General Information
What is the purpose of this fundraising project?
A: To finance the acquisition of a permanent chapter house for the SIU Beta Chi TKE members. This chapter house will provide a stable, secure and well-maintained property for current undergraduates and allow the chapter to remain competitive when recruiting future fraternity members.
Why the sudden interest in buying a permanent chapter house?
A: In late 2024, a unique property became available, whose owner has TKE connections and is highly motivated to sell to the Beta Chi chapter. He is the former owner of a regional bank in Southern Illinois and is selling his personal residence along with 5 acres of surrounding property.
Do any other Greek organizations own their own chapter house?
A: Three (3) of the nine (9) IFC-recognized fraternities currently own their own chapter house, each managed by an alumni-sponsored housing corporation or LLC: Phi Kappa Tau (purchased 2008), Sigma Pi (purchased 2013) and Alpha Gamma Rho (purchased 2021). TKE purchasing a permanent chapter house would not be unique in the SIU Greek system.
Three other fraternities have members who live in rented houses, but each tenant signs an individual, 12-month rent agreement with a property management company. In effect, their “chapter house” changes hands with each new rental agreement each year with no ownership and no property equity accumulating over time.
Who will own the property?
A: The property will be purchased by the BX Housing Corporation, LLC via a bank-financed loan. The sole purpose of the BX Housing Corporation is to hold the loan. The BX Housing Corporation, LLC has no affiliation with TKE International Headquarters.
In addition, a separately established Beta Chi Housing Board will function as the property manager for the house, executing undergrad rental agreements, collecting rent and maintaining the property. The Beta Chi Housing Board is a registered 501c7 organization and will consist of three (3) to five (5) Beta Chi alumni with career experience in finance, real estate or other appropriate backgrounds, ensuring proper long-term management of the loan and the property. Members are legally required to act in the best interests of the property and its stakeholders with the highest standards of care, loyalty, and good faith.
What happens when the loan is paid off?
A: The paid-off property will be owned by the Beta Chi Housing Board in perpetuity on behalf of the Beta Chi chapter.
Financial Concerns
Can the undergrad tenants cover the monthly/yearly costs?
A: The rent collected from undergraduate members living in the chapter house will offset the monthly loan payments, property taxes and insurance. Based on the targeted $255,000 down payment and current loan rates, 14 undergraduate tenants living in the chapter house will generate enough income to cover all fixed costs. Expectation is the house will initially hold 16 tenants, providing an income buffer each year the house maintains 100% capacity.
Until the bank loan principal is paid off, any funds collected via rent beyond those needed to cover the loan, interest, insurance, and taxes will be used for 1) establishing financial reserves, 2) paying down the loan principal OR 3) funding home improvement projects in full. The Beta Chi Board of Advisors, which includes both alumni and undergrads, will provide guidance and recommendations to the Beta Chi Housing Board for use of any excess rent-generated funds.
Members of the Beta Chi Housing Board cannot be members of the Beta Chi Board of Advisors, ensuring separate oversight and avoiding potential conflicts of interest.
How will property taxes, insurance and maintenance be handled?
A: Property taxes, insurance and maintenance expenses will be covered by the rent collected from members residing in the chapter house. The Beta Chi Housing Board will be responsible for paying the bank loan, property taxes, and insurance premium, and maintaining the property, ensuring the Chapter house remains in good condition and adheres to local regulations. This may include hiring a local contractor for repairs.
Will my donation be returned if the target house is not purchased?
A: If we are unable to raise sufficient funds to close on the 6399 Pelican Lane property, donors have the option of requesting their funds returned OR allow the dollars raised to be placed in an interest-generating account and used in the future for a different targeted property purchase. The Beta Chi Board of Advisors will maintain oversight of these funds. Housing status will be updated at each Board meeting and included in emailed Alumni Newsletter.
Membership Concerns
What happens if membership fails or falls below a minimum threshold?
Over the last 20 years (2006 – 2025), Beta Chi has averaged 51.4 active members per year. Toss out the COVID years, and the average increases to 57.8 members. Beta Chi has consistently been a strong, successful chapter since rechartering two decades ago.
- 1970 – 1979: average chapter size: 46.6 (high 88 in 1970; low 26 in 1975)
- 1980 – 1989: average chapter size: 47.3 (high 69 in 1988, low 27 in 1982)
Dormant 1992 – 2005
- 2006 – 2009: average chapter size: 65.0 (high 69 in 2008, low 56 in 2006)
- 2010 – 2019: average chapter size: 55.3 (high 71 in 2011, low 34 in 2019)
A: While membership could fall below the minimum 14 required, we have a strong belief the current undergrad group will continue to grow and recruit like-minded, goal-oriented members. As of Spring 2025, the Chapter has 71 members.
- Financial Reserves: The reserve fund will be used to cover expenses during periods of low occupancy.
- Recruitment Efforts: Increased efforts will be made to recruit new members and maintain active membership levels in advance of any forecasted membership shortfalls.
- Alumni fund-raising to fill the short-term gap not covered by financial reserves.
- Rental flexibility: The house could be rented out to non-Tekes using one-year contracts, as needed, allowing the Beta Chi Housing Board to make the required loan, property taxes and insurance premium payments. Once chapter membership returns to required levels, the house would return to Chapter house status.
How will the fraternity ensure that membership remains strong?
A: The fraternity will implement various strategies to ensure membership remains strong, including:
- Active Recruitment: Engaging in ongoing recruitment campaigns to attract new members.
- Member Engagement: Providing a welcoming and supportive environment to retain current members.
- Alumni Involvement: Encouraging alumni to participate in events and activities, fostering a sense of community and continuity.
Additional Questions
Who can contribute to this project?
A: Fraternity alumni, current members, and any individuals or organizations interested in supporting our cause can contribute to the fundraising project.
Do I have any liability as a donor?
A: No. Because you are not an investor or owner of the property, your donation carries no personal liability.
Is my donation tax deductible?
A: No. The BX Housing Corporation, LLC does not meet Williamson County requirements to have a tax-exempt status.
Can I earmark my donation for specific uses?
A: Initially, all donations will fund the loan downpayment needed for the targeted property (6399 Pelican Lane, Carbondale, IL) and improvements needed to convert the property to house 16 undergraduates.
Will there be recognition for donors?
A: Yes, donors will be recognized for their contributions. Recognition can take various forms, including naming opportunities for rooms within the chapter house, plaques, and acknowledgment in fraternity publications and events.
How can I make a donation?
A: Donations can be made through our secure online platform, by mail, or in person at fraternity events. Detailed instructions on how to donate can be found on our website.
Who can I contact for more information?
For more information or to discuss live, please contact any of our fundraising coordinators:
