Tips for CHC Success

CHCs are incorporated as separate legal entities within the state or province where the chapter is located. Often, bylaws must be submitted annually to maintain the corporation. Board members should review CHC bylaws on an ongoing basis and revise as needed, seeking legal counsel for assistance in major revisions to make sure the bylaws abide by all federal, state and local corporate laws. Before adopting new bylaws, the CHC must submit changes to FHC for review. A copy of sample bylaws and articles of incorporation templates can be found in the Resource Library.

The CHC Annual Report is due to FHC each year by February 1. For CHCs owning property, the CHC Facility Report is due to FHC each year on November 1. Both reports are submitted through BetaBase and help Pi Beta Phi support housing goals.

Any time there is a change in leadership on CHC, the CHC's roster should be updated in BetaBase to ensure officers are getting up-to-date communication from Headquarters. CHCs should ensure all contact information for individual members is up to date, checking at least twice a year.

At some point, the unexpected will likely occur. It is recommended that every CHC develop a long-range plan of anticipated work that will need to be done during the next five to 10 years and update it annually. A long-range planning worksheet is available in the Resource Library to help. For CHCs owning property, it is strongly recommended that a property assessment is performed every five years. The assessment will identify potential problems that could result in insurance losses, help the CHC plan for capital expenditures and control insurance costs for all Pi Beta Phi chapters. FHC recommends CSL Management as the preferred vendor for these assessments.
 

All U.S. CHCs qualify as Section 501(c)(7) organizations by the Internal Revenue Code, allowing the corporation to accumulate funds for future anticipated expenses and to use the set-aside provision to shelter unrelated business income and non-member income. Due to the complexity of the IRS 501(c)(7) regulations, FHC has created tax return templates to help guide your CHC, and/or assist your tax advisor, in the preparation of the Form 990, 990-EZ, 990-T, and supporting schedules. These tax return templates can be found in the Resource Library. 

Maintaining open communication at all times among the chapter, AAC and CHC is essential. Regular meetings help ensure all teams are aligned. For all chapters, an Annual Chapter/CHC Agreement helps outline important responsibilities such as amount of the rent the chapter will pay the CHC, the amount of the house fund fees and opening and closing dates for the chapter facility. Agreements should be reviewed and signed each year. Several sample agreements are available in the Resource Library.

Rent helps the CHC keep the chapter facility competitive with other campus housing options. Rent should be adequate to meet CHC expenses—including salaries for CHC employees, repair & maintenance, cleaning, landscaping, inspections & costs for managing the corporation—and allow an annual reserve to be maintained for repairs and capital purchases. FHC recommends a 3%–5% rent increase each year to prevent a significant jump in any year. Even when there are no physical facilities, “rent” should be collected to cover CHC expenses and maintain a reserve for unexpected expenses. A budget template can be found in the Resource Library.  

Additionally, all CHCs should be charging a House Fund Fee which is a one-time fee per newly initiated member. This fee is due to the CHC within 30 days of initiation. House Fund Fees should go to the CHCs reserves and should not be used for operational costs. This fee is required to be collected per the Constitution & Statutes regardless of facility type.

Managing a chapter facility is a unique volunteer experience and requires unique volunteer skills. The decisions made by the CHC can have tremendous impact on the sustainability of the chapter, so continually working to refine related skills is important for all members of the CHC. Any time there is a change in CHC leadership, new volunteers are expected to complete CHC volunteer onboarding with an FHC staff member.

The needs of today's college students change rapidly. What seniors expected when they were freshmen may be completely different from what current freshmen need. Regular meetings with Chapter Leadership and AAC can help CHC better understand the specific needs and desires of the members. Asking for feedback at the end of each semester and encouraging the chapter to submit a wish list each spring is very helpful.

Pi Beta Phi facility decisions must always be influenced by what is happening in the local campus community. Current housing options, such as other National Panhellenic Conference organization facilities, campus residence halls and near-campus apartments, can be good points of reference to ensure Pi Phi’s facilities are competitive. In addition to residential facilities, university long-range plans related to campus goals and initiatives can present insights helpful to CHC planning.

Housing matters to Pi Beta Phi, and the Fraternity has invested considerable resources into ensuring CHCs have access to the tools they need to be successful. The most valuable of these resources are the people who can support and advise the CHC. Strong CHCs are in regular conversation with Pi Beta Phi’s FHC professionals at Headquarters and review the CHC resources regularly which are found in the Resource Library.