapter. Notify Fraternity Housing Corporation of any invoices which should be billed back

to the chapter for repair of damage beyond normal wear and tear of the facility. The house corporation may not fine the collegiate chapter but may recover actual costs associated with repairing damaging, excessive cleaning or replacement of lost house corporation property.

Meet with new members and reviews house corporation finances. Function under the confines of the approved budget providing for a safe margin of

profit. The annual budget should generate a 10 percent contribution to reserves each year.

*These items are completed by the Fraternity Housing Corporation staff

Committees The house corporation board may be assisted by chairmen and/or committees appointed by the board for special projects such as rebuilding, remodeling or redecorating. Committees may be appointed for a special project or for a specific period of time. All

16

committees shall include both alumnae and collegians.

House Committee

Inspects the chapter house, recommends necessary repairs and reports to the board annually on needs of the chapter and chapter house regarding housing. There shall be a collegiate representative appointed to this committee.

Furnishings Committee

For housed groups, works with the house director on repairs, cleaning and replacement of furniture, and on the redecorating and cleaning of the house during the summer. The house corporation should state clearly in its minutes the goals and objectives of the committee so that both the committee members and the board understand them fully. Collegiate representatives should be included on this committee.

Capital Fundraising Committee

The members of this committee need not live in the college community. Because appeals for funds are normally made by mail, a group of alumnae living in a community distant from the chapter house may perform this function. Note: Only house corporations which have an IRS designation of 501(C)7 may fundraise.

House Corporation Employment Committee

The house corporation president shall appoint as chairman of the employment committee an elected director of the house corporation board and appointed by the house corporation president. Employment committee membership shall be as follows: committee chairman, the advisory team chairman and one other collegiate member of the house corporation board appointed by collegiate chapter president. The employment committee will hire, train and hold a yearly performance review of the house director. The committee will share recommendations with the house corporation regarding any changes to payroll activity including raises and the addition or deletion of employees prior to the house corporation budget approval.

Nominating Committee

Appointed annually by the house corporation president and whose duties shall be to

nominate and present at the Annual Meeting the names of the candidates for directors

to be voted upon at that Annual Meeting. There shall be a collegiate representative

appointed to this committee.

Interior/Architectural Committee

Shall be appointed when redecorating is apparent. It is composed equally of alumnae and collegians. Suggested collegiate representation is as follows: one representative from

17

each class or members elected by the chapter.

The Collegiate Chapter

In most cases the school and the campus Panhellenic make the decision as to the type of housing sororities will have, i.e., houses, suites, lodges, apartments or meeting rooms. Housing should be similar for all groups. Collegiate Chapter Responsibilities

Pay all costs for repair of damages due to carelessness on the part of chapter members or guests.

Pay for all plumbing repairs when actions of chapter members or guests have caused the problem.

Purchase all disposable supplies (paper supplies, trash bags, food, etc) for the use of the chapter.

Pay all utility bills, including the phone bill. Maintain the online agreements signed through GreekBill. Each member who lives

in Delta Gamma housing must sign a room agreement. Chapters should use the current Room Agreement and Secondary Room Agreement (if applicable).

Chapter President and Chapter Vice President: Finance Responsibilities

Participate in house corporation board meetings.

Ensure that the rent is paid promptly when due according to the Annual Agreement.

Send to Fraternity Housing Corporation all house corporation fees promptly after collection and include a list of the names of those pledged or newly initiated and the amount of payment for each. The house corporation should receive the total amount of house corporation fees paid to the chapter.

Pay the entire amount of chapter obligation to the house corporation according to the Annual Agreement signed between the chapter and house corporation.

Remind the chapter members that house corporation funds are always used to benefit chapter life.

Take suggestions from the chapter to the house corporation board meetings pertaining to improvement or maintenance of the housing.

Ensure that all housing agreements are signed on GreekBill by the specified due date in the bylaws and standing rules.

Director of House Management Responsibilities

Formulate and review, with input from the house corporation, the house rules section of the chapter standing rules once a year and reviews with the chapter and

18

informs members of policies. Plan all room assignments. Encourage all officers to live in the chapter house. Holds house meetings on a regular basis or as necessary. The director of house

management acts as chairman at all house meetings. Hold a special meeting with new women who have moved into the house for the

first time, explaining the operation of the house and the rules governing those who live in it.

Discuss house rules with members not living in the house. See that a list of house rules is posted in each room or is in each member's

notebook. Is familiar with university rules and regulations concerning women’s housing. Consult with the chapter operations adviser early in the year and frequently during

the year. Know the university policy regarding the person responsible for enforcing the

university rules and the procedures for handling violations of these rules within the house.

Hold the required fire drills in October, January and April. Attempt to create an atmosphere of courtesy and hospitality within the house

among members as well as toward guests. Is responsible for seeing that overnight guests are provided for, that they are

shown courtesy and consideration, that they meet the house director and president, and that the house rules are explained to them.

Is familiar with the procedures involved in a visit by a Collegiate Development Consultant or other Fraternity officers. Works with the president and vice president: social standards in making arrangements for such visits.

Check all rooms for neatness and order and issues fines accordingly with the bylaws and standing rules.

Meet with the house director on a regular basis or as needed to discuss items needing attention and report back to the house corporation if their assistance is required.

Assist in distributing and collecting keys (including but not limited to fobs, swipe cards, etc.

Joint Responsibilities of the Chapter and Advisory Team

Working together, the collegiate chapter and its advisory team have the following duties: See that house rules are written to facilitate the handling of requests from the

house corporation regarding care, repair and maintenance of the chapter housing. See that monies designated for the house corporation are separated from chapter

funds in the chapter budget. See that Fraternity housing policies are in effect.

Chapter Operations Adviser Responsibilities

Attend monthly advisory team meetings, officer transition, meetings with house

19

director and director of house management and Panhellenic functions concerning housing

Approve standing rules concerning the live-in/live-out policy and additional house rules.

Ensure that a satisfactory division of responsibilities for the care of chapter housing is established and understood by all involved (director of house management, house director, house corporation board and advisory team). These responsibilities are recorded in the Annual Agreement.

Encourage the director of house management to have regular house meetings. Ensure director of house management and house director make appropriate requests for employees' salaries and food.

Ensure that requests for finances are adequate to keep the housing in good repair and attractive condition (beyond the responsibility of the house corporation).

Assist director of house management in serving as a liaison between the chapter and the house director.

Assist director of house management and house corporation with orientation of a new house director. Encourage officers to attend house corporation board meetings as an ex-officio member.

Ensure that the Annual Agreement between the house corporation and the chapter is executed annually.

Encourage director of house management to advise house corporation board of any necessary major alterations or repairs.

Encourage director of house management to advise house director and house corporation board of repair and cleaning needs.

Ensure that room contracts are executed each spring and the housing is filled to capacity.

Assist officers in formulating standing rules for housing facilities and group living conditions.

Ensure the appropriate officers report all violations of house standing rules to the chapter Honor Board.

See that Fraternity visitors are comfortably and graciously housed and fed.

Assist director of house management with inventories taken at the beginning or end of the school year.

Ensure the provisions of the male visitation waiver are incorporated into chapter standing rules.

See that officers inform members who live outside the house of the house rules. These should be included in chapter and new member notebooks

20

Summary of Annual Procedures for All House Corporations

Annual Agreement

Every house corporation must have a written agreement between the chapter and the house corporation describing financial and other responsibilities of both parties. This should be completed in the spring for the coming academic year. The housing situation determines which Annual Agreement form is to be utilized. These forms are provided by the Office of Housing. If circumstances warrant, an Annual Agreement may be amended with the consensus of the collegiate chapter, the house corporation board, the Regional Housing Specialist and ultimate approval by Fraternity Vice President: Finance. The Annual Agreement no longer contains information about a damage deposit as neither house corporations nor chapters may collect deposits of any kind. The actual cost of repairs beyond normal wear and tear can be billed back to the chapter through the Fraternity Housing Corporation Chapter Receivables procedure. Bylaws

Review with house corporation board members. Prepare any amendments for consideration at the Annual Meeting. This should be done once during each convention biennium. Annual Report

Every house corporation must complete the Annual Report on e-Ops+ by September 1 for the last fiscal year.

Budget

Prepare and present the budget for the coming fiscal year to the collegiate chapter in the spring. Note the amount of income needed from the chapter to cover all known expenses of the house corporation, debt retirement, rent to landlord, insurance, taxes, general maintenance, accounting, all payroll expenses including wages, payroll taxes and cost of payroll preparation. All house corporations must maintain a capital reserve fund, the amount of which is calculated by tabulating six months operating income and six months of any principal loan payments. If circumstances warrant, a budget may be amended with the approval of the collegiate chapter, the house corporation board and the Regional Housing Specialist. In the fall, invite the chapter to develop a "wish list" of ideas for the house corporation to consider. Meet with the collegiate chapter in the fall to report expenditures made during the summer. New Member Meeting

A house corporation representative should meet with the new members to discuss the operation of the house corporation. Many times new members wish to give a gift to the house corporation. That gift should be in the form of a cash donation unless authorized

21

by the corporation furnishings committee.

Sample program for a new member meeting for a chapter with housing

We’re here to talk with you about your house corporation. Let me introduce myself and the others here with me. (Make introductions of all house corporation officers present.)

What is a house corporation? It’s a separate corporation formed according to the Delta Gamma Fraternity Constitution to provide the chapter with a suitable social environment. Now, what exactly is a suitable social environment? In our case at ___________chapter, it means that we provide the chapter, not the individual members, with a (house/suite/chapter room/mini warehouse) through an Annual Agreement. It is our responsibility to maintain the facilities. In order to do that, we have a house corporation board, consisting of alumnae members such as myself and (insert other members present and not present) and ex-officio voting members who are the chapter president, vice president: finance and director of house management. The board also includes the advisory team chairman (advisory team chairman) and the alumnae group president as ex-officio voting members as well.

Since this is a corporation, we have shareholders, or members, as we call them. Once you’ve paid your house corporation fee of (insert amount for your group) during this first year of membership, you will become a full member of the house corporation and can attend any meeting of the board (if requested by you to the board in advance) and the entire membership is invited at the Annual Meeting which we hold in (insert month). In order to work with the chapter to be sure our facility is up to date and competitive with other groups on campus, we ask each fall for a wish list from the chapter of things they may need or want for the (house/suite/chapter room/mini warehouse). We do our best to make those things happen within the constraints of the budget and need for others items. Sometimes we have to put off the fun things for more basic chapter housing needs such as (insert new heat/cooling systems or other safety equipment). The chapter’s liability insurance, the insurance coverage for your events, is paid through the house corporation as well. So this, along with the costs of operating the facility (add employees if your house corporation has them) are included in the house corporation budget and billed to the chapter through the Annual Agreement. It is paid by the individual members as resident rent and/or chapter obligation.

Also, we are planning ahead for our___________(insert new house, expansion, remodel,100th anniversary, whatever may be pertinent to your group that the new members should know about). Just know that we have your best interest in mind at all times! Any questions?

22

Sample program for a new member meeting for a chapter with no housing We’re here to talk with you about your house corporation. Let me introduce myself and the others here with me. (Make introductions of all house corporation officers present)

What is a house corporation? It’s a separate corporation formed according to the Delta Gamma Fraternity Constitution to provide the chapter with a suitable social environment. Now, what exactly is a suitable social environment? In our case at ____________chapter, it means that we pay the chapter’s liability insurance so that the social events that you have are covered. We can also help out on occasion with other things that might be social in nature such as provide (insert tent for Bid Day, Founders Day, etc., or whatever your house corporation does for the chapter). In order to do that, we have a house corporation board, consisting of alumnae members such as myself and (insert those members present and not present) and ex-officio voting board members who are the chapter president, vice president: finance and director of house management. The board also includes the advisory team chairman (advisory team chairman) and the alumnae group president as ex-officio voting members.

Since this is a corporation, we have shareholders, or members, as we call them. Once you’ve paid your house corporation fee of (insert amount for your group) during this first year of membership, you will become a full member of the house corporation and can attend any meeting of the board (if requested by your in advance to attend) and the entire membership is invited at the Annual Meeting which we hold in (insert month).

The chapter’s liability insurance, the insurance coverage for your events, is paid through the house corporation as well. So this, along with the costs of operating the facility, are included in the house corporation budget and billed to the chapter through the Annual Agreement. It is paid by the individual members as chapter obligation.

Also, we are planning ahead for our ____________ (insert 100th anniversary, whatever may be pertinent to your group that the new members should know about). Just know that we have your best interest in mind at all times! Any questions?

23

House Corporation Board Meetings

Plan at least four meetings annually for housed groups and two for unhoused groups, with the collegiate president, collegiate vice president: finance, collegiate director of house management, advisory team chairman and local alumnae president in attendance as voting members. Annual House Corporation Meeting

Schedule an Annual House Corporation Meeting, in accordance with the bylaws, for the entire membership of the house corporation on or around the collegiate chapter’s Founders Day. If not possible, the meeting should at least be in the spring semester/quarter of the collegiate chapter’s academic year to enable the entire collegiate chapter membership to attend. Send a notice to the ANCHORA by the appropriate deadline in order to comply with the bylaw requirement to notify all members of the Annual Meeting. Minutes

Upload minutes of house corporation meeting and Annual Meeting minutes to e-Ops+. Regional Housing Specialist

Maintain regular communication with your Regional Housing Specialist. Respond to her requests and connect with her with questions and/or problems of any kind. She is the liaison between the house corporation, the Director: Housing Development, the Director: Housing Resources and the Office of Housing.

24

Annual Meeting The house corporation Annual Meeting should be held on or around the collegiate chapter’s Founders Day. If not possible, the meeting should at least be in the spring semester/quarter of the collegiate chapter’s academic year to enable the entire collegiate chapter membership to attend.

All members must be notified of the Annual Meeting as prescribed in the house corporation bylaws. Notice should be announced in the ANCHORA if at all possible for maximum delivery of the meeting date notice. Deadlines for ANCHORA submissions is October 15 for the winter edition.

All collegians who have paid the total house corporation fee for that chapter may vote at the Annual Meeting.

All collegians or alumnae who have been initiated at a different chapter and who have paid a house corporation fee to the one holding the Annual Meeting may vote at the Annual Meeting.

Elections are held at this meeting for directors of the house corporation A suggested agenda for the house corporation Annual Meeting:

1. Appointment of committee to approve Annual Meeting minutes 2. Reading of the minutes of the previous Annual Meeting and report of committee

attesting to correctness 3. Treasurers report 4. Reading of Annual Reports 5. Unfinished business 6. New business 7. Election of house corporation directors 8. Vote to approve new or revised bylaws, which have been reviewed and approved

by the Regional Housing Specialist 9. Vote to approve sale or placement of a lien against existing chapter facilities or

purchase of new facilities. 10. Adjournment

The bylaws should contain specific instructions or rules governing the Annual Meeting. New or revised bylaws which have been approved by the Regional Housing Specialist are voted on at Annual Meeting.

25

Chapter Housing Year-End Check List As summer approaches, your chapter and house corporation board should begin to make plans to adequately prepare for the summer and next school year. Following is a list of items you will want to consider, but may not include everything you need to do:

Opening date – Establish re-opening date prior to closing.

Room Checkout - Make sure all rooms have been properly cleaned and entirely emptied. A list of damages beyond normal wear and tear should be noted. The actual cost to repair these damages shall be paid by the house corporation and billed back to the chapter, through the Fraternity Housing Corporation chapter receivable procedures. The house corporation may not fine arbitrary amounts for damage.

Walk - through Inspection – Perform an inspection of the entire house to identify repairs needed and missing items.

Collect Keys - Make certain all keys handed out during the year have been accounted for and collected.

Summer House Caretaker – If the house director is not paid/working during the summer, the house corporation board should appoint a summer caretaker who will make certain the house is checked, inside and out, on a weekly basis.

Obtain summer contact information (including addresses, telephone numbers and email addresses) of chapter president, chapter vice president: finance, and chapter director of house management.

Fire Department, Police and Fraternity/Sorority Affairs Notification – Notify these departments whether your house will be open or closed and give them the name of the person to contact in case of emergency (Emergency Contact Person).

Security Services - Notify or schedule as needed.

Payroll and/or Fraternity Housing Corporation – Notify if applicable.

Mail Delivery - Arrange for forwarding of summer mail.

Maintenance Services – Notify as needed.

Newspaper Delivery – Arrange to discontinue and restart.

Food Service – Notify food services as necessary

Utilities – Give vendors name of summer caretaker in case of emergency.

Notify Neighbors - Let the neighbors know if the house will be vacant.

Garbage Pick-up - The number of garbage pick-ups may need to be decreased or halted for the summer.

Secure Windows - All windows should be locked and blinds and draperies left open.

Fire Extinguishers and Safety Systems - Need to be checked to make certain they are in working order.

Lower water heater thermostat.

Secure expensive items, and, if a specific storage closet is unavailable, one room should be designated for locking up all target items for burglars, such as stereos,

26

televisions, gaming consoles, computers, silver, etc.

Store yard furniture.

Yard Maintenance - Make arrangements for grass, shrubs and trees to be watered and maintained.

Remove all perishable food from the refrigerators and shelves.

Tightly seal any open containers of food that can be stored.

Thoroughly clean all appliances, equipment, floors, insides of cupboards and refrigerator(s), etc.

Shut off equipment - Turn off all unneeded equipment and appliances. Unplug everything in individual rooms.

Take out all trash.

Note: No personal property of a member/new member is allowed to remain in the chapter house during the summer break.

27

Reporting Obligations of a House Corporation

Annual Report

Each house corporation is required to file an Annual House Corporation Report with Executive Offices.

Annual Reports must be completed on e-Ops+ by September 1 for the

previous year.

Information from the report is used by Fraternity Housing Corporation to

make reports to Council and the Fraternity. Tax Reports

The Office of Housing staff will file federal, state and local tax reports for all Delta Gamma house corporations.

Federal Tax Reports

Each house corporation, having secured its exemption classification and its employer identification number (EIN), must file IRS Form 990, 990N or 990EZ annually with the IRS.

State and City Tax Reports

In some states, additional state and/or city tax reports must be filed by house corporations. Each house corporation should investigate these responsibilities to see that all such requirements are met each year. Some states and local governments also require that payroll taxes be withheld. Unrelated Business Income

Unrelated business income is all income from non-member sources and is taxable. For most house corporations, the only income from non-member sources would be investment income, i.e., interest from certificates of deposit, savings accounts, etc. Such income generally will not be taxed if it is "set aside" to be used for religious, charitable, scientific, literary or educational purposes. An example for set aside usage would be a gift to the Delta Gamma Foundation to be used for scholarships for collegians (qualifying through their application process) specifically for the chapter that you serve. Another example for set aside usage would be to utilize those monies set aside to pay an additional principal payment on your mortgage (up to the educational percentage of your facility). Because the IRS is showing increased interest in the Unrelated Business Income of tax exempt organizations, all house corporation officers must be knowledgeable about current tax laws. Failure to comply with the law may result in the assessment of back taxes, plus penalty and interest. Not all Delta Gamma house corporations are exempt under the same code section

28

of the Internal Revenue Code. Many come under 501(c)(7) status, while others are classified 501(c)(2) status. The preferred designation is 501(c)7. The Delta Gamma Foundation is a 501(c)3. Features 501(c)7 501(c)2 501(c)3

Independent/

Subsidiary

Independent Subsidiary of an

exempt org

Independent

Hold Title Yes Yes Yes

Purpose Social Hold title only Charitable

Fundraising Yes No Yes

Donations Tax Deductible

No No Yes

May provide food

service

Yes No N/A

Limitations on unrelated business income

35% Yes No

Tax on unrelated Business Income

Yes Yes No

Set-Aside allowed Yes No N/A

Purposes for Set- Aside

Mortgage principal (up to the educational % of the

facility, scholarships, donation to a

501(c)3

N/A N/A

Set- Asides

How Investment Income is "Set Aside" For House Corporations Exempt Under Internal Revenue Code Section 501(C)7

Net investment income exceeding $1,000 may be "set aside" for exempt purposes (religious, charitable, scientific, literary or educational) such as scholarships for collegians or for contributions to the Delta Gamma Foundation. These monies may also be used for the purpose of paying additional principal on a mortgage loan, up to the educational percentage of the facility. The house corporation board "sets aside" this income by means of a resolution. This resolution should be signed and a signed copy should be placed in the house

29

corporation's Minute Book. The resolution must be made on or before the 15th day of the third month following the close of the fiscal year (September 15). The "set aside" procedures as described herein do not apply to and cannot be used by those house corporations which are exempt under the 501(c)2 classification. The amount of investment income "set aside" must be deposited and recorded in a separate fund and utilized properly within three years of being set aside. There should be a schedule of set-asides and expenditures from these funds kept with the financial records of the corporation. Report the "set aside" income to the IRS on Form 990T. The amount "set aside" is entered and deducted from net investment income. A copy of the resolution by the board of directors to "set aside" investment income must be attached to Form 990T. Suggested Set-Aside Resolution (in the corporate minutes)

At a meeting of (name of house corporation), on the day of 20 , after discussion of the net investment income for (name) in the fiscal year ending , 20 , the following motion was duly made, seconded and unanimously resolved as follows: Resolved, that the amount of $ be set aside from the general assets of (name) in a separate fund.

Resolved, further, that said amount of $ be used only for the following purposes:

religious, charitable, scientific, literary or educational purposes, or for the prevention of cruelty to children or animals, in accordance with Section 512(A)(3)(B)(I) of the Internal Revenue Code of 1986.

This procedure must be followed to avoid such taxation every year that the house corporation has a total of over $1,000 of the type of income described above. The funds should be clearly labeled as "set aside funds." "Set aside" money is to be spent only for clearly educational or charitable purposes. If it is spent for a non-qualifying purpose, federal income tax is due on the amount spent at that time. Examples of qualifying purposes include: scholarships to chapter members through the Delta Gamma Foundation, grants to colleges or other educational or charitable organizations. Examples of non-qualifying purposes include: social events, expenses of repairing or maintaining a chapter house.

Insurance The staff at the Office of Housing works with house corporations in all areas of insurance.

Liability insurance coverage purchased under the Fraternity Master Liability Program through MJ Insurance, Inc. is mandatory for all house corporations. It is also mandatory for owned housing to be covered by a property policy that is on a "special forms" basis. We encourage you to consider getting a quote from MJ Insurance, Inc. should your property be covered locally. They have a unique policy geared specifically for women's

30

fraternities and sororities. As they service over 20 of the 26 National Panhellenic Conference groups, they are often able to obtain rates that are lower than local carriers as well as having much more robust customer service with regards to claims and many other resources. For access to their website, go to www.mjsorority.com.

There are a variety of other coverages which may be purchased by house corporations. These are optional and you will find them to be broad and comprehensive in scope, and competitive in price. Liability Insurance Policy

This type of policy covers such occurrences as bodily injury for those claims that occur at your property, or due to the operations of the Fraternity. This insurance must be carried whether a house corporation owns the house in which the members live, has a lodge, has rented quarters or has no quarters. Such liability insurance protects the Fraternity, its members and volunteers from claims resulting from either the Delta Gamma premises or the operations/functions of the Fraternity. All house corporations are covered under the Fraternity Master Liability Insurance Program. Delta Gamma Fraternity carries a $1 million policy with a $15 million additional umbrella.

Crime Insurance Policy

These policies cover the Fraternity and all its related entities including alumnae groups, chapters, house corporations, house corporation employees, the Foundation, Fraternity Housing Corporation, etc. for embezzlements that may occur with their respective funds. This coverage is with Chubb Group Insurance which is administered by MJ Insurance. There is a $10,000 deductible for those clients who utilize a third party for compulsory internal controls. For those without a third party, there is a $100,000 deductible. Since all house corporations utilize the services of the Fraternity Housing Corporation, the internal controls requirement is fulfilled. Property Insurance Policy

This covers the physical properties that the house corporation either owns or is legally obligated to insure, i.e. lease agreements. As mentioned above, house corporations have the option of either insuring their property under the Fraternity Master Property Program or placing their coverage locally. The only exception is if the house corporation has a Fraternity or Fraternity Housing Corporation loan. If so, the house corporation is required to insure its property under the Fraternity Master Property Program. Travelers Insurance Company is the carrier for the Fraternity Master Insurance Program administered through MJ Insurance. Travelers has an A+ (Excellent) rating through the insurance industry. The deductible for house corporations with building coverage is $5,000 per occurrence. For those with content coverage only, the deductible is $1,000 per occurrence. Should coverage be placed locally, it is incumbent upon the house corporation that the

31

coverage be on a comprehensive basis, called "special form," or sometimes referred to as "all risk." Other considerations include:

Business income coverage for rental income should be covered in case the house becomes uninhabitable for a period of time due to a property loss. The amount of insurance is determined by the amount of annual income the house corporation receives from the members of the collegiate chapter.

Personal property or contents need to be insured on the same coverage basis as the building insurance.

Boiler and Electrical Equipment coverage should be considered if you have a pressurized vessel on your property. The peril of steam explosion is excluded under the property form so it needs to be covered elsewhere. Even if you do not have a pressurized vessel, you may want to consider buying this coverage because it also covers mechanical damage which is a “warranty like" coverage. Any type of electrical equipment such as AC units or water heaters may be covered under this arrangement.

Other riders may be needed should you have fine arts type of contents, such as paintings, musical instruments, rugs, silverware or silver sets.

There should be a periodic review of the building and personal property values to ensure that adequate limits are maintained. We encourage all properties to be insured on a replacement cost basis. The personal belongings of members and employees are not covered under the house corporation policy, except for $50,000 renters insurance provided to the house director. The collegians' belongings are generally covered by their parents' homeowner’s policies. The house director should consider a tenant policy to cover her personal liability exposure. If there is a theft where the total loss (could be one member or multiple members) is very high, this extension may also cover the loss up to a specified limit. The Office of Housing can provide you with up to date information on this coverage. If the house corporation has a loan from any Delta Gamma entity, that entity must be named as the Mortgagee on the comprehensive policy, since it is the holder of the note which is secured by the mortgage lien.

Worker's Compensation Insurance Policy

This covers the lost wages and medical expenses of an employee who has been injured on the job. This insurance is mandated by each state. House corporations are responsible for securing this coverage, either locally or through our insurance agent, MJ Insurance, Inc. Travelers Insurance Company is the carrier used by MJ Insurance with an A+ rating.

32

Automobile Insurance

The Fraternity carries automobile coverage for hired autos. Autos your employees,

alumnae and collegians rent on behalf of the Fraternity do not require the purchase of

additional damage coverage from the rental car company, except in Canada. Non-member

volunteers are not protected by this policy. Nor are the autos of employees or members

who own, lease or borrow covered that are used in connection with Fraternity business.

Members and employees must look to their own insurance policy for protection.

Directors and Officers Liability Insurance

The Fraternity carries a blanket liability policy covering all of its entities (collegiate chapters, alumnae groups, house corporations, Foundation. etc.) to protect against wrongful acts by its officers or directors. Such acts include: any actual or alleged error, misstatement, misleading statement or act, omission, neglect or breach of duty by one or more of the individuals insured while acting in their capacity as authorized representatives of the Fraternity. An individual must have paid her per capita dues for this coverage to be in force. Inventory/Appraisal

House corporation records should include an inventory of furnishings, equipment, cost of construction or purchase of the house or lodge (if one is owned), exclusive of the land. The purpose of the inventory is to establish values in case of insurance claims. Photographs of all furnishing should be attached to the inventory sheets; a video is also acceptable. A copy of this information should be maintained offsite and in a secure location. Please note that house corporations should submit an Insurance Profile and/or Appraisal upon request of the Housing and Insurance Office at Executive Offices.

Getting Enough Coverage

Buildings In choosing a limit of coverage for your house, the valuation method to keep in mind is the replacement cost of the structure. This can be substantially different than other methods of valuations, such as:

Market value Mortgage balance Assessed value for taxation Balance sheet value

The insurance you have makes the assumption that you actually plan to replace your house with a structure of the same kind and quality. You should, therefore, consider the costs that would be charged by an average, local contractor to rebuild the house. Ignore all other methods of valuation. Short of soliciting a construction bid from a contractor, the

33

best way to derive an accurate replacement cost is through a formal calculation process. MJ Insurance, Inc. can do this for you, or you can obtain the services of a local appraiser. The exception to this procedure concerns buildings you do not plan to replace if destroyed. We recommend you either do not insure such buildings, or insure them only for the cost to demolish the undamaged remains. Contents You should think of "contents" as anything that is not permanently attached to the house (furniture, dishes and cook-ware, appliances, drapes, etc.). Again, your insurance deals only with replacement cost. The amount that is appropriate for your house can be vastly different from other houses. We suggest that you videotape each room in the house. As you are doing so, open cupboards and closets to reveal the contents within. For any property where size is an important aspect of values, include an object of known size in the picture in order to achieve proper perspective. Sit down and start to tally the replacement cost of the items shown on your tape. This will accomplish two things; you will derive a replacement cost figure for insurance purposes and you will have good documentation should you suffer a loss. Keep the tape (make copies, if possible) someplace other than the chapter house.

Yearly Inspections It is recommended that two yearly property and life safety inspections occur. Loss of Income/Extra Expense The amount of coverage needed to adequately insure these exposures to loss depends on the amount of time needed to repair your house following a major loss. When a loss occurs that renders the house uninhabitable, you will either lose your income stream because members stop paying, or you will incur additional costs to arrange temporary facilities to house the members during the repair period. Most of the time, because of contractual obligations, you will need to find temporary facilities. Calculating your potential "Loss of Income" is easy – simply multiply your monthly income times the number of months you think it would take to repair your house. The calculation for "Extra Expense" losses is less defined. You should think about where you can obtain such housing and what it will cost per month. Most college towns are not exactly teeming with short-term unoccupied living space. You should add to this cost any other expenses that will be necessary to comply with your contractual obligations (food, laundry, transportation, etc.). After approximating your gross cost of providing the alternate facilities and services, you should deduct your normal costs of operating the house. This will give you a net extra expense figure that is the subject of this insurance.

