At the 154th Anniversary Convention held June 30th thru July 3rd in Orlando Florida it was announced that Theta Chi would be making changes to its current general liability insurance program in relation to coverage for undergraduate chapters and house corporations effective October 1st. This change is being made due to the rising cost of insurance and litigation incurred by Theta Chi chapters and house corporations. To date all house corporations have been provided “general liability” coverage at no additional charge when their associated undergraduate chapter paid their risk management assessment. Theta Chi has elected to accept a reduction in the coverage made available to undergraduate chapters and house corporations under the national fraternity sponsored program to a limit of $250,000 per occurrence (chapter/house corporation) and $500,000 in the aggregate per location in an effort to control future cost of insurance.
Read more…
A crucial filing deadline of November 15 is looming for many tax-exempt organizations that are required by law to file their Form 990 with the Internal Revenue Service (IRS) or risk having their federal tax-exempt status revoked. The Pension Protection Act of 2006 mandates that all non-profit organizations, other than churches and church-related organizations, must file an information form with the IRS. This requirement has been in effect since the beginning of 2007, which made 2009 the third consecutive year under the new law. Any organization that fails to file for three consecutive years automatically loses its federal tax-exempt status. Under the law, the IRS does not have discretion in this matter.
Are You At Risk?
The IRS website has a list of organizations at risk of losing their tax-exempt status because, according to IRS records, they have not filed for 2007, 2008 and 2009. The list contains the name of the organization and its last-known address. Check this list to see whether your organization is at risk of automatic revocation and can avoid this consequence by following IRS guidance.
Read more…
Fraternities are following the lead of sororities by replacing the standard key lock systems on their chapter houses with fingerprint readers. These devices use biometric technology to turn an authorized person’s fingerprint in to a numerical algorithm. The authorized person must subsequently provide that same fingerprint to be read and recognized by the reader before access is granted. The fingerprint readers increase the security level of the house by eliminating the risk of a key ending up in the wrong hands. Only the with person authorized access can successfully pass a biometric reader and it also requires that the person be physically present for access to be granted.
Read more…
New Laws Require Smoke Detectors to have Electrical Backup; Fraternities and Sororities to have Fire Sprinkler Systems
BLOOMINGTON – July 27, 2010. Governor Pat Quinn today signed a bill into law that requires fraternity and sorority housing in Illinois to install automatic fire sprinkler systems. Governor Quinn also highlighted a new law that requires housing units in Illinois to have a backup power supply for all smoke detectors that are wired to a building’s electrical supply.
Read more…
By Bobbi Larsen
Before you know, it will be the last week of school and students will be completing final exams. Summer break, or the months of May through August, is a high risk period of time for chapter houses. It is important you take the time to properly prepare your chapter house for the summer break period.
The leading risks to a chapter facility during the summer break period are:
- Fire
- Vandalism
- Theft
- Water damage
- Wind
- Hail
Read more…
Making sure you select the right contractor can save you down the road.
By Mick McGill
The roles and responsibilities of ownership and property management of a fraternity/sorority house can be complex and time consuming. A facility housing a large number of undergraduate students requires a hands-on approach and constant monitoring to ensure the facility remains a source of pride for the organization and also provides a safe living environment for its tenants. Owners and Housing Corporations are constantly identifying and making decisions as to what construction projects are warranted to ensure the facility remains in good physical condition. This process results in contracting with local construction companies to complete the applicable work.
When entering into agreements with contractors or other entities, it is very important to be wary of the terms and conditions associated Read more…
To prepare for a break or vacation, when few or no people will be around, several steps should be taken to reduce costs, prevent serious damage and improve security and safety. Breaks are also good times to conduct maintenance and improvement projects. Consider the following check list as it applies to your situation.
Spring Break House Manager – If the chapter house manager will be away during the break someone else must be appointed to take over his duties in the interim.
