Alpha Phi Fraternity

Collegiate Housing and Infrastructure Act:
H.R. 643 and S.638

501(c)(3) Tax Provision Background:

· Currently, organizations like the Alpha Phi Foundation may only raise and/or donate tax-deductible contributions for educational purposes such as scholarships, and renovation of library and education-related facilities.

· Colleges and universities use tax-deductible contributions for a variety of purposes, including expansion, renovation, and improvement of student living facilities such as classrooms, laboratories, dormitories, meeting areas and dining facilities.

· The Internal Revenue Code forbids fraternities, sororities, and other student associations that operate 501(c)(3) foundations, like the Alpha Phi Foundation, from using tax-deductible contributions for the expansion, renovation, and improvement of the student living spaces we own and operate, such as similar infrastructure improvements to student housing, meeting areas and dining facilities.

Chapter Facilities Situation Analysis

· Our chapter houses are deteriorating because under the current tax law, the Alpha Phi Foundation cannot raise and use donated funds for long-term capital improvements and makes it incredibly difficult to:

§ Improve life-safety systems such as fire sprinklers, hard-wired alarms, and security systems.

§ Upgrade obsolete electrical systems and make our housing accessible for modern technological needs.

§ Make major repairs and renovations to housing that has been heavily used for decades.

Safety Of Our Members

· Fire safety is our major concern. Each year, fraternity housing fires nationwide have twice the injury rate and five times the property damage of other collegiate housing fires, primarily because we lack the funding needed to install life-safety equipment.

· The April 10, 2005 house fire at Miami University in the state of Ohio that killed three students, and the August 2004 fire at the Alpha Tau Omega house at the University of Mississippi, which also resulted in the deaths of three students, are the latest in a series of preventable tragedies.

· Studies show that 80% of fatalities in student housing fires since 2000 have occurred in off campus housing such as fraternities and sororities where a majority of students live.

· The Collegiate Housing and Infrastructure Act of 2007 (H.R. 643/S.638) would allows tax deductible contributions to fraternity and sorority foundations to be used for the same purposes that a college or university could use such contributions (except for physical fitness equipment).

· In the 108^th Congress, the Collegiate Housing and Infrastructure Act was included in the Charitable Giving Act of 2003 that passed the House by a 408-13 margin. The 2005 version of the Collegiate Housing and Infrastructure Act is the same as the language within the Charitable Giving Act of 2003 that passed the House in the last Congress.

Preserving the Future of Not-for-Profit Student Housing

Our Growing Population of College Students Needs Safe, Modern and Affordable Housing. Rising enrollment is creating severe housing shortages on college campuses nationwide, with many institutions forced to put students into private hotels, dormitory lounges and triple resident rooms. Post-secondary enrollment will increase 15% from 1999-2011 as a "baby boomlet" peaks in 2008, when 2.1 million students will be enrolled in colleges and universities nationwide.

Greek Housing is a Key Source of Collegiate Housing. The housing shortage would be even worse without fraternities and sororities, who are the nation’s largest not-for-profit student landlords, operating several billion dollars in housing for more than 250,000 students each year at no cost to the host institutions. Fraternal housing, like the housing provided by host institutions, offers students a living and learning environment designed to promote academic and personal enrichment.

Collegiate Housing Capacity and Safety Need to be Upgraded. Life safety upgrades are the top challenge facing fraternal housing, as their smaller and older living spaces have twice the injury rate of other campus fires and significantly higher rates of property losses. Studies show that 80% of fatalities in student housing fires since 2000 have occurred in off campus housing such as fraternities and sororities where a majority of students live. The April 10, 2005 house fire at Miami (OH) University that killed three students, and the August 2004 fire at the Alpha Tau Omega house at the University of Mississippi, which also resulted in the deaths of three students, are the latest in a series of preventable tragedies.