While we hope nothing ever happens to our houses, being prepared to handle any catastrophe is the first step to immediate resolution. In the event of structure or content damage you should follow the steps below to ensure the immediate safety of our women and reduce expenses.

If there is a claim:

Contact MJ Insurance at 1-888-442-7470 immediately. You can ask for Heidi Lewis or

34

Heather Cox. If you have any questions regarding a potential claim, you are welcome to contact Mandy Reymann at the Office of Housing who is the liaison to MJ Insurance. She can be reached at mandyr@deltagamma.org or 614-487-5599.

MJ will open up a file claim

MJ will contact a local adjuster to review the damage at your location.

If a claim results in a significant disruption of chapter operations, please notify your Regional Housing Specialist. She will work with the regional team and housing directors to support the house corporation and chapter until normal operations can resume. Contact vendors to repair damage.

If possible, do not start work until after adjuster sees damage (usually within 24-48 hours), but do take immediate action if needed to ensure the safety of members and prevent additional damage.

The adjuster will work with the appointed house corporation member regarding the loss, coverage, what may be needed and will keep you updated on the claim.

Please call MJ if you have any questions on the process or status of your claim.

House Corporation should contact the Accounts Payable Specialist over their region (APS) at the Office of Housing to provide date of loss and a short description.

All vendor bills and paperwork relating to the claim should be sent to your designated APS at the Office of Housing.

Fraternity Housing Corporation will pay all the vendor bills submitted and track all expenses that are related to the claim. (Please mark all claim materials as “insurance.”)

MJ will notify the Fraternity Housing Corporation when a claim is opened and the APS will start a file.

The APS will work with MJ to ensure paperwork/payment is in order.

The APS will also review the file to ensure all funds have been received and, if not, submit a request to MJ for additional funds. Once completed, the file will be closed.

The APS notifies the house corporation when the funds are received and the claim is closed.

Review of Certificates of Insurance from Third Party Vendors

A prudent risk management practice is the transfer of a risk exposure to another person or entity. Based upon Fraternity guidelines, there will be occasions where you may rent an establishment (i.e., restaurant or hotel) and/or hire someone to perform a service for the house corporation (i.e., painter, landscaper or roofer). When you rent an establishment or engage the services of someone, it is required that you obtain a Certificate of Insurance which represents the coverages that have been purchased for their operations.

35

Upon receiving the Certificate of Insurance, it is important to know what limits and coverages that are acceptable. You are always welcome to call MJ Insurance to discuss the certificate, but it would be beneficial to provide you with a brief reference.

The Certificate of Insurance should show the following information:

o Named Insured or Policyholder (should be the establishment or individual you are hiring)

o Insurance Company o Your chapter or house corporation should be listed as the Certificate Holder.

The Certificate of Insurance should specifically highlight the coverages purchased by the Insured. Your agreement with a vendor will dictate what coverages should be represented on the Certificate of insurance. For example: If you are renting an establishment, you will need to have evidence of General Liability coverage.

If an establishment is providing alcohol related services, you will need to have evidence of Liquor Liability and Workers Compensation coverages.

If you are hiring a contractor, you will need to have evidence of General Liability, Workers Compensation, Automobile Liability and Construction Bond in the full amount of the construction project.

If you are hiring a bus company for group transportation, you will need to have evidence of Automobile Liability coverage.

As a guideline, the following limits of liability are a minimum that you should accept from a third party:

General Liability $1,000,000

Liquor Liability $1,000,000

Automobile Liability $1,000,000

Workers Compensation/Employers Liability $100,000/$500,000/$100,000

If you obtain a Certificate of Insurance that does not include at least the recommended minimum limits, we recommend that you call MJ Insurance to discuss the situation. Again, it is a prudent risk management practice to "transfer" an exposure to another by using their establishment or service. However, if they do not have insurance or insufficient limits of liability, you have not accomplished your goal.

Worker's Compensation Obligations

Employee Versus Independent Contractor

The worker's compensation laws make an employer responsible for medical, indemnity and/or death benefits for subject employees who are injured or killed while performing services for the employer. These laws then serve to relieve employers of liability from common-law suits involving negligence.

All states in the United States require that employers purchase Worker's

36

Compensation insurance. Depending on the state, the insurance can be purchased either through the state fund or the competitive market. In those states under a state fund arrangement, otherwise referred to as monopolistic states (ND, OH, MT & WA), you, as an employer, are obligated to go to the fund to purchase the insurance. In the competitive market states, you as an employer can access this market through an insurance agent/broker.

Determining if the House Corporation is an Employer

This is a challenge to each relationship because there is no "absolute" manner under which this can be determined. There are ways, however, of making a determination, by reviewing the control, or right to control, by either the house corporation or chapter.

To establish an employee-employer relationship, more emphasis will generally be placed upon the employer's right to exercise control (regardless of whether such right is actually exercised), the right to hire and fire, the relationship of the work to the employer's business, or the degree of work performed (i.e., continuous, intermittent, etc.). A litmus test which the State Worker's Compensation Boards, the Courts and the IRS will typically use is the extent to which the person is under the "control" of either the house corporation or the chapter. They will rule the person is an employee if the relationship meets any of the following, tests:

Control - If a worker is required to comply with directions about when, where and how the job is to be done, he/she is usually an employee. (This is the key factor to consider.)

Training - When the owner trains a worker, it indicates that control is being exercised over the means by which results are to be accomplished. Ergo, the worker is an employee.

Services Rendered - If the services must be rendered personally, it suggests that the employer controls both the means and the results of the work.

Continuing Relationship - A continuing relationship between the worker and company is indicative that an employer-employee relationship has been created.

Hours of Work - If set hours of work are established, it suggests control, indicative that an employer-employee relationship exists.

Full-Time Requirement - If the worker is required to devote full-time to the one "client," it strongly indicates that the "client" is exercising control over the worker's time, and thus is his or her employer.

Working On Employer's Premises - Control is indicated if the work is performed on the company's premises.

Order or Sequence of Work is Set - If the worker is not free to choose his or her own pattern of work, but must perform services in the order or sequence set by the company, it is indicative of control by the company.

Right of Discharge - The rights of a company to discharge a worker indicates the worker is an employee.

Right to Terminate - A worker is an employee if he/she has the right to end the

37

relationship with the company at any time he/she wishes without incurring any liability.

Notice that there is no reference to compensation in determining whether an employee- employer relationship exists. This is due to the exchange of money not being a requisite. An exchange of services for room and board would be considered compensation, as would the exchange of monetary compensation. Based on this information, you need to ensure that the house corporation or chapter has satisfied itself that you are either an employer or not. If you determine that you are, you will then need to contact either our insurance agency, MJ Insurance, Inc., or seek local assistance in placing of this coverage.

Construction/Remodeling/Refurbishing/Financing

Before the chapter and the house corporation consider a construction or remodeling project, they should review the approval process listed below:

Major Projects Approval Process

Phase 1: House corporation decides to undertake a major project which will require a loan

and/or fundraising efforts. House corporation notifies the Regional Housing Specialist of

their intention to gather information. The Regional Housing Specialist gives Director:

Housing Development and the Regional Team notification.

Step 1: House corporation gathers feedback from the chapter on how the space will be utilized, what things would enhance their living experience, any preferences on colors etc. A committee of directors and collegians is ideal. Step 2: House corporation begins the process of getting drawings or renderings if applicable and works with an architect or vendor to get estimates on project. Step 3: House corporation contacts fundraising company to determine cost of feasibility study and/or newsletter if applicable.

Approval #1: House corporation sends preliminary plans/ideas/estimates to Building

Commission (see make up on page 2). If Commission thinks the scope and use is

reasonable, then they give approval to move to the next phase. At this time Director:

Housing Development will converse with house corporation regarding fundraising options

and determine what direction to take.

Phase 2: House corporation sends cost estimates of major project plus amount of

anticipated loan to the Fraternity Housing Corporation who works on pro-forma to include

all known expenses related and unrelated to project.

38

Step 1: House corporation should meet with the Chapter Operations Adviser or the

advisory team chairman to discuss chapter increases associated with the project. A

preliminary discussion about state of the chapter is important at this stage before

plans are formalized.

Step 2: If house corporation is anticipating a loan, they will get estimates of interest

rate, length and down payment requirements.

Approval #2: House corporation submits pro-forma created by the Fraternity Housing

Corporation to the Regional Housing Specialist and Director: Housing Development. If the

scope of the project (taking into account current reserves, potential loan, additional costs

associated with professionals such as architect, fundraising company) necessitates a

large increase to the chapter, then the Regional Housing Specialist sends budget to the

Regional Finance Specialist to create similar pro-forma to show impact to live-in/live-out

members. Both the collegiate and house corporation pro-forma budgets are taken into

account when the Building Commission makes a decision regarding moving to the next

phase. Examples would be a) approving plans as submitted, b) going back to house

corporation with more questions based on results of either budget c) asking house

corporation to change scope of project, d) checking with the regional team for any

additional concerns etc. IF the Building Commission approves preliminary plans, THEN

house corporation proceeds.

Phase 3: House corporation sends architectural plans out to bid and gets hard numbers

from contractors. House corporation solicits banks for term sheets on loan. Presents plans

to the entire chapter.

Step 1: House corporation gets two or more bids from licensed contractors and

sends to the Fraternity Housing Corporation to update pro-forma budget. House

corporation takes bids, budget and financials to banks to obtain commitments for

financing. House corporation sends terms to the Fraternity Housing Corporation to

incorporate into final pro-forma which is sent to Chapter Operations

Adviser/Regional Finance Specialist to update collegiate pro-forma budget.

Step 2: House corporation along with Chapter Operations Adviser/advisory team

chairman present costs to chapter and the impact of increases per member.

Chapter takes vote to support the project and records vote in their minutes.

Step 3: Per the by-laws, house corporation takes plans to Annual Meeting and has

a vote of the membership to enter into a loan using the house as collateral. House

corporation records vote in their minutes.

39

Approval #3: All votes/minutes along with term sheet, fundraising results and pro-forma

budgets are submitted to the Regional Housing Specialist/Director: Housing Development.

If they approve, then it will be recommend to Council that house corporation can enter into

loan with bank and sign contract with builder/construction. IF Council approves, THEN

project begins.

Notes: If information comes back at any of the three approval junctures, then project can

be changed, eliminated or tabled until a later date. Council is brought in after first two

phases are complete and before final commitments are made to start project. The

Regional Housing Specialist, Director: Housing Development, Building Commission and

Fraternity Housing Corporation work closely throughout process to ensure that all parties,

especially the collegiate advisors, are included and the cost is transparent to the chapter

members. Contingency plans for things like bank requirements, unanticipated additional

costs and timeline not being met should be part of house corporation documents.

There is a Building Commission that will be involved in major housing projects as defined

by the House Corporation/Major Project policy (see below). This Commission will be made

up of the following members:

Director: Housing Development, Director: Finance, Director: Member Development,

Director Collegiate Development, Director: Alumnae, Housing Program Director,

and the Regional Director of the region for which the project is located.

House Corporation/Major Project

House Corporation/Major Project policy to read: Before a house corporation proceeds with a major project (such as new construction, major renovation or significant changes to the house or property), a financial feasibility study, construction or project plans and financial pro-forma may be required by Major Housing Projects Committee for review with a recommendation to Council for final approval. (January 2016)

Architect

In selecting an architect for a construction project, the house corporation board should interview several licensed, reliable architects.

All Delta Gamma house corporations must engage a licensed architect who should belong to the American Institute of Architects.

The architect should be familiar with group living arrangements, preferably Fraternity/Sorority housing, as well as the plans of the college or university where the chapter is located.

40

The architect must be professionally competent and personally acceptable to and compatible with the house corporation board.

The house corporation board must be particularly careful when considering a Delta Gamma or Delta Gamma relative as an architect. The architect should not be ruled out for this reason, but the board must have the freedom to deal with the architect without repercussion from family members. The decision to hire a Delta Gamma or Delta Gamma relative must be discussed openly with all concerned.

Architects' fees vary from one area to another. The fees may be a percentage of project cost or a set amount. The architect handles bids for construction and advises on the selection of a

construction firm. It is customary for the architect to be employed on a percentage basis to supervise construction. The contractor selected must secure a Performance and Payment Bond.

The board should know exactly what the fee will be for preliminary and finished drawings, specifications and supervision before signing a contract with the architect.

It is difficult for the architect to work with an entire crew or board. Therefore, it is important that one person from the house corporation board be designated as the official spokesman or head of the building committee. All suggestions should be channeled through the spokesman to the architect, who will relay them to the builder, unless other arrangements have been made for board communication with the builder.

Changes in plans should be made in writing before the final working plans are drawn in order to avoid confusion, disagreement and extra charges from the architect.

Interior Decorator/Designer

The house corporation board should interview several interior decorators or designers before making a final decision.

All Delta Gamma house corporations must engage a decorator belonging to the American Society of Interior Designers (ASID), International Interior Designers Association (IIDA) or National Council for Interior Design Qualification (NCIDQ) for building, remodeling and decorating projects. A master plan for decorating should be devised and the same decorator should see the plan through to completion. The chapter houses that appear most attractive to the collegians are those that have had the attention of a single decorator during the implementation of a master decorating plan. When a plan requires several years to complete, this may be impossible.

Decorating changes or additions should be done annually to keep costs constant. All decorations and furnishings must be purchased by the house corporation

to ensure that they coordinate with the master plan. It is necessary to choose furnishings which will wear well despite constant use. Chairs, sofas and other frequently used pieces should be of commercial grade.

41

The decorator should be familiar with fraternity living arrangements and similar commercial fields.

The decorator should be one with whom the board can work and communicate easily.

As with the hiring of an architect, careful consideration should be given to the problems which may arise when a Delta Gamma or Delta Gamma relative is hired.

Color schemes should not be proposed by the house corporation until a decorator is chosen because the decorator will present several choices of colors and furnishings for consideration. More choices should be requested if the first ones are not satisfactory. The crew should never feel that the final selections are the decorator's alone.

The Interior/Architectural Crew shall be composed equally of alumnae and collegians. Suggested collegiate representation is as follows: one representative from each class or members elected by the chapter.

Financing the Project

Based on its current financial status and estimated income, the board should prepare preliminary budgets for construction, remodeling and/or refurbishing of the chapter house.

Local Loans

After the preliminary budget has been prepared, the house corporation applies first to a local bank or savings and loan association for a loan. An established house corporation which has owned a house and shown good financial management should be able to obtain a loan. Local loans are secured by a first mortgage. A certified copy of a resolution authorizing the house corporation officers to secure a loan is usually required by local lending institutions. The resolution should be stated in the minutes of the board meeting at which the action was taken.

The house corporation will provide to the local lender the following:

A copy of the house corporation financial statement for three to five years.

