In order to comply with all applicable IRS requirements to allow the Chi Psi Educational Trust to make a grant to the Corporation of Alpha Zeta Delta of Chi Psi (the “Corporation”) to use toward the purchase of the Delta Zeta sorority house, our lawyers have recently informed us that it is necessary for our Articles of Incorporation to be amended.
In order to formally amend the Corporation’s Articles of Incorporation, a Special Meeting will be held at the following time and place:
Date: February 20, 2019
Time: 6:00 p.m.
Location: NIU Naperville Conference Center, 1120 E. Diehl Rd., Room 250, Naperville, IL 60563
Purpose: To amend the Articles of Incorporation in order to satisfy IRS requirements
Summary of Amendments:
In order to qualify as a Code Sec. 501(c)(7) organization, an organization must be a club organized exclusively for recreational, pleasure or similar purposes. Thus, the IRS looks for that exclusivity and limiting language in the purpose provisions in the organization’s Articles of Incorporation. Currently, Article 5 of the Articles of Incorporation states that the purpose is “To constitute a domestic fraternal association, the net earnings which are devoted exclusively to educational and fraternal purposes, which does not provide for the payment of life, sick, accident, or other benefits to its members or their dependents.” This provision is insufficient to meet the IRS requirements for an organization exempt under section 501(c)(7), so our purpose provision must be amended.
Furthermore, a provision requiring that that the Corporation’s net assets be distributed in accordance with our exempt purposes must be included in the Articles of Incorporation. The existing Articles of Incorporation and bylaws are silent on dissolution. Thus, the Articles will need to be amended to add in a dissolution provision that is sufficient under the IRS guidelines for an organization exempt under Section 501(c)(7).
Our current Articles of Incorporation can be found here, and our Proposed Articles of Amendment can be found here. If you have paid dues this year, you are entitled to attend the Special Meeting and vote on the resolution to adopt the Proposed Articles of Amendment.
If you have questions or would like to vote by proxy, please contact Matthew Hess at [email protected].