Educational Area Grant Program Agreement
If you want to learn more about established an Educational Area Grant Program (EAGP) Fund to support a major housing project or want more information about fundraising and Foundation support for Chapter House Corporations, contact Hallee Winnie, Executive Director.
What is an EAGP?
An Educational Area Grant Program (EAGP) Fund a program allowing the Foundation to support educational qualifying portions of a capital housing campaign or project, especially those projects of $250,000 or greater, by accepting tax-deductible contributions to the Foundation from alumnae and friends in support of the campaign or project established by a Chapter House Corporation (CHC) or the Fraternity House Corporation (FHC).
An EAGP agreement must be established to outline the partnership between Pi Beta Phi Foundation and the CHC or FHC undertaking the significant renovation or building project. An EAGP can be an effective and useful tool to raise charitable gifts to support the housing campaign or project.
Why would we want to do an EAGP?
Before the Educational Area Grant Program was developed, the only means of soliciting charitable dollars for a chapter house’s capital project was through partnership with the university in limited circumstances. 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.
Why don't I just make a gift directly to my CHC?
Donations directly to CHC or FHC are critical to support the non-qualified portions of a major project. Due to current IRS regulations and tax law, those donations directly to the CHC or FHC are not tax-deductible. Particularly for major gifts, tax considerations may be important. An EAGP allows a donor to make a gift to their chapter and realize the tax benefits.
Will we still need fundraising counsel?
Members of the Foundation staff would be happy to talk with you about your specific project and needs and make recommendations about best practices for fundraising. 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 several steps to both establishing an EAGP and use of the fund. There are the overall steps:
- Complete Fraternity House Corporation fundraising approval process.
- Gather necessary documentation, which includes detailed architectural plans, a budget, scope of the project, campaign goal and planned fundraising activities.
- Submit necessary documentation for the Foundation to obtain a qualified legal opinion on the educational percentage of the project.
- Pi Beta Phi Foundation Board of Trustees review for acceptance. Once approved, you will sign an EAGP agreement with the Foundation that outlines accounting requirements, fee structure, donation processes, grant process and reporting requirements.
- Submit qualified expenses for reimbursement.
What does the EAGP agreement say?
The agreement outlines the legal limitations of the EAGP partnership. 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/FHC 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 administrative fee structure in place to be flexible in meeting the needs of your project. Final EAGP costs are detailed and mutually agreed upon in the finished EAGP agreement that is executed. Administrative fees for EAGP Funds will be assessed upon receipt of gifts or pledge fulfillments:
- 4% baseline fee for EAGP program administration of funds, recurring credit card gifts, pledge administration and gift acknowledgement processing.
- It is possible that the Foundation may be able to provide campaign counsel and advice, including direct mail and print materials development depending on the scope of your project for an additional fee.
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?
n 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 or FHC and Pi Beta Phi Foundation can be an effective and useful tool to raise charitable gifts to support a major chapter 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 Hallee Winnie, Executive Director