Fire Department, Police and Alarm Company Notification – Be sure to notify the fire department, the police and your alarm company whether your house will be open or closed, and make sure they know the person to contact in the event of an emergency. If the police and alarm company know your property will be closed, they will watch it more closely.
Notify Neighbors – Let the neighbors know whether or not your house will be vacant. If a small number of tenants will occupy the house, it would be good for them to introduce themselves to the neighbors.
Exterminating – When the house is vacant, it’s the best time for an extermination company to do a major insect and rodent extermination project.
Read more…
Many House Corporation Boards employ House Directors on a contractual basis: the House Director is paid a defined sum each month for the term of the contract. In other words, the House Director is an Independent Contractor.
There are pros and cons relating to this type of arrangement. The pros are simple: the HouseCorporation does not need to withhold payroll taxes or purchase workers compensation insurance for this person. The cons are more complex. The Contract House Director is not afforded liability insurance protection under the Fraternity’s insurance program. This results in an uninsurable exposure for the Contract House Director. As an example, if the Contract House Director’s negligence resulted in a fire to the chapter house, the property insurance company would pay for the damages and potentially pursue subrogation against the Contract House Director as the assumption is that this person carriers Liability Insurance. In addition, the Contract House Director could be named in a lawsuit by a member, candidate for membership or other 3rd party alleging the negligence of the Contract House Director resulted in some sort of bodily injury, property damage or personal injury to them. In this scenario, the Contract House Director would NOT be covered under the Fraternity’s Liability Insurance program. Thus, s/he becomes personally liable for hiring an attorney to answer the lawsuit and defend her/him as well as pay any judgment awarded by a jury or court. Even if the lawsuit had no legitimate basis, the Contract House Director would incur the cost to retain an attorney to answer the complaint and defend her/him at least until which time s/he is removed as a defendant in the matter.
Read more…
Recruitment is the life blood of any fraternal organization and it is true with Theta Chi. If a recruitment program fails, a shock wave is felt within the chapter and the Fraternity. It is important that undergraduates develop their communication, interpersonal, and selling skill so that they can reach out to other young men to join Theta Chi.
While “recruitment” is mostly an undergraduate function, alumni should not sit on the side lines and watch the game. Alumni Volunteer groups can have an impact on the game. The information provided below provides some ideas for chapter advisors, house corporation members, alumni association groups and the general alumnus brother that can help with chapter recruitment.
CHAPTER ADVISOR(S)
• Recruit an alumnus (Theta Chi or non-Theta Chi; male or female) to be a Recruitment Advisor.
• Show the men how to talk to prospective new members.
• Teach other social skills, such as table manners and proper etiquette. Some members may lack basic social skills and need to be taught how to make introductions and maintain a conversation. Read more…
The chapter house is not just a home; it is a symbol of the values shared by both undergraduates and alumni alike. As co-stewards of those values, one of the vital functions of the House Corporation is to preserve the corporation’s assets and to make certain that there is enough income to maintain the property, both for today’s students and those who will follow. The “business” of brotherhood & sisterhood, then, is extremely important.
Having served hundreds of House Corporations over the years, Omega Financial has been asked to help more than a few out of a fiscal nightmare. Based on our experience, here are some of the items we’ve seen to be of critical importance:
Read more…
At the 154th Anniversary Convention held June 30th thru July 3rd in Orlando Florida it was announced that Theta Chi would be making changes to its current general liability insurance program in relation to coverage for undergraduate chapters and house corporations effective October 1st. This change is being made due to the rising cost of insurance and litigation incurred by Theta Chi chapters and house corporations. To date all house corporations have been provided “general liability” coverage at no additional charge when their associated undergraduate chapter paid their risk management assessment. Theta Chi has elected to accept a reduction in the coverage made available to undergraduate chapters and house corporations under the national fraternity sponsored program to a limit of $250,000 per occurrence (chapter/house corporation) and $500,000 in the aggregate per location in an effort to control future cost of insurance. 