The pro-forma budget showing the ability of the chapter to support the loan.

A construction bid showing total cost of the project.

If required, the financial statement of the collegiate chapter.

Fraternity Loan Application Process

1. Request a loan application from the Regional Housing Specialist for your area. 2. Attach the following:

a. House corporation board of directors vote to pursue loan as shown in meeting minutes.

b. Collegiate chapter vote/minutes.

42

c. Corporate Resolution to Borrow. Resolution should include the following information:

i. Amount of loan ii. Length of loan iii. Date of minutes when vote took place iv. Purpose of loan v. Names, emails and phone numbers of officers vi. Amortization schedule vii. Copy of the deed and title viii. Copy of any outstanding loans

3. Submit all to the Regional Housing Specialist, who will send it to the housing program director who will check the application for completeness and confer with the Fraternity accountant. She will then send it on to Council for a vote and copy the Director: Housing Development.

Fraternity loan packets

Regional Housing Specialist

Housing Programs Director and Fraternity accountant/VP: Finance

Council vote

Fraternity attorney of record finalizes

Money disbursed to the house corporation from the Fraternity

Fraternity Housing Corporation Loan Application Process

1. The house corporation should discuss with the Regional Housing Specialist, the house corporation’s intent to request a loan. With Regional Housing Specialist approval, proceed to below procedure.

2. Attach the following: a. A house corporation board of directors Corporate Resolution to Borrow.

Resolution should include the following information: i. Amount of loan ii. Length of loan iii. Date of minutes when vote took places iv. Purpose of loan v. Names, addresses and phone numbers of officers

b. Collegiate chapter vote 3. Submit all to the Regional Housing Specialist, who will send it to the housing

program director who will check the application for completeness and send on to the Director: Housing Development to request a vote from Fraternity

43

Housing Corporation Board of Directors.

Submit all to the Regional Housing Specialist

Housing programs director checks application for completeness

Director: Housing Development requests vote from Fraternity Housing Corporation

Board of Directors

If approved, the money is disbursed to house corporation from Fraternity Housing

Corporation

Additional Financial Notes

Some college Panhellenics are participating in National Panhellenic Conference

housing agreements, thereby restricting the type of housing a group may occupy.

The goal of a house corporation should be to be debt-free.

House corporations planning extensive redecorating, remodeling or construction of

a new house shall build a reserve.

The chapter house should be run as economically as possible; however,

replacement reserves for future plans must be included in the fees charged to

collegians. In order to ensure this, house corporations should keep the five-year

Capital Budget maintained with both descriptions of upcoming projects as well as

estimated costs. A sound financial basis must be maintained in the event a loan or

down payment is needed. This includes, but is not limited to, long term ability and willingness on behalf of the chapter to pay all increased fees association with a

new loan.

Zoning

The following information regarding local zoning laws must be checked before major renovation or construction is initiated.

Is the property zoned for the kind of project being planned? o Typical zoning for most of Delta Gamma properties is RH-2 or RH-4.

What percentage of lot can be developed? o How large the first floor square footage or "footprint" can be.

Maximum height of structure. Set back requirements. Parking requirements.

The house corporation board can petition to have the property re-zoned to a less

44

restrictive classification. The house corporation board can petition for a variance on one or two of the above restrictions without changing the zoning classification. Upfront Owner Responsibility

Concurrency is the assessment of the impact your development will have on the surrounding area: traffic, storm water drainage, power, water, sewer, etc. Impact Fees are levied by the local municipality to generate money for roads and infrastructure development. The fee must be paid by any new development that generates new traffic. These fees can be waived through a petition for an appeal of the fee. Site Survey and Legal Description

Tree and topographical survey - will not come standard with site survey. Arrangement for soil borings prior to closing on property to determine that the lot is

suitable for building (no sink holes, no toxic waste, etc.).

An assessment of adequate electricity, water, sewer, telephone, street access

(restrictions on curb cuts), etc.

Additional Items to Consider

Financial capacity will be the biggest factor in determining the total square footage of the project. To reduce square footage, consider using a "great room" concept as a substitution for a living room, dining room and chapter room. The square footage of bedrooms can be kept at 120 square foot (minimum). The number of bedrooms should be determined by the resident rent required to make the project financially feasible and the ability of the chapter to fill all resident spaces. The cost of telephone and security systems, smoke detectors and sprinklers, furniture and interior finishes must be included in project estimates. The architect is required to provide the house corporation with a building cost estimate, but the house corporation is ultimately responsible for staying within budget and approving all costs.

45

Space Needs Summary

Space Requirements Total

1. Bedroom/double 20 @ 180 SF EA. 3600 SF

2. House Director (couple) I @ 312 SF 312 SF

3. President's Room I @ 192 SF 192 SF

4. Chapter Office I @ 80 SF 80 SF

5. Bathrooms 2 @ 266 SF EA. 532 SF

6. Study Room 2 @ 140 SF EA. 280 SF

7. Laundry Room I @ 120 SF EA. 120 SF

8. Luggage Storage 2 @ 64 SF EA. 128 SF

9. Reception/Foyer for 40 people 200 SF

10. Cloak Room 80 SF

11. Guest Bathrooms 100 SF

12. Living Room for 20 people 400 SF

13. Day room/TV lounge for 20 people 400 SF

14. Mail room I @ 40 SF 40 SF

15. Dining/Meeting Room for 150 people 1500 SF

16. Kitchen for 40 people 650 SF

17. Miscellaneous Storage 150 SF

18. Janitor's Closet 48 SF

19. Mechanical/Electrical 188 SF

20. Walls + Circulation (5 + 15%) 1800 SF

Total Square Footage 10, 800 SF

Delta Gamma participated in a charette with other National Panhellenic Conference and Interfraternity Council representatives in which a prototype was developed for a house with 40 residents with 100+ members. This summary is intended to serve only as a guide to future planning. Local codes must be considered, as well as many other factors used to determine a final plan.

46

Chapter Budgets Chapter Budget

The chapter budget includes all income anticipated from chapter members and new members. Careful attention must be given to keeping separate those monies which are for chapter use and those which must be paid to the house corporation or to the Fraternity. The chapter income includes:

New member fees: A minimum fee goes directly to Executive Offices. Some chapters charging over the minimum fee use those monies for chapter expenses related to the new program. Initiation fees: A minimum fee goes directly to Executive Offices. Some chapters charging over the minimum fee use those monies for the member’s badge, initiation expenses, etc. Per capita dues: All paid to Executive Offices. House corporation fees: All paid to house corporation. Resident rent: All paid to house corporation. Chapter obligation: All paid to house corporation. Payroll: All paid to house corporation Board: Covers utilities, food, kitchen supplies and miscellaneous house expenses. A portion of this may or may not be paid to the house corporation. Social fees: All remain with the chapter. Chapter dues: All remain with the chapter. The chapter budget must keep chapter monies and house corporation monies separate. Rent and board receipts must be sufficient to cover all expenses of running the chapter house. These include: chapter obligation and resident rent to the house corporation food; utilities and supplies paid by the chapter. The charge for resident rent and board should be comparable with the amount charged for room and board elsewhere on campus. The collegiate chapter budget will not be approved by their Regional Finance Specialist unless all house corporation categories on their budget madvisory team chairmanh the signed Annual Agreement with house corporation. GreekBill

All collegiate chapters are on a financial online billing service known as GreekBill to invoice and track payments from the members. This service is designed to assist the chapter in staying current with its collections in order to provide funds for payment of the chapter’s bills.

47

Chapter Yearly Surplus

Money in the collegiate chapter treasury in excess of a chapter's expenses for the school year is called the chapter yearly surplus. The chapter decides how the surplus is to be used prior to the end of the fiscal year.

Accumulated Surplus

The approval of the Fraternity Vice President: Finance is required to disburse accumulated surplus (surplus accrued over several years and in excess of current fiscal year's surplus). The chapter should keep a 10-20% balance in their account to begin a new school year in accumulated surplus. The chapter may consider a gift to the house corporation of the surplus in excess of the required accumulated surplus amount they are required to maintain. The money could be used for decorating or repairs as requested by the chapter. The house corporation must honor chapter donations with designations on how the money is designated to be spent.

48

House Corporation Budget

The house corporation budget is determined by the expenses associated with owning and maintaining chapter housing and other assets. The current revenue from the chapter each year must be sufficient to cover all fixed expenses of the house corporation for that fiscal year.

Standard Income

Income items from the chapter, listed on the house corporation annual budget include:

Chapter Obligation

Resident Rent

House Corporation Fees

Payroll Reimbursement

Interest income from investments or interest bearing accounts is also included.

Other Income

This income is not listed on the house corporation budget:

Gifts from the collegiate chapter Gifts from the alumnae Gifts from Parents Club Gifts from chapter members and new members Proceeds from a fundraising campaign

Rent (Chapter Obligation and Rent)

Rent from the chapter each year must be sufficient to cover all fixed expenses of the house corporation which include:

Mortgage payments, loan repayments or rent to the university or other landlord

Taxes, both real estate and personal property, in some cases

Accounting and/or legal fees Insurance premiums

Cleaning and routine maintenance, equipment rental/contracts and maintenance contracts

Postage, telephone, supplies, storage, miscellaneous

Grounds upkeep

Convention or seminars Rent is divided into two categories: resident rent and chapter obligation. Resident rent is a stipulated amount, stated in the Annual Agreement, which is paid to the house corporation by chapter members who live in the house. This rent covers the

49

member's room. Chapter obligation is a stipulated amount, stated in the Annual Agreement, which is paid to the house corporation by all chapter members/new members. This rent covers use of the common areas. If a chapter has a lodge, suite, room or no housing, chapter obligation covers all of the operating expenses of the house corporation. Payroll

All payroll expenses including wages, payroll taxes and cost of payroll preparation are paid to the house corporation from the chapter. House Corporation Fees

House corporation fees will be billed to the chapter by the Fraternity Housing Corporation and paid by the chapter vice president: finance.

Assets

Type Description

Current assets Cash and other assets that can reasonably be accepted to be

converted into cash, used up, or sold within one year.

Investment assets Generally are of a long term nature, not used in annual operation.

Examples: stocks, bonds of other organizations, 5-10 year CDs, treasuries.

Fixed assets Property, buildings, and equipment expected to be used by the house

corporation for more than one year.

Intangible assets Strength/Standing of chapter on campus. Strength of

Fraternity/Sorority system on campus

A house corporation should budget for a 10% increase in net assets annually. House corporations with sufficient funds are encouraged to undertake future renovations and major maintenance.

50

Chapters with Residential Housing

House Corporation Income House Corporation Expenses

House Corporation Fees

Rent Chapter Obligation

Operational Expenses

Annual Expenses

Home Furnishings

Home Maintenance

Paid by new members in the first year of membership

Paid by all collegians that live in the Delta Gamma housing facility

Paid by all collegians

Security system Cleaning Mortgage payments or rent Trash disposal Household items valued under $500

Federal, state and local taxes Insurance Convention & seminar Postage & telephone Accounting & legal fees Interest on loan payments General/ home maintenance Grounds upkeep

Furniture Carpet Dishes Appliances Wallpaper Pictures Curtains Computer equipment Wish list items

Major repairs Additions Painting Furnace Air conditioners Windows Plumbing Landscaping Roofs Electrical Reserves for future expenses

Chapters with a Lodge or Suite

House Corporation Income House Corporation Expenses

House Corporation Fees

Chapter Obligation

Annual Expenses Home Furnishings

Home Maintenance

Paid by new members in the first year of membership

Paid by all collegians

Mortgage payments/rent Routine maintenance Cleaning Grounds upkeep Trash disposal Insurance Accounting & legal fees Federal, state and local taxes Interest on loan payments Postage & telephone Convention & seminar

Furniture Carpet Dishes Appliances Wallpaper Pictures Curtains Computer equipment Wish list items

Major repairs Additions Painting Furnace Air conditioners Windows Plumbing Landscaping Roofs Electrical Reserves for future expenses

Chapters with No Facility

House Corporation Income House Corporation Expenses

House Corporation Fees

Chapter Obligation

Annual Expenses Home Furnishings

Home Maintenance

Paid by new members in the first year of membership

Paid by all collegians

Insurance Accounting & legal fees Federal, state and local taxes Interest on loan payments Postage & Telephone Storage rental Equipment rental Convention & seminar Facility rental (for recruitment or retreat)

Computer equipment Wish list items

Reserves for future expenses

51

Risk Management

House Corporation Disaster Guidelines

These are suggested guidelines for house corporations to follow if a disaster hits a chapter house, lodge or suite:

1. Call MJ Insurance or your local insurer as soon as the house corporation is aware of a disaster. Refer to the house corporation's Certificate of Coverage that is sent annually to confirm the amount the house corporation is insured for damage, loss of use and off-premises rental.

2. Ask MJ or your local insurer to send an adjuster right away; call them every day if necessary until an adjuster contacts house corporation.

3. Take necessary steps to ensure that further damage does not occur to the building and its contents while waiting for the repair work to begin.

4. Notify all house corporation board members, your Regional Housing Specialist, advisory team chairman, university officials and Executive Offices.

5. The house corporation will need to secure an estimate for the repair/replacement of the damaged property and work with the insurance company/adjuster to arrive at the final dollar amount.

6. Review the house corporation officer job responsibilities in the house corporation Bylaws and assign specific tasks.

7. Meet with collegians to explain the situation and answer questions. Arrange for alternate housing for the collegians, if necessary, and have two house corporation members sign a rental agreement between the house corporation and the alternate housing facility.

8. Call the City Health/Environmental Inspector and the City Building Inspector to get the house on the inspection list since the new construction cannot begin until everything is sanitized and permits issued for construction.

9. Hold a house corporation meeting and review the bid process to hire a general contractor. The bid process consists of asking three well-known local general contractors to bid the job and securing copies of their insurance certificates to make certain they are covered for $1,000,000 or more liability and for workman's compensation if they plan to do any of the work themselves. The sub-contractors should also be bonded. The bids should contain a description of the estimated work to be done and the cost of that work.

10. Review the three bids at a house corporation meeting and vote to select the general contractor. Have the general contractor draw up a contract which states the total cost (not hourly) of the job and the expected completion date for the work. Have an attorney and your Regional Housing Specialist review the contract before it is dated and signed by two house corporation members.

11. Refer to past house corporation minutes and treasurer's reports to determine how much the structure and furnishings cost when they were new as a point of reference on which to base replacement costs.

12. At a house corporation meeting, select an interior designer who belongs to the

52

American Society of Interior Designers, the International Interior Design

Association or National Council for Interior Design Qualification to help with paint

and wallpaper selection as well as repair and replacement of damaged furnishings.

Refer to Interior Decorator/Designer information in this handbook. 13. Have at least one member of the house corporation board visit the site daily to

make certain the work is being done as contracted and that the necessary inspections are being completed in a timely manner so that the next phase can begin.

14. Keep the chapter informed by visiting, telephoning or emailing once a week to give a progress report. Copy the Regional Housing Specialist, advisory team chairman, Fraternity Housing Corporation and the insurance company on appropriate information.

