Theta Tau

1
2004 Theta Tau National Convention
2

• Alumni
• Track

3
Becoming an Effective Adviser
4
Becoming an Effective Adviser
"We don't always know whose lives we touched and
made better for having cared because actions can
sometimes have unforeseen ramifications. What is
important is that you do care and you act."
-Charlotte Lunsford
5
Becoming an Effective Adviser
"We don't always know whose lives we touched and
made better for having cared because actions can
sometimes have unforeseen ramifications. What is
important is that you do care and you act."
- Charlotte Lunsford

• Maintenance Functions
• Leadership
• Supervisory
• Link to History
• Group Growth Functions
• Facilitation
• Sounding Board
• Program Content Functions
• Steers Program Development
• Provides Subject Matter Expertise

6
Leadership Similarities

• Vision of Success
• How do we know when we are successful?
• How do we want to communicate?

Leadership needs to exist at all levels, as
people work toward a common vision. Leadership
will come in forms such as "invisible" and
"alongside." Leadership will occur through
relationships rather than through structure.
7
Leadership Similarities

• Conflict Resolution
• Methods of Resolution
• Maintaining a Global perspective

Individuals and organizations will use conflict
and differences as constructive forces and
minimize their negative aspects. Conflict
shouldn't be seen as purely negative. Conflict
can spark creativity, stimulate innovation, and
encourage personal improvement.
8
Leadership Similarities
Individuals and organizations will use conflict
and differences as constructive forces and
minimize their negative aspects. Conflict
shouldn't be seen as purely negative. Conflict
can spark creativity, stimulate innovation, and
encourage personal improvement.

• Conflict Resolution
• Methods of Resolution
• Maintaining a Global Perspective
• Collaboration vs. Competition

9
Leadership Similarities
Individuals and organizations will use conflict
and differences as constructive forces and
minimize their negative aspects. Conflict
shouldn't be seen as purely negative. Conflict
can spark creativity, stimulate innovation, and
encourage personal improvement.

• General Rights and Responsibilities
• Adviser
• Chapter
• Specific Rights and Responsibilities
• Adviser
• Chapter

10
Leadership Similarities

• Leadership Styles
• Telling
• Selling
• Participating
• Delegating

Individuals and organizations will use conflict
and differences as constructive forces and
minimize their negative aspects. Conflict
shouldn't be seen as purely negative. Conflict
can spark creativity, stimulate innovation, and
encourage personal improvement.
11
Leadership Similarities

• Leadership Styles
• Telling
• Selling
• Participating
• Delegating

Individuals and organizations will use conflict
and differences as constructive forces and
minimize their negative aspects. Conflict
shouldn't be seen as purely negative. Conflict
can spark creativity, stimulate innovation, and
encourage personal improvement.
12
Theta Tau After Graduation Because Brotherhood
lasts a lifetime
13
Staying Involved

• Attend an initiation
• Celebrate Founders Day
• Call a brother just to see how they are
• Volunteer to give a PD tour of your Facility
• Update your contact info with your chapter
• Inform the chapter of employment opportunities at
  your company

14
Staying Involved

• Visit your chapter next time you visit campus
• Send a letter to your chapter on Founders Day
• Volunteer to speak to the chapter about your
  career
• Join or Start an Alumni Club

15
Five Steps to form anAlumni Club

• Make initial contacts to insure there is not an
  existing Alumni Club in your area.
• Formalize the New Group
• Plan the 1st Event
• Make use of the zip code list
• Plan your 1st mailing

16
Make Initial Contacts

• Call or email the Central Office
• Inform them that you would like to start an
  Alumni Club
• Request a zip code list of the brothers living in
  your target area
• Request a copy of the sample bylaws

17
Make Initial Contacts

• Inform the Regional Director
• Copy the RD on all communication to the Central
  Office
• Ask for any assistance that the Regional Director
  may have

18
Formalize the New Group

• Set up an email group
• Determine the area the group will include
• Adopt bylaws
• Use sample bylaws
• Ask other Alumni Clubs for a copy of their bylaws

19
Formalize the New Group

• Send a letter to the Grand Regent
• Request official recognition
• Include a copy of the bylaws
• Include the contact information of the founding
  members
• Inform the Grand Regent of upcoming events

20
Plan the 1st Event

• Activities
• Plan an activity that everyone can enjoy
• Select a location that is easy to find
• Plan activities that are too interesting to miss
• Find out what local alumni want to do