The Current Tax Code Hinders Modernization and Safety of Some Student Housing. The federal income tax code allows colleges and universities to use tax deductible contributions for infrastructure improvements to classrooms, laboratories, dormitories, meeting areas and dining facilities, but forbids contributions to fraternity and sorority foundations to be used to make similar infrastructure improvements to student housing, meeting areas and dining facilities.

The Time Has Come for Equitable Treatment. There is no good policy reason for distinguishing between gifts made to colleges and universities for infrastructure improvements and gifts made to fraternities and sororities for the benefit of similarly situated students. The Collegiate Housing and Infrastructure Act of 2007 (H.R. 643/S.638) erases this disparity and allows tax deductible contributions to fraternity and sorority foundations to be used for the same purposes that a college or university could use such contributions (except for physical fitness equipment). In the 108^th Congress, the Collegiate Housing and Infrastructure Act was included in the Charitable Giving Act of 2003 that passed the House by a 408-13 margin. The 2005 version of the Collegiate Housing and Infrastructure Act is the same as the language within the Charitable Giving Act of 2003 that passed the House in the last Congress.

Passing the Collegiate House and Infrastructure Act would:

Encourage new charitable contributions to improve current collegiate housing, thereby preserving and upgrading existing housing capacity and helping construct the new housing capacity needed to accommodate rapidly growing student populations.

Result in safer student housing by enabling fraternities and sororities to fund the installation of modern life safety equipment such as fire sprinklers, smoke detectors and alarm systems.

Promote a private-sector solution to protect and preserve public investments in higher education institutions and the students themselves.

Today’s Fraternal Groups Are Home to Tomorrow’s Leaders

The Greek system offers college students unparalleled academic, community and leadership development experiences. While it is fashionable for the media to highlight negative stereotypes and focus on an occasional misdeed, the reality is Greek life remains a positive influence for our members, colleges and communities. Three associations oversee 101 fraternities and sororities with 750,000 undergraduate members at 12,000 chapters:

The North-American Interfraternity Conference (NIC) represents 66 fraternities with 350,000 undergraduate members and 4.2 million living alumni.

The National Panhellenic Conference (NPC) coordinates 26 autonomous sororities with 250,000 undergraduate members and 3.5 million alumnae.

The National Pan-Hellenic Council (NPHC) represents nine African-American fraternities and sororities with 5,500 chapters and 1.6 million living alumni/alumnae.

We have 9 million members, including 153 Members of the House and Senate.

We are the most successful leadership development program for college students. Our members manage organizations of up to 200 members, with housing facilities and operating budgets that run into the mid-six figures. Financial management, conflict resolution, public relations, effective goal setting and basic democratic principles are everyday lessons for our members. Our comprehensive leadership programs teach values-based management skills to our members. Our members graduate with the management and interpersonal skills needed to excel in today’s society.

We are the nation’s largest network of young volunteers. Fraternity and sorority members are committed to improving the world in which we live. We provide 10 million hours of volunteer service a year. We mentor at-risk students, raise funds for medical research, offer aid at senior citizen facilities, build homes for the poor and collect food for the homeless. Our emphasis on service learning prepares members for a lifetime of community involvement.

We are the largest, most visible and most active values-based organizations on college campuses. We all share a common code of friendship, service and the pursuit of excellence. Every fraternity and sorority is guided by founding principles and values that serve as a moral beacon for its members. We use educational programming to help members incorporate these principles and values into their daily lives. Our emphasis on values helps college students form the moral foundation for their future actions.

We are the nation’s largest not-for-profit student landlord. Our housing is a classic American melting pot where members from different cultures, religions and experiences live and work together on a daily basis. We own and manage $3 billion in student housing at no cost to the American taxpayers. We house 250,000 students a year in 8,000 facilities with a replacement cost and capacity that universities cannot afford to bear. Our houses operate almost exclusively on student rents and we do not have the ability to raise tax-deductible funding for important life-safety capital improvements. Our members have a better understanding and appreciation of the diverse cultures, workplaces and communities that await them after graduation.