15. Continue to hold house corporation board meetings with officers and ex-officio members. A chronological log of the repair work should be kept by the secretary or other board member.

53

Crisis Management Emergency Telephone List Please refer to the Delta Gamma Crisis Communication Policy.

The chapter president is in charge and must be contacted about an emergency.

Chapter President Name Telephone Number

Emergency Phone Calls / Contacts to Make:

Name Telephone Number

Campus Security/Police

Town Police/Fire

Advisory Team Chairman

Regional Collegiate Specialist (or Council Appointed Coordinator)

Fraternity/Sorority Adviser

Delta Gamma Executive Offices (in the event of serious injury or death)

614-481-8169

Fraternity President (in the event of death or serious injury)

DO NOT CONTACT PARENTS! Medical or police personnel will accurately inform parents as necessary.

DO NOT ALLOW ACCIDENT VICTIM TO BE DISTURBED BY UNTRAINED PERSONS

In all emergencies:

Instruct all members/new members that only the chapter president should speak for the chapter and only after receiving guidance from the advisory team chairman and/or the Regional Collegiate Specialist/Collegiate Appointed Coordinator

If the chapter president is not available, the next ranking officer available, in order for election, assumes crisis management responsibilities.

If a crisis has occurred within your chapter facility:

Close the facility immediately (reference Collegiate Chapter Officers Manual).

Close the facility to all non-members of Delta Gamma except for emergency personnel.

54

Security System Basic Requirements

Security Systems

Adequate security measures must be in place to ensure the safety of women living in Delta Gamma housing. The following should be considered before installing a security system in a chapter facility:

The location of the key pad(s) – close to the main entrance(s) of the house?

Who is responsible for arming the system each evening? (systems with timers are available)

What hours will the system be armed?

How often will the code be changed?

Will a panic button be available? (when pushed, the panic button automatically contacts 911 or local municipal fire/police)

Will windows be armed and if so, is it desired to allow windows to open partially?

Who will be the security company contact during summer and school breaks? Basic Fire Safety Requirements

Kitchen clean and free from possible sources of grease fires

Fire doors kept closed

Clear hallways

Lighted signs marking exits

Smoke detectors, sprinkler system, fire extinguishers

Posted evacuation plan

Required fire drills

Emergency lighting

55

Safety - Security - Fire Checklist Chapter Click here to enter text. University Click here to enter text. RegionChoose an item.

Type of Housing Choose an item.

If you have a house or lodge:

1. Have you ever made a personal inspection from top to bottom? Choose an item. a. If so, when? Click here to enter text.

2. Has your house been checked by the fire department in the last year? Choose an item. a. If so, when? Click here to enter text.

3. Has your house been checked by the police department for security in the past year? Choose an item.

a. If so, when? Click here to enter text. If you have a house, lodge, suite or other facility in which Delta Gammas are housed

together:

4. Are all doors free from blockage? Choose an item. 5. Are all halls free from blockage? Choose an item. 6. Are all stairwells free from blockage? Choose an item. 7. Are all fire escapes free from blockage? Choose an item. 8. Are the doors into stairways at each floor level kept closed? Choose an item. 9. Do you have fire doors? Choose an item. 10. Are your fire doors operable at all times? (no key deadbolt, double lock, etc.) Choose an item. 11. Are exit signs visible as required by fire codes? Choose an item. 12. Do the exit signs work? Choose an item. 13. Do exit doors, accommodating fifty or more persons, open outward? Choose an item. 14. Do your fire doors remain closed at all times? 15. Indicate which of the following emergency numbers are posted at every telephone:

☐ Fire Department

☐ Local Emergency

☐ Police Department

☐ Ambulance

☐ Campus Security

☐ Doctor or Clinic 16. Do you have fire hoses? Choose an item. 17. Do you have a sprinkler system? Choose an item. 18. Do you have fire extinguisher? Choose an item. 19. Are their locations approved by your fire department? Choose an item. 20. Are they checked as recommended by the manufacturer for proper operations? Choose an item. 21. Do all occupants of the house know how to operate these extinguishers? Choose an item. 22. Are dryer and washer ducts and vents in good repair and free from accumulation of lint? Choose an

item. 23. Are fireplaces designed to be left unattended without presenting a hazard? Choose an item.

56

24. Does the fireplace work properly? If not, please specify problems under comments on last page. Choose an item.

25. Is the damper closed when the fireplace is not in use? Choose an item.

If you have a kitchen:

26. Do you have a kitchen fire extinguisher? Choose an item. 27. Is the kitchen fire extinguisher the proper type for fighting kitchen fires? Choose an item. 28. Do the members of the house staff (kitchen help, food servers, houseboys, etc.) know how to work

the extinguishers? Choose an item. 29. Is the house staff familiar with emergency procedures should a fire occur? Choose an item. 30. Are the motors and cooling coils in refrigeration units clean? Choose an item. 31. Are the kitchen walls free of grease? Choose an item. 32. Are your kitchen stoves, ovens, fryers and all other cooking appliances kept clean and free from

grease? Choose an item. 33. Is your vent-a-hood free of grease and dirt? Choose an item. 34. Is it cleaned on a regular basis? Choose an item.

Electrical:

35. When extension cords are used, are they of a heavy duty quality? Choose an item. 36. Are all extension cords above or beside furniture items, rather than under them (rugs, sofa, chairs,

etc.)? Choose an item. 37. Are all extension cords out of the flow of traffic? Choose an item. 38. Are all cords in satisfactory working order (no delays with on/off switch)? Choose an item. 39. Are all electrical devices in good working order? Choose an item. 40. Are all small electrical appliances (i.e., hair dryers, irons, rollers, electric blankets, hot pots) kept

unplugged when not in use? Choose an item. 41. If you have a house, are all small appliances used in individual rooms approved by the house

corporation? Choose an item. 42. Are you having problems with circuit breaker fuses having to be reset or replaced? Choose an item. 43. If yes, have you called your local house corporation officers about the problem? Choose an item. 44. Has the problem been identified and corrected? Choose an item.

Boiler, Furnace, Water Heater, Cooling System:

45. Is your boiler checked yearly by a plumber or qualified service person (or as required by manufacturer)? Choose an item.

46. Is your cooling system checked yearly by a qualified service person (or as required by manufacturer)? Choose an item.

47. Is your hot water heater set at recommended level for your use (usually 120-140 degrees)? Choose an item.

48. Does your dishwasher have a temperature booster, if required by local Health Department? Choose an item.

49. Is the temperature of the water coming out of the tap the same as the setting on the hot water heater? (check twice a year) Choose an item.

How to check: Run hot water only at tap and measure temperature with a thermometer that reads up

57

to 160°F; a cooking thermometer works well. The temperature of the water should coincide with the setting on the heater. Adjustments should be made to achieve the desired temperature if thermostat indication is incorrect.

Storage:

50. Are motor vehicles, lawn mowers, motorcycles or snowmobiles stored in the building? Choose an item.

51. Are flammable cleaning fluids in approved safety cans in closed metal cabinets or safe storage closets? Choose an item.

52. Are paints and solvents in metal cans in closed metal cabinets away from furnace or hot water tank? Choose an item.

53. Are basements, furnace rooms and attics kept clear of old furniture, homecoming decorations, theme party decorations, paint, solvents, junk, etc.? Choose an item.

Fire Alarm and Drills:

54. Do you have a fire alarm system? Choose an item. 55. Do you check your alarm system once a month? Choose an item. 56. Do you have a smoke detector system? Choose an item. 57. Are your smoke alarms in proper working order? Choose an item. 58. Are they checked on a regular basis, as recommended by the manufacturer? Choose an item. 59. Is the fire drill held at the beginning of each semester or quarter? Choose an item. 60. Is a fire escape plan drawn in chart form posted throughout the facility as required by local fire

codes? Choose an item. 61. Are these plans covered with new members the first day they move in? Choose an item. 62. Is there an assigned place outside the facility for all to meet during a fire drill? Choose an item. 63. Is someone assigned to take roll call after evacuating the building? Choose an item. 64. Have procedures been set up to notify the fire department? Choose an item.

Comments: Click here to enter text.

58

The Americans with Disabilities Act (ADA)

What is it and does it apply to me?

Intent: The Intent of the ADA is to provide persons with disabilities with accommodations and access equal to, or similar to, that available to the general public. It was signed in July 1990, and became effective January 26, 1992. Facts:

It is a civil rights law-not a building code. It consists of four "Titles."

Title I, Employment: You cannot discriminate against a person with a disability in hiring or promotion if the person is otherwise qualified for the job. Employers must provide "reasonable accommodation" to persons with disabilities, including such steps as job restructuring and modification of equipment. At the present time, the law applies to employers of 15 or more. The definition of "disabled" is quite broad. Title II, Public Services and Transportation: Applies to state and local governments. Title III, Public Accommodations: If you are a "Public Accommodation," as defined by the law, you must remove architectural and communications barriers in existing facilities provided it is "readily achievable." In addition, you must provide auxiliary aids and services when they are necessary, provided this does not constitute an "undue burden." A "Commercial Facility" need only provide "reasonable accommodation" to allow disabled employees to enter and use the facility, unless it undertakes alterations or new construction after January 26, 1992. The ADA does not require alterations except for the removal of barriers. Any alterations or new construction after January 26, 1992, of a "Public Accommodation," or a "Commercial Facility," must fully comply with the law's provisions.

Title IV, Telecommunications: Applies to companies offering telephone service to the general public.

Now the big question: Are sorority houses "Public Accommodations" or "Commercial Facilities?" Unfortunately, the law is not clear. The definition of "Public Accommodation" requires categorization of the facility into one or more of 12 descriptions. One of these descriptions is that the facility be a place of lodging (inn, hotel or motel). The definition of a "Commercial Facility" specifically notes that the facility is intended for non- residential use by a private entity. In our favor, of course, is the continued emphasis on the private nature of sorority organizations. This would seem to draw a distinction between sorority houses, used only by members, and motels, etc., that cater to the public-at-large.

Obviously, continued surveillance of the interpretations of this law as they are applied to

59

test cases will be necessary. Legal advice is recommended. For additional information, a very nice summary is available from:

Building Owners and Managers Association International 1201 New York Avenue, N.W., Suite 300 Washington, D.C. 20005 Phone: (202) 408-2662 Fax: (202) 371-0181

It would be prudent, should you be contemplating any construction projects, to integrate review of the law's requirements into your other legal research.

60

Strategies

Fundraising/Chapter/Financing/Major Expansion/New Structure

Fundraising

Belief/Certainty

Advertising/PR Elements

Involvement

Belief/Certainty: Instill a strong belief as to the positive outcome of the campaign: a

feeling of certainty that this is a correct step for the house corporation and the chapter. Every member of the house corporation should be a part of the process. The greater the involvement ... the greater the movement for change ... the greater the energy ... and great energy can accomplish incredible tasks.

Advertising/PR Elements:

Set/outline goal and objective: Click here to enter text. sq. ft. addition, or new front elevation

Determine slogan/acronym/logo "Secure our Ship" (SOS campaign '92) "Open the Door to Our Dream" (Open Door '93)

Make use of vignette or architectural sketch in proposed literature without

requiring architectural construction drawings to appeal not so much to the

technical but to appeal to the emotion of sweet memories.

Sketch of a certain element of the house… front door, portico, etc.

Campaign fundraising events Football weekends or parties, dinners or luncheons

Determine a designated cheerleader for

each of the surrounding metro areas.

Keep track of all gifts and remember to

thank and recognize all contributors.

Handwritten thank you notes! One house corporation fundraiser was a jog/walkathon with pledges per mile. Its success was not in the uniqueness of the idea, but in the handwritten request for donations/pledges and of a follow-up personal thank you note. Personal contact and emotional ties.

Involvement

Involve as many as possible. Expand House Corporation Board Add specialist in the field of: Accounting

Network! Network! Delta Gamma cautions you against using a Delta Gamma as your architect/ designer. Do

61

Financing/Banking Legal Supplier connections Construction savvy PR/Advertising Add collegians (special representative from each pledge class)

not hire any professional who may attempt to dictate what the project should be. If this happens, the agreement should be dissolved. Networking is using your connections to obtain favors/favorable results for the house corporation. Most members will do favors for you (what you request with no strings attached), but ask cautiously until you are sure of the nature of that member.

Involve the chapter! Make certain there is good communication on all aspects of construction and financing and all decisions are agreed upon by an overwhelming majority.

Questionnaires, surveys, forms for suggestions. Monthly or biweekly updates with agenda (15 minute conversation at the beginning of chapter meeting). Make certain to keep time to a minimum and conversation effective.

Target alumnae who might be able to make substantial donations, involve them in the

fundraising campaign as members-at-large to the house corporation. Invite them to Founders Day to speak, invite them to dinner

at the house.

How do you find these target alumnae? First, request a printout from Executive

Offices of all the alumnae of your chapter. Also, request a list of names of missing or lost alumnae for your chapter. They will not

appear on the standard printout.

Talk to all alumnae presidents or alumnae

that members of the house corporation board know personally in all major metro areas of the state, or surrounding states.

Who might be able to make a substantial donation?

Talk to collegians. Who do they know? Who do the parents of the collegians know?

The archives and ANCHORA contain information, notable Delta Gammas.

Take note of the list of alumnae who have donated to the Foundation or Loyalty Fund. This listing does not indicate ability to give, but does indicate a strong belief in Delta Gamma.

Contact three or four of the top fraternities

on campus. Ask if you can look at or make a copy of their donor lists. Cross-reference their lists with your printout from EO.

62

Start and keep a continual conversation with

all alumnae of your chapter (members of your house corporation).

Quarterly newsletters Mailers

Chapter

What else can the chapter do to further assist the expansion campaign?

Build chapter size Increase dues and fees Unify the chapter

Build Chapter Size (The more collegiate members, the less cost per member)

Take quota in Recruitment with a new

member class mostly of freshman and sophomores who will stay in the chapter longer.

It will take a chapter approximately 100 members to afford the budget required to sustain a $500,000 bank note along with other standard annual costs.

Encourage more women to participate in recruitment. Panhellenic quotas are usually determined by the number of women

participating in recruitment divided by the number of National Panhellenic

Conference groups on campus.

Review the house corporation budget to see where all the money goes, and what the cost per individual might become after the building or building expansion.

Petition to increase "total" on your own, or

band together with the Fraternity/Sorority groups to make sure your requests are given

every consideration.

Work on member retention. Watch out for, or enact, programs to assist in limiting the

number of collegians who transfer, or apply and receive alumnae status. Continue open bidding to Total if necessary.

Remember once the expansion is completed or underway, budgetary expenses probably cannot be reduced for 30 years. Income must cover expenses. Therefore, the cost per person will rise if there is a reduction in membership.

Increase Assessment of Dues and Fees

Note the dues and fees required of collegians

to support a house. If there is a great disparity between your current dues and fees and the projected dues and fees, start now to slowly raise chapter obligation, house

corporation fees and rent. Slow enactment of raises will acclimate all to the new cost, let other National Panhellenic Conference groups

on campus keep up with your increases and show the financial institution that greater generating potential for income will not be a problem.