21
Make use of the zip code list

• Dont be shocked
• There are a large number of Theta Tau Alumni all
  over the country
• The 10 Rule (Dont be discouraged)
• Do not expect more than 5 to 10 of the list to
  attend the first event
• 10 turnout should be considered a resounding
  success

22
Prepare the 1st Mailing

• Make the mailing stylish
• Be sure to include
• The news that a Theta Tau Alumni Club has been
  formed
• Invitations to the 1st event
• The names and contact information of the founding
  members

23
Increasing Alumni Participation

• Mail all alumni in your zip code areas yearly
• Give graduating seniors a years free membership
  to get them involved in the club
• Welcome new alumni to the area

24

• Chicagoland Alumni Club
• Detroit Alumni Association
• Greater Cincinnati Alumni Club
• Midwest Alumni Association (Iowa)
• National Capital Alumni Club (D.C.)
• Puget Sound Alumni Club (Seattle)
• Twin Cities Alumni Association (Minneapolis/St.
  Paul)

25
Your Local Centennial Event
26
Educational Foundation Securing the Next 100 Years
27
Building a Better House Corporation
28
Building a Better House Corporation

• Who
• What
• Where
• Why
• When
• How

29
Who should start an HC?

• Each chapter which expects to do 1 of the
  following within the next 25-50 years
• Build Furnish
• Re-build Maintain
• Renovate Everyone

30
What is an HC?

• A house corporation is a legal entity established
  for the express purpose of
• Gathering
• Preserving
• Augmenting
• Protecting
• funds and assets (the house) for the purposes
  described above

31
Why should an HC be formed?

• The corporation provides the most effective means
  over the long-term of
• Ensuring success in fulfilling its mission
• Provides checks balances over assets
• Provides a veil of legal/corporate protection to
  the corporation and board member

32
When should an HC be formed?

• Now!
• Most groups make a fundamental error in thinking
  they can establish an HC and raise funds when
  they find a house they want.

33
How is an HC be formed?

• Incorporation process is a function of each
  states government.
• Process varies from state to state
• Some generalizations can be made about the
  process

34
How?

• Process is handed by the Secretary of State
• HC must file an Annual Report with the State
• The fees to state are nominal (25, 50, etc)
• The Board is elected to run the HC
• The HC board must meet at least annually and
  maintain minutes

35
How?

• The state requires bylaws be part of your
  incorporation papers (Articles of Incorporation
  and Bylaws)
• You want your HC to request status as a
  non-profit corporation.
• It is vital the Annual Report and Fee are
  submitted every year (or every 5 years in Ohio)
• or your corporation is dissolved

36
What does nonprofit mean?

• Is it the same as not-for-profit?
• Can we make a profit?
• Can we only break even?
• Can we get paid?

37
What does nonprofit mean?

• Nonprofit is the same as a not-for-profit
  corporation.
• Nonprofits can and need to make a profit.
• They simply cannot distribute that profit to
  shareholders because they do not issue any stock.
  

38
What does nonprofit mean?

• If your HC doesnt make a profit, it will never
  own a house.
• Instead, the profit is kept within the
  corporation to perpetuate the HC and help fulfill
  its mission

39
What about EIN, TIN, and FIN Numbers, and 501c
status?

• EIN employee identification number
• FIN federal identification number
• TIN taxpayer identification number
• SSN social security number

40

• Each HC can apply for a TIN using IRS form SS-4
• When a HCs annual gross receipts reach 25,000,
  they must file the lengthy federal tax return 990
• The 990 is simply the annual tax return that
  nonprofits file

41

• Before gross receipts reach 25,000, the HC
  should likely request determination by the IRS as
  to its tax status
• Nonprofits, even Theta Tau, sometimes pay federal
  income taxes

42

• Nonprofit designation by a state is separate and
  different from the IRS determination of federal
  tax status
• IRS tax status determination is a function of the
  federal government, not the state
• Non-profit status is a determination of state
  government, not the federal

43
The Federal Process

• As opposed to the state non-profit status,
  requesting the IRS to determine your tax status
  process is lengthy and expensive.
• Form 1024/8718 Fee 150 - 500
• Time to complete 12 hours

44
If you request IRS tax status determination

• Request status as a 501c7 corporation
• Donations to 501c7s are not tax deductible
• The Educational Foundation is a 510c3 corporation
  so donors can get tax deductions
• When IRS status is determined, it is vital that
  the HC file its federal tax return each year or
  excessive financial penalties are risked

45
When the HC is established,what do I do?

• Raise funds
• Communicate with alumni
• Raise Funds
• Elect board members
• Raise Funds
• Communicate with students
• Raise Funds
• Did I mention that you should raise funds?

