ALPHA XI DELTA FRATERNITY
8702 Founders Road / Indianapolis, IN 46268
Phone: (317) 872-3500 / Fax: (317) 872-2947
[email protected]
FUND-RAISING POLICIES
2/03-129
ALPHA XI DELTA'S CURRENT FUND-RAISING POLICIES
From:
Alpha Xi Delta Fraternity Constitution and Bylaws, 28th Edition, 2001
(Bylaws)
ARTICLE XIV — Solicitation of Funds
Sec. 1.
Charitable Contributions. A college chapter or an alumnae association may solicit funds from
members and non-members. Such funds are to be donated to charitable organizations. The
solicitation must be done in accordance with the laws and ordinances of the city and state in which
the chapter or association is located.
Sec. 2.
Fund Raising. College chapters, alumnae associations and building corporations that wish to do
fund raising must request approval from National Council’s designee. The fund-raising plan and
format must be reviewed by National Council’s designee before the fund raising occurs.
Clause 1.
Fraternity Members.
A. A college chapter may solicit funds only from members of that chapter.
B.
An alumnae association or a building corporation may solicit funds only from
its own members.
C. Any individual or group not included in the foregoing, but associated with the
Fraternity, may solicit funds only with the prior approval of National
Council’s designee.
Clause 2.
From:
Non-Members. The solicitation of funds from non-members, including parents,
shall be permitted only with approval of National Council’s designee.
Alpha Xi Delta Building Corporation Manual, 3rd Edition, June 2001
CHAPTER 5. FINANCIAL OPERATIONS
SOURCES OF INCOME
Corporation Members' Gifts and Donations
At times, corporations may have to raise funds to build, purchase, or rehabilitate a housing facility, or
to maintain college-owned property. All corporations may conduct fund-raising efforts among their
1
own members, but must have National Council approval to solicit other Alpha Xi Delta members. Any
fund-raising effort that has a goal to fund a major project needs careful and long-range planning to
maintain enthusiasm and reach the goal. Donations are not tax deductible to the donor.
Some corporations have successfully used a program to solicit annual donations from the chapter's
alumnae. Variations of one corporation's 10/10 program ($10 from each graduated member for 10
years) are used by a number of corporations. A few corporations have offered to pay interest to
investors and have successfully used such a program to raise needed capital.
The IRS fund-raising policy requires a clear statement in every fund-raising appeal (letter, newsletter,
speech) that donations to fraternity chapters and corporations are not tax deductible for the donor.
There is a substantial fine. This applies to all corporations except the few that are incorporated as
foundations.
If you are unsure about the acceptability of a fund-raising project, please contact Lori Holt, Director of
Finance and Operations, at Fraternity Headquarters: Voice mail - (317) 872-3500, Extension 127; Email - [email protected].
FREQUENTLY ASKED QUESTIONS
Q.
What are acceptable fund-raising activities?
A.
Acceptable fund-raisers include:
ushering at sporting or theater events
selling concessions at sporting events (no alcohol for collegians)
selling homecoming buttons
car washes
candy sales or holiday sales
alumnae auctions
T-shirt sales
Unacceptable fund-raisers include:
tuck-ins
bachelor bazaars
slave auctions
swimsuit calendars
alcohol-related events such as Oktoberfest
cocktail waitressing
sale of T-shirts with alcohol-related slogans (e.g., Absolut Alpha Xi Delta)
any activity that raises money for formals, date parties, or social events
Q.
Can college chapters solicit alumnae associations for money for their convention, leadership
conference, and other national or regional conferences?
A.
Yes. Alumnae associations may donate money to college chapters to be used for specific purposes.
Alumnae associations may raise funds on behalf of college chapters according to fund-raising policies
previously mentioned.
2
Q.
If a college chapter raises money for a philanthropic event, may the chapter keep 50% of the
money and donate the other 50% to the charitable organization?
A.
No. All money raised for philanthropy (minus the operating costs) MUST be donated to the charitable
organization. Remember, the chapter may donate a portion of the money raised to the Alpha Xi Delta
Foundation at Fraternity Headquarters since the Foundation has the IRS status as a charitable
organization – 501 (c)(3). In publicity material, it is important to name the recipient(s) of the money
(e.g., the charitable organization and Alpha Xi Delta Choose Children).
Q.
When can the money solicited be tax-deductible to the donor?
A.
Only when the money is donated to a 501(c)(3) organization, such as the Alpha Xi Delta Foundation,
can it be tax-deductible for the donor.
Q.
What is a 501(c)(7) organization?
A.
Under the IRS Section Code, a 501(c)(7) is a social organization whose primary function is social
activity and has members and limitations on membership.
Q.
Why can't we fund-raise for socials?
A.
Alpha Xi Delta is a 501(c)(7) organization that the Internal Revenue Service defines as a social
organization. Dues paid by members are to pay for the functions of the social organization. A 501(c)(7)
such as Alpha Xi Delta National Fraternity also has specific limits as to how much money can be raised
from non-members before the IRS revokes the tax-exempt status granted Alpha Xi Delta Fraternity, its
chapters, and its alumnae associations.
Q.
What does tax-exempt status mean?
A.
It means that the money raised and collected for member dues is not taxable by the IRS.
Q.
What would happen if Alpha Xi Delta lost its tax-exempt status?
A.
ALL Alpha Xi Delta funds collected at the chapter, association, and national levels would be taxed by
the IRS.
129fund.doc/s/mailings/feb03
3