Current standard rates for house corporation with houses:

House Corporation Fee - $150 Chapter Obligation - $5-20/mo. variance Resident Rent - $150-200/mo. average Gift/Chapter surplus - $10,000 budgeted average

63

If the chapter members believe strongly in

the expansion, desire it and are fundamentally involved in the expansion, as well as understanding all costs involved,

they will vote to contribute their own portion.

To generate a substantial increase in income, add more collegiate renters to

already existing conditions to generate more resident rent.

Sleep three (3) to a room which housed two (2).

Unify the Chapter

The collegians need to act as a cohesive

whole, unified toward a certain goal. If the

collegians are unified toward their goals,

they will make unique and strategic sacrifices

for the good of the chapter.

64

Fundraising Refer to the Delta Gamma Housing Guide to Renovations

Fundraising Guidelines for Non-Member Income

House corporations exempt under IRS Code 501(c)7 may engage in fundraising for charitable purposes, either singly or as part of a larger group if two criteria are met:

1. Funds realized are used or set aside for charitable purposes. 2. The proceeds from the fundraiser plus all other non-member income, such as

dividends and interest, do not exceed 35 percent of the total gross receipts of the corporation.

Examples:

a) A house corporation sponsors a fashion show once each year and donates all of the proceeds to charity. The proceeds plus all other non-member income of the corporation may not exceed 35 percent of the total gross receipts of the corporation.

b) A house corporation sponsors a candy sale as a fundraiser. It intends to keep the proceeds for its own use or intends to give the money to a chapter for recruitment expenses. Such proceeds plus all other non-member income (except dividends, interest and the like) cannot exceed 15 percent of the total gross receipts of the house corporation. If a house corporation engages in fundraising and intends to retain the proceeds for its own use or intends to donate the money to a chapter, it normally must pay unrelated Business Income Tax (Form 990T) on such proceeds. Such proceeds plus all other non-member income (except dividends, interest and other passive income) cannot exceed 15 percent of the total gross receipts of the house corporation.

c) If a house corporation plans to engage in what is a very unusual or "non- traditional" activity for profit, such as running a boutique, caddying at a golf tournament or working election polls, whether or not for charity, problems may arise. House corporations engaging in any "non-traditional" activity should contact their Regional Housing Specialist before proceeding. She will help determine whether the activity should go forward and will assist in the planning that is essential for the protection of the house corporation and the international Fraternity.

Those house corporations that have large amounts of money in savings and investments (i.e., $50,000 and over) or realize a substantial amount of income on investments (i.e., $1,000) should notify Executive Offices of the situation. They may want to establish a Set-Aside Fund, which is available to protect such income from taxation. Also, as noted above, such income is counted within the 35 percent whether or not it is used for charitable purposes. Set-Aside funds must, however, be kept in a completely different fund and utilized as per the IRS regulations within three years of setting them aside.

65

Fraternity Housing Corporation What is the Fraternity Housing Corporation (Fraternity Housing Corporation)?

The Delta Gamma Fraternity Housing Corporation is an arm of the Fraternity, formed to assist local house corporations in financial management and adherence to local and federal regulations. Who administers it?

Delta Gamma Fraternity is the sole voting member of Fraternity Housing Corporation. The duties of the Corporation are carried out through a Board of Directors which includes the Fraternity President, Fraternity Vice President: Finance, Director: Housing Development, Director: Housing Resources and one to two members at large appointed by Council. The Director: Housing Development, who serves as the Chairman of the Board of Directors, executes the business of the Corporation. The Benefits

1. Fraternity Housing Corporation does all the financial management for the Delta Gamma house corporations. It writes all checks, assists with all tax forms, collects rent, house corporation fees, and chapter obligation from the collegiate chapter, relieves the participant of providing for audits, prepares the Annual Report and sends a monthly financial statement to the president and treasurer detailing the participant's income and expenses for that month.

2. Budget items such as payroll, loan obligations, taxes, insurance and general maintenance will be a part of the ongoing record of each Fraternity Housing Corporation participant. The house corporation identifies its needs for major changes and repairs and makes its own projections on meeting those needs. Fraternity Housing Corporation will offer assistance in this area.

3. In addition, when a budget is submitted to Fraternity Housing Corporation, the monthly report will reflect the progress in meeting it.

4. When there is need to refurbish the existing house, lodge, suite, room or build a new house, the house corporation may apply for financing through Fraternity Housing Corporation.

Facts about the Fraternity Housing Corporation

Created to provide timely and cost-effective financial services.

A fee for-services program to meet your exact needs.

Suitable for all Delta Gamma house corporations.

Fraternity Housing Corporation is geared to strengthen the house corporation’s

financial base.

Lessens the burdens on local volunteers.

Keeps your corporation IRS compliant.

66

Fraternity Housing Corporation will…

Provide monthly financial reports to your house corporation.

Act as a liaison with the insurance company for questions, claims and effective risk management.

Provide you with volunteer and staff consultants.

Assist with budget planning and sound financial management.

Make your house corporation duties less complicated.

67

Classification of House Corporations by the Internal Revenue Service All corporations established as nonprofit corporations are required to seek a tax classification of the corporation from the United States Internal Revenue Service (IRS). Canadian house corporations have similar requirements from their internal revenue agency. New house corporations must be incorporated in the state where the chapter is located and obtain an Employment Identification Number (EIN) prior to filing for an IRS tax status. The recommended status for a house corporation is 501(c)7, which is designated a social club. The following are advantages of a 501(c)7 status:

Set-asides - Only house corporations with a 501(c)7 designation may set aside net investment income exceeding $1,000 for tax exempt purposes (religious, charitable, scientific, literary or educational) - such as scholarships for collegians, contributions to the Delta Gamma Foundation or improvements to education areas of the house. The set aside funds can also be used to pay principal on a loan up to the educational percentage of the facility.

Fundraising - House corporations with a 501(c)7 status may fundraise. Without that designation, fundraising must be done in the name of the collegiate chapter with all money funneling through the chapter account. Collegiate chapters fall under the Fraternity's 501(c)7 umbrella.

A 501(c)2 organization is considered a title holding corporation and as such must disperse all income received minus expenses to maintain the property. The one exception to this is that part of the income may be used to retire indebtedness.

How to apply for a 501(c) tax status

The process is the same for a new house corporation or an existing house corporation wanting to change to a 501(c)7. If you are an existing house corporation and do not have a letter in your files stating your present tax designation, you can contact the regional IRS office and request a copy of the tax letter. Simply tell them the original letter has been lost. Do not assume that because the Annual Reports and tax forms in your files list the house corporation as a 501(c)7, that this is correct; it may not be. Because form 1024 is so long, hiring an attorney to do it can be very expensive. The following information should help you fill out the form with the help of your Regional Housing Specialist:

First contact the IRS at 1-800-829-3676 and ask for publication 557, form 8718 and form 1024 "Application of Recognition of Exemption” Under Section 501(c) or find it online at www.irs.gov.

The items that must accompany the form 1024 are: 1. Form 8718 with a check for the user fee 2. Copy of certificate of incorporation from the state 3. Copy of the articles of incorporation 4. Copy of the house corporation bylaws which must state from Article II

68

Purpose: ".....the objective, first and foremost, of establishing and providing a suitable social environment for its collegiate chapter..."

5. Copies of financial statements - The type of financial statement will depend on who keeps the books. If the house corporation is a Fraternity Housing Corporation client, the Fraternity Housing Corporation revenue and expense sheets and balance sheets can be used. If the house corporation has an accountant, those statements can be used. Otherwise, the house corporation treasurer will need to provide the financial information.

The Fraternity Housing Corporation can complete this form for your house corporation for a minimal charge. Both procedural forms may be found on www.deltagamma.org in the house corporation forms section.

Note: It may be several months before you receive a letter from the IRS confirming your status.

Suggestions on How to Fill Out Form 1024

Here are some ideas on how to answer the more extensive portions of the form. Your Regional Housing Specialist can assist you with any questions you may have about the appropriate answers. The yes and no answers are self-explanatory. (The form may change slightly from time to time so the page numbers and part numbers which follow may not exactly madvisory team chairmanh the newest form.) Part II. Pages 2, 3, and 4 - Activities and Operational Information 1. Q. Provide a detailed narrative description of all the activities of the organization - past,

present, and planned. Do not merely refer to or repeat the language in the organizational document. List each activity separately in the order of importance based on the relative time and other resources devoted to the activity. Each description should include, as a minimum, the following: (a) a detailed description of the activity including its purpose and how each activity furthers your exempt purpose; (b) when the activity was or will be initiated, and (c) where and by whom the activity will be conducted.

a. (House corporation name) house corporation of Delta Gamma was formed for the purpose of providing facilities for social (and residential if applicable) use of the members of the corporation, which include the college student members of (chapter name) Chapter of Delta Gamma Fraternity, who attend (name of school) and Delta Gamma alumnae.

Since its incorporation in (date), the college student members of the corporation have been meeting weekly (name of location) leased or owned by the corporation. Members meet to socialize informally, study together, plan both organized meetings and impromptu social activities and generally to maintain friendship, familiarity and good will among themselves. Other gatherings, such as a coffee for parents of members during Parents Weekend, (list

69

activities) have been held there. If there is housing with live-in members, there will need to be a paragraph about maintaining the housing such as: The house corporation is also responsible for maintaining a safe, healthy environment for the women residing in the housing facility leased or owned by the house corporation. The house corporation is responsible for overseeing any employees required such as a house director and cook. The house corporation also hosts the Annual Meeting of the corporation membership as well as the quarterly meetings of the board of directors. 2. Q. List the organization's present and future sources of financial support, beginning

with the largest source first. A. Support for the corporation is derived primarily from members. The income of the corporation consists of membership fees and assessments, rent from the collegiate members and contributions from members. All initiated members of the collegiate chapter are members of this corporation.

3. Q. Give the following information about the organization's governing body.

a. Q. Names, address and titles of officers, directors, trustees. A. List house corporation officers.

b. Q. Names, address and titles of officers, directors, trustees. A. List house corporation officers.

c. Q. Annual compensation. A. None

4. Q. If the organization is the outgrowth or continuation of any form of predecessor, state the name of each predecessor, the period during which it was in existence, and the reasons for its termination. Submit copies of all papers by which any transfer of assets was affected.

A. N/A

5. Q. If the applicant organization is now, or plans to be, connected in any way with any other organization, describe the other organization and explain the relationship (e.g., financial support on a continuing basis; shared facilities or employees; same officers, directors, or trustees).

A. We are an independent (list state) corporation whose sole activity is to maintain housing for the social, recreational, and residential (if applicable) use of members of (chapter name) Chapter of Delta Gamma Fraternity, a national sorority.

6. Q. If the organization has capital stock issued and outstanding.

A. No capital stock exists.

7. Q. State the qualifications necessary for membership in the organization; the classes of membership (with the number of members in each class); and the voting rights and privileges received If any group or class of persons is required to join, describe the requirement and explain the relationship between those members and members who

70

join voluntarily. Submit copies of any membership solicitation material. Attach sample copies of all types of membership certificates used. Any woman who has been initiated into Delta Gamma Fraternity and who has paid the designated fee to (name of house corporation) house corporation becomes a life member with voting rights at all annual and special meetings of the corporation. The classification and number of members are as follows:

i. Class A. Any alumna who was a member of the corporation prior to the adoption of these articles (Bylaws). Presently, there are (number of members) members in Class A.

ii. Class B. Every member of (chapter name) Chapter of Delta Gamma Fraternity who has paid the corporation fee in the amount (fee amount).Those collegiate members of Delta Gamma Fraternity who affiliated with this chapter upon payment of a fee of (fee amount) to this corporation. Presently, there are (number of members) members in Class B.

iii. Class C. Any alumnae member of Delta Gamma Fraternity, living in the vicinity of the collegiate chapter, who has paid the minimum corporation fee of (fee amount) shall become a life member of this corporation. Presently, there are (number of members) members in Class C.

Every member is issued a membership certificate, Every member of (chapter name) Chapter of Delta Gamma Fraternity is required to become a Class B member in order to meet the requirements of membership in the Fraternity. This requirement is placed on the collegiate members in order to provide the chapter with a meeting place for their activities. Alumnae are not required to be either Class A or Class C members.

8. Q. Explain how your organization's assets will be distributed on dissolution.

A. Upon dissolution, the assets of this corporation shall be transferred to the Delta Gamma Fraternity, an Ohio corporation. This is set forth in the corporation's Articles of Incorporation and the Bylaws attached hereto as Attachment (name or number of attachment) and Attachment (name or number of attachment).

9. Q. Does the organization now lease, or does it plan to lease, any property? If "Yes", explain in detail. Include the amount of rent, a description of the property, and any relationship between the applicant organization and the other party. Also, attach a copy of any rental or lease agreement.

A. Fill in if you lease and attach copy of the lease.

How to Help Protect a House Corporation with a 501(c)2 Designation from

Audit The income retained for expenses must be designated for specific property improvements. For example: if the house corporation retains $60,000 of income, the books should indicate that $35,000 is for a new roof, $15,000 for a new furnace, and $10,000 for new furniture. The house corporation may not provide food service. If your tax designation is 501(c)10 or

71

501(c)3, contact a local tax expert.

House Corporation Dissolution Procedures

Article XX of the Delta Gamma Constitution states that in the event that a collegiate chapter would be withdrawn from a college campus resulting in the dissolution of the house corporation serving that chapter, the net assets of the corporation are transferred to Delta Gamma Fraternity. Delta Gamma Fraternity will return these net assets in cash without interest to a new house corporation serving this same chapter if that chapter is reactivated on the same campus within ten years after the collegiate chapter charter was relinquished (Date in which Council votes to accept the collegiate chapter’s charter). In order for a house corporation’s bylaws to be approved, the bylaws must contain a dissolution clause stating that the net assets will be transferred to the Fraternity. In the unfortunate event that the need arises to dissolve a house corporation, the following steps should be taken by the board:

Vote to dissolve. The vote must be recorded in the house corporation minutes and

should coincide with the charter withdrawal of the collegiate chapter. Set objectives for liquidation of property. This is important to ensure decisions with

regard to property are made in a consistent manner. Establish a plan and a timeline for liquidation of property that is cognizant of the

chapter’s closing ceremony. Dispose of personal property through sale, gift or loan. Receipts must be obtained

for all distributions. Liquidate real property by sale in as timely a fashion as can be arranged. Notify

everyone with whom the corporation does business (utilities, attorneys, service companies, banks, merchants, university/college, state, local and federal tax authorities) of the corporate dissolution.

Notify everyone with whom the corporation does business (utilities, attorneys, service companies, banks, etc.)

Send all corporate records to Executive Offices. The house corporation treasurer will receive a letter from the Vice President:

Finance listing any other items to be sent to Executive Offices.

Each chapter/house corporation has an appointed Trustee. Council appoints the Trustee shortly after the vote to relinquish/dissolve a chapter charter. The Trustee monitors the campus environment and regularly reports to Council regarding a possible return to campus.