46
When the HC is established,what do I do?

• Observe Regulatory Obligations
• (federal, state, and fraternity)
• Buy a headquarters
• Maintain/Oversee/Manage the chapter house

47
Raising funds

• The Theta Tau Chapter Officers Manual contains
  information on
• Housing Notes
• Fundraising Events
• Chapter Newsletters

48

• Annual events (like homecoming or chapter
  anniversary) can be when the HC board is elected
  and used as a fundraising opportunity
• Successful HCs require student members to sign a
  Promissory/Housing Note
• Chapters also often set aside into the housing
  fund a portion of its fundraising proceeds

49

• Funds raised for housing are put in a separate
  account for that purpose
• This separate account is not used for ordinary
  expenses of the HC or the chapter
• The funds are invested conservatively to
  moderately (not aggressively)

50
Regulatory Obligations

• State-Annual Report
• Fed-990
• Fraternity Laws regarding HCs
• Whats expected of us regarding Risk Management

51
Buying a house

• A great house on Fraternity Row just opened up
  and you want to buy it.
• What do you do?

52
Buy it, If you have

• Incorporated within the state
• a TIN
• Saved a down payment (20)
• a history of fundraising success
• developed a Business Model

53
A Biz Model? Whats that?

• The house may be great but it may not be right
  for your HC and Chapter. It may be
• too large
• too expensive
• too run-down
• not zoned correctly
• etc.

54
A Biz Model

• REVENUE
• __ members _at_ __ rent _____
• __ housing notes_at_ __ income _____
• __ annual fundraising _at_ __ _____
• Total Income _____

55
A Biz Model

• EXPENSE
• Mortgage payment _______
• Taxes/Insurance _______
• Utilities _______
• Maintenance _______
• Total Expense _______

56
A Biz Model

• Revenue ______
• Less Expense ______
• Net Profit ______
• (net profit should be a positive number,
• not negative, and not zero)

57

• The last item (maintenance) on the expense side
  is the most often under-budgeted
• A house with umpteen folks living in it receives
  a lot of abuse
• Failing to adequately budget for these repairs
  leads to deterioration of the asset (the house)
  that the HC was formed to preserve

58
Maintaining a House

• Relationship between chapter and House Corp
  should be professional
• Contracts signed with regards to rent, repairs,
  cleanliness, events, etc.
• give the chapter a break often hurts everyone
  in the long run when the value of the assets
  (house, fixtures, furnishings) and eventually the
  Brotherhood suffer

59

• Repair projects, especially those performed by
  members should be overseen to ensure that the
  following are met
• The chapters needs
• HC specifications
• The budget established
• Fraternity, university, and community standards

60

• No repair of significance should take place
  without prior HC approval
• Those that do should not be funded
• Here, we have already moved into the area
  maintaining a chapter house

61
The HC of 1954

• Absentee landlord
• Came by the house a couple times/year
• Chapter sent a check monthly for rent
• HC paid taxes and insurance

62
The HC of 2004

• Integrated with an Alumni Club
• Communicates with chapter, alumni, and Nat'l
  Fraternity
• Reports on its assets, income, needs, progress
• HC pays taxes/insurance

63
The HC of 2004

• Tells national Fraternity problems it sees and
  requests help when it needs it
• Requires signed lease from each tenant in the
  house
• Has written agreement with chapter and each
  tenant outlining responsibilities of tenant,
  chapter, and HC

64
The HC of 2004

• HC has walk-through with chapter at least
  quarterly
• Form used to report deficiencies after walk-thru
• HC rewards the chapter for cleanliness/maintenance
  successes
• HC approves repairs in advance and has them done
  professionally if appropriate
• HC acts as first line of defense against abuse of
  the house and all risk management concerns

65
Risk Management Policies

• Alcohol
• Controlled Substances
• Abusive Behavior
• Hazing
• Gun-Safety
• High Risk Events
• Property Management
• High-Risk Events

66
Useful Resources

• Theta Tau Officers Manual
• Theta Tau Central Office
• Alumni
• Other chapters House Corps.
• www.thetatau.org
• www.nass.org
• www.irs.gov
• www.guidestar.org

67
In Summary

• Plan ahead in forming your HC
• Be prepared to meet regulatory obligations
• Remember to preserve your housing asset
• Communicate with students and alumni
• Ask for help when you need it
• Celebrate successes and Reward them
• Questions?