Create a Chapter House Improvement Program Fund
New Resource Now Available for Chapter House Corporations!
Click here to download "A Guide to Fundraising for Housing" for Chapter House Corporations. This new resource provides tips and best practices for successful fundraising, explains tax law and Pi Phi guidelines, and offers recommended reading and additional resources. Questions about this guide? Contact Teri Chadwick, Executive Director.
What is a CHIP?
A Chapter House Improvement Program (CHIP) Fund allows chapter alumnae to make tax-deductible contributions in support of their chapter and provide a fund that their Chapter House Corporation (CHC) can access to fund qualified improvements to the chapter house.
Why don’t I just make a gift directly to my CHC?
You certainly can, and many alumnae do. However, due to current IRS law those donations are not tax-deductible. Particularly for major gifts, tax considerations are important. A CHIP allows a donor to make a gift to their chapter and realize the tax benefits.
How can I establish a CHIP for my chapter?
A CHIP Fund can be established with any initial gift and/or pledge of $10,000 or more. Any individual, chapter or chapter house corporation can establish a CHIP Fund.
Who can donate to a CHIP Fund?
Once a CHIP Fund has been established, anyone can make a gift to a CHIP Fund and in any amount. The Foundation will also accept pledges of up to three years for gifts of a $1,000 or more.
Also, the Foundation will be able to accept gifts of appreciated securities, IRA rollovers and planned gifts designated to your chapter’s CHIP Fund.
Can CHCs fundraise for our CHIP Fund?
Yes, but all CHC efforts to fundraise that include soliciting contributions for their CHIP fund must be conducted with the prior approval of and in concert with the Foundation.
What can a CHIP be used for?
Basically, anything that is qualified charitable and is comparable to what the university offers in its student housing. Examples include dedicated study, library, computer and instructional areas of a chapter house, and items in these areas such as computers, computer desks and computer chairs, provided the CHC retains ownership of these items. Wireless or hardwired Internet access may qualify as well. Finally, grants can be made for annual operating expenses (insurance, utilities and similar items) relating to dedicated educational areas, as well as for the installation of fire alarms, smoke detectors and internal sprinkler systems for dedicated educational areas. Any reasonable allocation may be used for determining educational space in the chapter house.
How does the CHC access their CHIP Fund?
There are several steps to undertake in preparation; none are too complicated. Then, basically the CHC applies for reimbursement.
What will this cost the CHC?
It costs the CHC nothing for the Foundation to maintain a CHIP Fund. Gifts to CHIP Funds will be assessed a 2% Friendship Fund fee upon receipt to offset gift administration and overhead costs.
In summary
The CHIP Fund is a new initiative by which the Foundation can connect alumnae and other interested donors wishing to support their chapter houses with the CHC’s and their need for funds for qualified educational expenditures.
If you are interested in establishing a CHIP, please contact Teri Chadwick, Executive Director.