Please keep in contact with your Regional Housing Specialist. She can answer any questions that you might have and is happy to offer her services.

72

Wording of Dissolution Vote

WHEREAS, the charter of <<Chapter>> of Delta Gamma Fraternity has been relinquished to [withdrawn by] Delta Gamma Fraternity, THEREFORE, in accordance with Article XII of the <<Chapter>> House Corporation bylaws, and with Article XX, Section 4 of the Delta Gamma Fraternity Constitution, IT IS HEREBY RESOLVED AS FOLLOWS: THAT, the <<Chapter>> House Corporation shall be dissolved, and its trustees, directors and officers are instructed to cause such dissolution to legally occur as soon as possible after the date of this resolution; THAT, in conjunction with such dissolution, the physical property of <<Chapter>> House Corporation shall be liquidated, and all of the net assets of <<Chapter>> House Corporation should be transferred to Delta Gamma Fraternity; THAT, such transfer of the net assets of <<Chapter>> House Corporation to Delta Gamma Fraternity is made with the understanding that Delta Gamma Fraternity shall hold such assets for a period of ten (10) years beginning the date of the collegiate chapter charter withdrawal by the vote of the Council of Delta Gamma Fraternity. If <<Chapter>> is reactivated on <<Chapter>> Delta Gamma Fraternity will return these net assets in cash without interest to a new <<Chapter>> house corporation, serving <<Chapter>> collegiate chapter <<Chapter>>; AND THAT, if <<Chapter>> is not reactivated on <<Chapter>> during such ten (10) year period, upon expiration of such ten (10) year period the net assets of <<Chapter>> House Corporation shall be transferred to and become the property of Delta Gamma Fraternity, to use for its general purposes.

73

Appendix All house corporation forms can be found on the Delta Gamma website at:

http://www.deltagamma.org

House Corporation Calendar for President and Treasurer

FALL

All house corporation board members pay per capita dues to Executive Offices and to local alumnae group, if one exists. All House Corporations

Annual Report: for previous fiscal year due to Executive Offices on or before September 1.

Attend a chapter meeting to update the chapter on house corporation budget and financial situation and to discuss a 5-year plan.

Attend a new member meeting to acquaint new members with the role of house corporation.

Annual Meeting: set date and notify ANCHORA editor.

Pay insurance premium upon receipt of bill from Executive Offices. WINTER All House Corporations

Submit Capital Budget by December 1. Ask chapter officers for wish list items prior to preparation of capital budget. Review bylaws, revise if necessary and forward to your Regional Housing

Specialist for review. If she gives her approval of the revisions, vote on the revisions at an Annual Meeting. Minutes must reflect the vote.

Send copy of the minutes to your Regional Housing Specialist and upload to e-Ops+.

SPRING All House Corporations

Hold Annual Meeting and elect house corporation board of directors. Confirm corporation is in good standing with the state/province.

Budget: Review proposed budget and amend as necessary. Vote on the completed budget and send copy to your Regional Housing Specialist before March 1 for her approval.

Sign Annual Agreement on e-Ops+

Send roster of house corporation board officers and ex-officio members that includes addresses, telephone numbers and e-mail addresses to the collegiate chapter, your Regional Housing Specialist and Executive Offices.

74

Make plans for summer decorating, maintenance, repair and cleaning.

Provide Certificates of Life Membership for members of the collegiate chapter upon final payment of the house corporation fee.

SUMMER

Complete cleaning, redecorating, remodeling, purchasing of supplies, equipment and furnishings.

Conduct Summer Inventory: Copy for safety deposit box, house corporation files and Executive Offices.

ALL YEAR All House Corporations

Send Minutes of house corporation board meetings to your Regional Housing Specialist and Executive Offices.

Review Handbook for Delta Gamma House Corporations.

Send to both your Regional Housing Specialist and Executive Offices: 1. Copy of university lease (if applicable) 2. Copy of any new legal documents 3. Copy of any communication to/from the IRS 4. Copy of IRS status letter 5. Proof that incorporation is current and in good standing.

Send to Executive Offices only: Appraisal of property and contents.

75

Maintenance Checklist for House Corporations

Date List Reviewed: MM/DD/YYY

Person Reviewing: First and Last Name

Phone Number: Cell, Home, Work

This checklist should be performed at least once per year. Try to include the house director and/or the director of house management in the performance of this checklist. Once completed, this should be presented at the next house corporation board meeting and a plan should be put into place to complete the repair of the items identified.

Exterior: Good Average Needs Repair

Comments

1. Parking area/Driveway G A NR Comments here to enter text.

2. Sidewalk G A NR Comments here to enter text.

3. Porch/Stoop/Other G A NR Comments here to enter text.

4. Front/Back/Side Door G A NR Comments here to enter text.

5. Siding/Building exterior G A NR Comments here to enter text.

6. Roof/Gutters/Others G A NR Comments here to enter text.

7. Grass/Flower beds/Other G A NR Comments here to enter text.

8. Exterior lighting G A NR Comments here to enter text.

9. Windows G A NR Comments here to enter text.

10. Other exterior items G A NR Comments here to enter text.

Interior - Kitchen:

1. Kitchen major appliances G A NR Comments here to enter text.

2. Kitchen plumbing G A NR Comments here to enter text.

3. Kitchen lighting G A NR Comments here to enter text.

4. Kitchen flooring/Ceiling G A NR Comments here to enter text.

5. Kitchen storage G A NR Comments here to enter text.

6. Other kitchen

Other

G A NR Comments here to enter text.

76

Interior - Baths:

1. Toilets/Stalls/Dividers G A NR Comments here to enter text.

2. Sinks/Lavatories G A NR Comments here to enter text.

3. Mirrors G A NR Comments here to enter text.

4. Showers/Tubs G A NR Comments here to enter text.

5. Walls/Floor/Ceiling G A NR Comments here to enter text.

6. Other bathroom

Other

G A NR Comments here to enter text.

Interior - Electrical:

1. Lighting G A NR Comments here to enter text.

2. Telephone system G A NR Comments here to enter text.

3. Security system G A NR Comments here to enter text.

4. Locking system G A NR Comments here to enter text.

5. General appliances-

Washer/Dryer

G A NR Comments here to enter text.

6. Other electrical

Other

G A NR Comments here to enter text.

Interior - Comfort:

1. Air Conditioning G A NR Comments here to enter text.

2. Heating System G A NR Comments here to enter text.

3. Water Tank G A NR Comments here to enter text.

4. Humidifier/Dehumidifier G A NR Comments here to enter text.

5. Other Electrical

Other

G A NR Comments here to enter text.

House Director’s Residence

1. Floor/Ceiling/Walls G A NR Comments here to enter text.

2. Bathroom area G A NR Comments here to enter text.

3. Kitchen area G A NR Comments here to enter text.

4. Other

Other

G A NR Comments here to enter text.

77

Other Areas to Review

1. Basement Floor/Ceiling/Walls

G A NR Comments here to enter text.

2. Storage areas G A NR Comments here to enter text.

3. Guest room(s) G A NR Comments here to enter text.

4. Miscellaneous space G A NR Comments here to enter text.

5. Annex property

G A NR Comments here to enter text.

6. Other

Other

G A NR Comments here to enter text.

7. Other

Other

G A NR Comments here to enter text.

Attach a listing of specific items that need to be repaired to this checklist. If you have an area or item that is not listed on this checklist, write it on the back of this form and include it in your review. THIS MAINTENANCE CHECKLIST WAS PRESENTED TO

Name of House Corporation house corporation BOARegional Director ON MM/DD/YYYY. BY: Signature of House Corporation Officer

Model Bylaws or Code of Regulations

For Delta Gamma House Corporations

(Housed Groups)

This model should be adopted by your house corporation. A local attorney may be consulted if there are specific

requirements governed by the laws of your state. If it is necessary to make changes, prior approval of your

Regional Housing Specialist must be obtained.

ARTICLE I. NAME

The name of this corporation shall be (Greek chapter letters) House Corporation of Delta Gamma

Fraternity.

ARTICLE II. PURPOSE

This corporation is chartered by the State or Province of , not for profit, and with the objective, first

and foremost, of establishing and providing a suitable social environment for its collegiate chapter of Delta Gamma

Fraternity, by, but not limited to, owning, equipping maintaining, and managing a chapter house (facility

or accommodations) for pleasure, recreation, and other non profitable purposes including the social gathering

and enrichment of its members and the collegiate chapter of Delta Gamma Fraternity. The purpose of these bylaws

is to specify the methods of operation by which the objectives of the charter may be attained, and to provide for

the disposition of the assets of the corporation in the event this corporation dissolves or the charter of this

collegiate chapter is relinquished or is withdrawn by Delta Gamma Fraternity.

ARTICLE III. MEMBERSHIP

Membership shall be classified as follows:

Class A. Any alumna who was a member of the corporation prior to the adoption of these articles.

Class B. Every member of chapter of Delta Gamma Fraternity who has paid the Corporation Fee

in the amount stated in the current Annual Agreement. Upon payment of the amount and initiation into

this chapter of Delta Gamma, a Certificate of Life Membership into this corporation will be issued.

Those collegiate members of Delta Gamma Fraternity who affiliate with this chapter may become life

members of this corporation upon payment of a fee of to this corporation. (suggested fee of

$5.00)

Class C. Any alumna member of Delta Gamma Fraternity, who has paid the minimum Corporation Fee

of , shall become a life member of this corporation. (suggested fee of $5.00)

ARTICLE IV. VOTING PRIVILEGES

All members of the corporation are qualified to vote on certain matters pertaining to the business of the

corporation, specifically the election of directors, and any decision to buy, sell or otherwise dispose of chapter

house facilities or establish a lien thereon. These votes take place at the annual meeting of the membership.

ARTICLE V. DIRECTORS

Section 1. The property and business of the corporation shall be managed, and controlled by, and power and

authority vested in, a house corporation board. The board shall consist of not less than three (3),

nor more than eleven (11), elected directors of the corporation and the ex-officio members set forth

in Article V., Section 6. The directors shall hold office for a term of two (2) years, with the terms

staggered. No director shall serve for more than three (3) consecutive full terms without one

intervening term. Directors and officers must be members of the corporation and must be in good

standing with the Fraternity to hold office. Good standing is defined as having paid alumnae per

capita dues to the Fraternity, not currently being on probation and not being expelled from

membership in Delta Gamma Fraternity.

Section 2. Any director of the corporation may be removed by the unanimous vote of the other members of

the board or by two-thirds of those members of the corporation who are present at a special

meeting called for this purpose.

The board and the corporation shall abide by, and conform to, the policies established from time to

time by the Council of Delta Gamma Fraternity with respect to the financing, governing, building

and remodeling of chapter house facilities, and shall recognize and abide by any action taken by

the Council of Delta Gamma Fraternity with respect to the requested resignation or removal from

office of any member of the board or officer of this corporation who does not fulfill properly the

requirements of her office or who fails or refuses to comply with the policies or requirements of

the Council of Delta Gamma Fraternity. Should Council’s policies conflict with other corporation

rules or policies, Council’s policy will control. This section shall not be altered, modified or

rescinded without the prior, written permission of the Council of Delta Gamma Fraternity.

Section 3. The board shall have the power to fill any director vacancy on the board, subject to Council’s

approval if the vacancy was created by Council’s action. The director so appointed shall serve until

the next annual meeting, at which time a director will be elected to serve until the expiration of the

term of the director whom she succeeds. In the case that the board has no directors, the Regional

Housing Specialist may appoint an alumna to serve as a director of the board.

Section 4. The board elects its officers from among the directors. The officers are president, vice-president,

secretary and treasurer, or secretary-treasurer, all of whom are elected at the first board meeting

following the annual meeting; and serve for a minimum of one year. They may be reelected each

year until the end of their terms as a director, which is a maximum of six (6) consecutive years.

Officers may not serve more than four (4) years in one office during their consecutive terms on the

board. Ex-officio members of the board may not be officers of the corporation. If no officers exist,

the Regional Housing Specialist may appoint alumnae to the positions.

Section 5. The board shall ensure that adequate and correct accounts are kept of the business transactions of

the corporation including accounts of its assets, liabilities, receipts, disbursements, gains and

losses, if any, and of the special trust funds handled by, or in the name of, the corporation, and

shall issue Certificates of Life Membership.

Section 6. The collegiate chapter president, vice-president: finance, director: house management, advisory

team chairman and the president of the alumnae group or an elected officer of the alumnae group

she has appointed shall be ex-officio voting members of the board; however, when an individual

holds more than one of these offices, only one vote may be cast by that individual. In the case

where there are multiple people sharing the same position (ex. co-ATC), only one vote for the joint

position is permitted. It is recommended that the COA be an invited guest to all house corporation

meetings. The house director may also be asked to give a report. All non-voting members must be

excused prior to any voting by the board.

Section 7. At the annual meeting of the members of the corporation, and at any other meeting of the members

at which directors are to be elected, the then current officers shall present a written statement of the

financial condition of the corporation made as of a date not more than one month immediately

preceding the meeting, which statement shall be certified by the treasurer or other appropriate officer

as being true and correct to the best of her knowledge and belief.

Section 8. Regardless of the provisions of Article IV, any decision to buy, sell or otherwise dispose of chapter

house facilities or establish a lien thereon, must be approved by a majority of the members present

at an annual meeting of the corporation or at any other meeting of members especially called for that

purpose.

Section 9. In matters of policy concerning the affairs of the corporation, the board shall follow the

Constitution of the Delta Gamma Fraternity.

Section 10. Any member of the corporation may attend any meeting of the board for the purpose of presenting

or discussing matters which she may consider advisable, by notifying the president of the board of

such intent prior to the date set for such meeting. The board must then inform the member of the

time and place of the next meeting. The matter in question must be presented and reviewed at this

meeting. The member attending shall be excused at the conclusion of the presentation or at the

discretion of the president prior to any voting of the board.

ARTICLE VI. MEETINGS

Section 1. The annual meeting of the corporation shall be held on or around the collegiate chapter’s

Founders Day. If not possible, the meeting should at least be in the spring semester/quarter of the

collegiate chapter to enable the entire collegiate chapter membership to attend.

Section 2. Special meetings must be called by the president of the board upon direction of the board or

upon written request of ten (10) members of the corporation. Special meetings may be called by

the president of the board. The notice of any such meeting shall set forth specifically the purpose

of the meeting and no other business shall be transacted thereat. It shall be mailed at least two

weeks prior to the meeting to each member at her last address appearing on the corporation's

records.

Section 3. Notice of the time and place of each annual meeting shall be given by the secretary and sent to

each member by mailing the same to her last known address at least one month before such

meeting. Notice in the ANCHORA (official publication of Delta Gamma Fraternity) may be used

to comply with this requirement.

Section 4. The board shall hold at least four (4) regular meetings during each fiscal year.

Section 5. Notwithstanding anything to the contrary, any meeting of the board may be held through any

electronic communication pursuant to which each director is able to hear each other director

participating in the meeting and such participation shall constitute attendance in person at such

meeting.

