Create an Educational Area Grant Program Agreement
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What is an EAGP?
An Educational Area Grant Program (EAGP) agreement is a mechanism allowing Pi Beta Phi Foundation to be the conduit for charitable gifts in support of a Chapter House Corporation (CHC) capital campaign or project.
Why would we want to do an EAGP?
Before the EAGP concept was developed, the only means of soliciting charitable dollars for a chapter house’s capital project was to partner with and channel charitable gifts through the university. EAGP provides an alternative for chapters where university partnership is not an option or where the chapter desires to retain complete control over all aspects of their capital campaign project.
Will we still need fundraising counsel?
If your plan included fundraising counsel before an EAGP agreement, you will still need fundraising counsel with an EAGP agreement.
Is EAGP a complicated process?
There are a number of steps, but basically they follow this order:
- Gather necessary documentation, which includes detailed architectural plans, a budget and a letter of support from the university;
- Get a qualified opinion on the educational percentage of the project;
- Submit to Pi Beta Phi Foundation Board of Trustees for acceptance;
- Sign an EAGP agreement with the Foundation;
- Submit expenses for reimbursement.
What does the EAGP agreement say?
Basically the agreement lays out the legal limitations of the EAGP partnership. In order to meet our legal obligations, the Foundation must exercise due diligence to ensure the improvements to educational areas funded by tax-deductible donations does not change over time. The CHC and the chapter have an ongoing responsibility to ensure and certify the use has remained educational. Additionally, due to the legal requirement to segregate funds raised for charitable purposes, there are accounting requirements for all three entities that must be met.
Who signs the agreement?
Representatives of the Foundation, the Chapter House Corporation and the chapter will need to sign the EAGP agreement. Each entity has responsibilities to the other that are clearly outlined in the agreement.
How much does this cost?
The Foundation has a tiered cost structure in place in order to be flexible in meeting the needs of your project:
- 2% baseline fee for EAGP program administration of funds and gift acknowledgement processing (no recurring credit card or pledge payment support);
- (Optional) 2% additional fee to administer recurring credit card gifts and pledge administration;
- (Optional) 4% minimum additional fee to provide campaign counsel and advice, including direct mail and print materials development.
Fees are charged against gifts and pledges received. Final EAGP costs are detailed and mutually agreed upon in the finished EAGP agreement that is executed.
What if we’re not doing a full-fledged capital project and campaign? Can we still go through the Foundation to be able to accept charitable gifts?
In the absence of a specific capital project and campaign, a Chapter House Improvement Program Fund is the better option.
An Educational Area Grant Program agreement executed between your CHC and Pi Beta Phi Foundation can be an effective and useful tool to raise charitable gifts to support your housing project. We encourage a full and robust discussion of all the considerations and are happy to answer any questions or concerns.
If you are interested in establishing an EAGP, please contact Jenny Miller Pratt, Development Director.