Section 6. A majority of the members of the board, including ex-officio members, shall constitute a quorum

for the transaction of business as long as one collegiate ex-officio member is present.

The corporation members present at the annual meeting or at special meetings shall constitute a

quorum for the transaction of business.

Section 7. Any action which may be authorized or taken at a meeting of the board may be taken without a

meeting with the affirmative vote or approval of all of the directors (including the ex-officio voting

members). Any such approval shall be in writing or evidenced by electronic indicia of assent filed

with the records of the corporation.

ARTICLE VII. COMMITTEES

Section 1. The president shall annually appoint a standing committee to be known as the house committee,

whose duties shall be to inspect the chapter house, recommend necessary repairs, and report to

the board of the general upkeep of the house. There shall be collegiate representation on this

committee.

Section 2. The president shall appoint annually a standing committee to be known as the furnishing

committee. This committee shall have complete supervision over decorating, furnishings and

replacing furnishings for the chapter house. There shall be collegiate representation on this

committee. This committee may be combined with the house committee.

Section 3. The president may appoint annually a nominating committee whose duties shall be to nominate

and present at the annual meeting the names of the candidates for director to be voted upon at

that annual meeting. There shall be collegiate representation on this committee. Nominations

from the floor may also be entertained at the annual meeting. Prior notification to the committee

is preferred.

Section 4. The house corporation shall maintain an employment committee whose chairman is an elected

director of the house corporation board and appointed by the house corporation president.

Employment committee membership shall be as follows: committee chairman, the advisory team

chairman, and one other collegiate member of the house corporation board appointed by

collegiate chapter president. The employment committee will hire, train and hold a yearly

performance review of the house director. The committee will share recommendations with the

house corporation regarding any changes to payroll activity including raises and the addition or

deletion of employees prior to the house corporation budget approval.

Section 5. All committees appointed by the president shall be subject to the approval of the board.

ARTICLE VIII. FISCAL YEAR

The fiscal year of this corporation shall be from July 1 to June 30.

ARTICLE IX. PARLIAMENTARY AUTHORITY

Robert's Rules of Order, newly revised, shall govern the proceedings of this corporation in all cases not

provided for in these Bylaws.

ARTICLE X. AMENDMENTS

The Articles and Sections which are not governed by, or subject to, the general regulations and policies of the

Delta Gamma Fraternity may be amended at any annual or special meeting of the members of the corporation

by a two-thirds vote of those present.

ARTICLE XI. INDEMNIFICATION

Any person who at any time serves or has served (a) as a director, officer, employee or agent of the corporation,

or (b) at the request of the corporation, in such capacity for any other corporation, partnership, joint venture,

trust or other enterprise, shall have a right to be indemnified by the corporation to the fullest extent permitted by

law against (i) reasonable expenses, including attorneys’ fees, actually and necessarily incurred by him in

connection with any threatened, pending or completed action, suit or proceedings, whether civil, criminal,

administrative or investigative, brought by a third party seeking to hold him liable by reason of the fact that he

is or was acting in such capacity, and (ii) reasonable payments made by him in satisfaction of any judgment,

money decree, fine, penalty or settlement for which he may have become liable in any such action, suit or

proceeding. Such person shall not be indemnified by the corporation against suits brought by or on behalf of the

corporation, seeking to hold him liable by reason of the fact that he is or was acting in such capacity, unless

such person is found blameless by a court of law or other properly constituted tribunal.

ARTICLE XII. DISSOLUTION

The Council of Delta Gamma Fraternity must approve any dissolution. In the event collegiate chapter of

Delta Gamma Fraternity shall cease to exist; the affairs of the corporation shall be liquidated when required by the

Delta Gamma Fraternity and its net assets shall be transferred to the Delta Gamma Fraternity, an Ohio

corporation, and held in trust in the name of House Corporation, until such time as it reincorporates or for a period of ten years, whichever occurs first. This Article shall not be altered, modified or rescinded without the prior written permission of the Council of Delta Gamma Fraternity.

Adopted on: _____________________________________

(date)

Bylaws committee signatures

(In case of Bylaw revision)

Revised: (date)

Model Bylaws or Code of Regulations

For Delta Gamma House Corporations

(No Room Agreement/Unhoused Groups)

This model should be adopted by your house corporation. A local attorney may be consulted if there are

specific requirements governed by the laws of your state. If it is necessary to make changes, prior approval

of your Regional Housing Specialist must be obtained.

ARTICLE I. NAME

The name of this corporation shall be (Greek chapter letters) House Corporation of Delta

Gamma Fraternity.

ARTICLE II. PURPOSE

This corporation is chartered by the State or Province of , not for profit, and with the objective,

first and foremost, of establishing and providing a suitable social environment for its collegiate chapter of

Delta Gamma Fraternity, by, but not limited to, owning, equipping maintaining, and managing a chapter

house (facility or accommodations) for pleasure, recreation, and other non profitable purposes including

the social gathering and enrichment of its members and the collegiate chapter of Delta Gamma Fraternity.

The purpose of these bylaws is to specify the methods of operation by which the objectives of the charter

may be attained, and to provide for the disposition of the assets of the corporation in the event this

corporation dissolves or the charter of this collegiate chapter is relinquished or is withdrawn by Delta

Gamma Fraternity.

ARTICLE III. MEMBERSHIP

Membership shall be classified as follows:

Class A. Any alumna who was a member of the corporation prior to the adoption of these articles.

Class B. Every member of chapter of Delta Gamma Fraternity who has paid the Corporation

Fee in the amount stated in the current Annual Agreement. Upon payment of the amount and

initiation into this chapter of Delta Gamma, a Certificate of Life Membership into this corporation

will be issued. Those collegiate members of Delta Gamma Fraternity who affiliate with this chapter

may become life members of this corporation upon payment of a fee of to this corporation.

(suggested fee of $5.00)

Class C. Any alumna member of Delta Gamma Fraternity, who has paid the minimum Corporation

Fee of , shall become a life member of this corporation. (suggested fee of $5.00)

ARTICLE IV. VOTING PRIVILEGES

All members of the corporation are qualified to vote on certain matters pertaining to the business of the

corporation, specifically the election of directors, and any decision to buy, sell or otherwise dispose of

chapter house facilities or establish a lien thereon. These votes take place at the annual meeting of the

membership.

ARTICLE V. DIRECTORS

Section 1. The property and business of the corporation shall be managed, and controlled by, and power

and authority vested in, a house corporation board. The board shall consist of not less than

two (2), nor more than eleven (11), elected directors of the corporation and the ex-officio

members set forth in Article V., Section 6. The directors shall hold office for a term of two

(2) years, with the terms staggered. No director shall serve for more than three (3) consecutive

full terms without one intervening term. Directors and officers must be members of the

corporation and must be in good standing with the Fraternity to hold office. Good standing is

defined as having paid alumnae per capita dues to the Fraternity, not currently being on

probation and not being expelled from membership in Delta Gamma Fraternity.

Section 2. Any director of the corporation may be removed by the unanimous vote of the other members

of the board or by two-thirds of those members of the corporation who are present at a special

meeting called for this purpose.

The board and the corporation shall abide by, and conform to, the policies established from

time to time by the Council of Delta Gamma Fraternity with respect to the financing,

governing, building and remodeling of chapter house facilities, and shall recognize and abide

by any action taken by the Council of Delta Gamma Fraternity with respect to the requested

resignation or removal from office of any member of the board or officer of this corporation

who does not fulfill properly the requirements of her office or who fails or refuses to comply

with the policies or requirements of the Council of Delta Gamma Fraternity. Should Council’s

policies conflict with other corporation rules or policies, Council’s policy will control. This

section shall not be altered, modified or rescinded without the prior, written permission of the

Council of Delta Gamma Fraternity.

Section 3. The board shall have the power to fill any director vacancy on the board, subject to Council’s

approval if the vacancy was created by Council’s action. The director so appointed shall serve

until the next annual meeting, at which time a director will be elected to serve until the

expiration of the term of the director whom she succeeds. In the case that the board has no

directors, the Regional Housing Specialist may appoint an alumna to serve as a director of the

board.

Section 4. The board elects its officers from among the directors. The officers are president, vice-

president, secretary and treasurer, or secretary-treasurer, all of whom are elected at the first

board meeting following the annual meeting; and serve for a minimum of one year. They may

be reelected each year until the end of their terms as a director, which is a maximum of six (6)

consecutive years. Officers may not serve more than four (4) years in one office during their

consecutive terms on the board. Ex-officio members of the board may not be officers of the

corporation. If no officers exist, the Regional Housing Specialist may appoint alumnae to the

positions.

Section 5. The board shall ensure that adequate and correct accounts are kept of the business transactions

of the corporation including accounts of its assets, liabilities, receipts, disbursements, gains

and losses, if any, and of the special trust funds handled by, or in the name of, the corporation,

and shall issue Certificates of Life Membership.

Section 6. The collegiate chapter president, vice-president: finance, director: house management,

advisory team chairman and the president of the alumnae group or an elected officer of the

alumnae group she has appointed shall be ex-officio voting members of the board; however,

when an individual holds more than one of these offices, only one vote may be cast by that

individual. In the case where there are multiple people sharing the same position (ex. co-

ATC), only one vote for the joint position is permitted. It is recommended that the COA be

an invited guest to all house corporation meetings. The house director may also be asked to

give a report. All non-voting members must be excused prior to any voting by the board.

Section 7. At the annual meeting of the members of the corporation, and at any other meeting of the

members at which directors are to be elected, the then current officers shall present a written

statement of the financial condition of the corporation made as of a date not more than one

month immediately preceding the meeting, which statement shall be certified by the treasurer

or other appropriate officer as being true and correct to the best of her knowledge and belief.

Section 8. Regardless of the provisions of Article IV, any decision to buy, sell or otherwise dispose of

chapter house facilities or establish a lien thereon, must be approved by a majority of the

members present at an annual meeting of the corporation or at any other meeting of members

especially called for that purpose.

Section 9. In matters of policy concerning the affairs of the corporation, the board shall follow the

Constitution of the Delta Gamma Fraternity.

Section 10. Any member of the corporation may attend any meeting of the board for the purpose of

presenting or discussing matters which she may consider advisable, by notifying the president

of the board of such intent prior to the date set for such meeting. The board must then inform

the member of the time and place of the next meeting. The matter in question must be

presented and reviewed at this meeting. The member attending shall be excused at the

conclusion of the presentation or at the discretion of the president prior to any voting of the

board.

ARTICLE VI. MEETINGS

Section 1. The annual meeting of the corporation shall be held on or around the collegiate chapter’s

Founders Day. If not possible, the meeting should at least be in the spring semester/quarter

of the collegiate chapter to enable the entire collegiate chapter membership to attend.

Section 2. Special meetings must be called by the president of the board upon direction of the board or

upon written request of ten (10) members of the corporation. Special meetings may be called

by the president of the board. The notice of any such meeting shall set forth specifically the

purpose of the meeting and no other business shall be transacted thereat. It shall be mailed at

least two weeks prior to the meeting to each member at her last address appearing on the

corporation's records.

Section 3. Notice of the time and place of each annual meeting shall be given by the secretary and sent

to each member by mailing the same to her last known address at least one month before such

meeting. Notice in the ANCHORA (official publication of Delta Gamma Fraternity) may be

used to comply with this requirement.

Section 4. The board shall hold at least two (2) regular meetings during each fiscal year.

Section 5: Notwithstanding anything to the contrary, any meeting of the board may be held through any

electronic communication pursuant to which each director is able to hear each other director

participating in the meeting and such participation shall constitute attendance in person at

such meeting.

Section 6. A majority of the members of the board, including ex-officio members, shall constitute a

quorum for the transaction of business as long as one collegiate ex-officio member is present.

The corporation members present at the annual meeting or at special meetings shall constitute

a quorum for the transaction of business.

Section 7. Any action which may be authorized or taken at a meeting of the board may be taken

without a meeting with the affirmative vote or approval of all of the directors (including the

ex-officio voting members). Any such approval shall be in writing or evidenced by

electronic indicia of assent filed with the records of the corporation.

ARTICLE VII. COMMITTEES

Section 1. The president shall annually appoint a standing committee to be known as the suite/lodge

(pick the appropriate option) committee, whose duties shall be to make recommendations

to the board of necessary repairs, decorating needs or furnishings that need updating or

replaced. There shall be collegiate representation on this committee.

Section 2. The president may appoint annually a nominating committee whose duties shall be to

nominate and present at the annual meeting the names of the candidates for director to be

voted upon at that annual meeting. There shall be collegiate representation on this

committee. Nominations from the floor may also be entertained at the annual meeting. Prior

notification to the committee is preferred.

Section 3. All committees appointed by the president shall be subject to the approval of the board.

ARTICLE VIII. FISCAL YEAR

The fiscal year of this corporation shall be from July 1 to June 30.

ARTICLE IX. PARLIAMENTARY AUTHORITY

Robert's Rules of Order, newly revised, shall govern the proceedings of this corporation in all cases not

provided for in these Bylaws.

ARTICLE X. AMENDMENTS

The Articles and Sections which are not governed by, or subject to, the general regulations and policies of

the Delta Gamma Fraternity may be amended at any annual or special meeting of the members of the

corporation by a two-thirds vote of those present.

ARTICLE XI. INDEMNIFICATION

Any person who at any time serves or has served (a) as a director, officer, employee or agent of the

corporation, or (b) at the request of the corporation, in such capacity for any other corporation, partnership,

joint venture, trust or other enterprise, shall have a right to be indemnified by the corporation to the fullest

extent permitted by law against (i) reasonable expenses, including attorneys’ fees, actually and necessarily

incurred by him in connection with any threatened, pending or completed action, suit or proceedings,

whether civil, criminal, administrative or investigative, brought by a third party seeking to hold him liable

by reason of the fact that he is or was acting in such capacity, and (ii) reasonable payments made by him

in satisfaction of any judgment, money decree, fine, penalty or settlement for which he may have become

liable in any such action, suit or proceeding. Such person shall not be indemnified by the corporation against

suits brought by or on behalf of the corporation, seeking to hold him liable by reason of the fact that he is

or was acting in such capacity, unless such person is found blameless by a court of law or other properly

constituted tribunal.

ARTICLE XII. DISSOLUTION

The Council of Delta Gamma Fraternity must approve any dissolution. In the event collegiate

chapter of Delta Gamma Fraternity shall cease to exist; the affairs of the corporation shall be liquidated

when required by the Delta Gamma Fraternity and its net assets shall be transferred to the Delta Gamma

Fraternity, an Ohio corporation, and held in trust in the name of__________ House Corporation, until such

time as it reincorporates or for a period of ten years, whichever occurs first. This Article shall not be altered,

modified or rescinded without the prior written permission of the Council of Delta Gamma Fraternity.

Adopted on:________________________________

(date)

Bylaws committee signatures

__________________________________________

__________________________________________

__________________________________________

(In case of Bylaw revision)

Revised: _______________

(date)