Phi Kappa Psi Foundation: About The Foundation FAQs

Frequently Asked Questions

About The Foundation FAQs

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Q: Is the Phi Kappa Psi Foundation different from the Fraternity?
A: Yes. The Phi Kappa Psi Foundation is a separate not-for-profit corporation from the Fraternity. The Foundation has a different mission, separate staff and is run by a separate group of elected officers. The Foundation provides grants to the Fraternity for educational programming, such as the Presidents Leadership Academy, Woodrow Wilson Leadership School, GreekLifeEDU, the Educational Chapter Consultant Program and Leadership Experience.
The Fraternity is a 501(c)(7) social, fraternal organization and the Foundation is a 501(c)(3) public educational foundation. Both are not-for-profit and exempt from many taxes. However, gifts to the Phi Kappa Psi Foundation are tax-deductible to donors and gifts to the Fraternity are not. In the context of a college or university, the Fraternity is similar to a college or university and the Foundation is like the college or university foundation. They may work together, but they are two different legal entities. One is in the business of education and the other raises money to provide scholarships and grants to support education.
Q: Are gifts to the Foundation deductible? What about to the Fraternity?
A: Gifts to the Phi Psi Foundation and to any sub-account (such as Chapter Scholarship Funds, Campaign Funds or Educational Operating Funds) within the Foundation are deductible to the full extent allowed by the law. The IRS has some limitations on deductions, depending upon one’s annual income, but the Foundation provides the same deduction as churches, the United Way, the Salvation Army, a college or university, etc. No one can give any more of a deduction than the Foundation. Gifts to the Phi Kappa Psi Fraternity are not deductible.
Q: Are gifts to a chapter or house corporation deductible?
A: All chapters of Phi Kappa Psi share the Fraternity’s status as 501(c)(7) membership organizations. They are not-for-profit and may be exempt from some taxes in their state, but cannot provide deductions to donors. House corporations are incorporated in each state and are independent businesses from the chapter or Fraternity Headquarters. They are normally incorporated as 501(c)(7) businesses which exist for the purpose of holding property on behalf of a chapter. They are not-for-profit and may be exempt from some taxes, but cannot provide a deduction to contributors.
Q: What advantages are there to being a Foundation?
A: The primary advantage is that the Foundation can provide a tax deduction to donors. Such a deduction often provides an incentive for some supporters to give a larger gift. Another advantage is that the Foundation does not pay taxes on its income generated from gifts or investments.
Q: Are there disadvantages to being a Foundation?
A: As the Foundation's income is exempt from taxes, the organization is limited by the IRS in how funds may be used. The restrictions are the same as any other charitable organization; deductions are provided to donors, but the monies can only be used for qualified exempt purposes.
Q: How are gifts/donations invested?
A: The Foundation's investment objective is to produce a reasonable annual income, coupled with capital appreciation, while conservatively maintaining safety. To achieve these results, the Foundation is managed as a widely diversified, balanced fund.
Q: What is a "directed/designated" gift?
A: A directed contribution is a gift accompanied by a request from the donor to earmark the gift for a specific use. It is the policy of the Foundation to honor requests from donors whenever possible; however, the ultimate determination of any gift's use rests with the Foundation Trustees.
Five percent of each directed or designated contribution is allocated for the Foundation's unrestricted use and ten percent of the earnings on directed gifts are also allocated for unrestricted purposes. For example, if a donor makes a $100 gift to his chapter's scholarship fund, $95 is added to the fund while $5 goes for unrestricted use.
Q: What is the Chapter Scholarship Fund (CSF) program?
A: Chapter Scholarship Funds are accounts within the Phi Kappa Psi Foundation which are set up to receive gifts and designate them for the benefit of specific chapters.
Q: How do contributions help specific chapters and their members?
A: Directed/designated contributions assist chapters in the following ways:
- Strengthen the chapter’s continuity and stability through the guidance of the Fraternity's Consultants
- Provide opportunities for members of the chapter to be nationally recognized and rewarded for outstanding leadership capabilities or academic achievement
- Provide the entire chapter with the opportunity for specially-designed leadership training by the Fraternity’s Consultants and the Director of Leadership Development
- Enable an aspiring leader to attend the Woodrow Wilson Leadership School or the Presidents Leadership Academy
- The direct, measurable result of your gift will be to provide expanded opportunities to members of Phi Kappa Psi, now and in the future
Q: What effect will a contribution have on the Fraternity at large?
A: Phi Kappa Psi truly provides a unique educational experience. Neither the Fraternity nor the Foundation are in competition with the institutions of higher learning that host Phi Psi chapters. The benefits derived from membership in the Fraternity are distinct from those derived from the academic curricula of colleges and universities. Our efforts are directed at the way Phi Psi undergraduates react to their environment, and the way they conduct themselves in their personal lives and as part of a group.
A good Phi Psi experience will complement an undergraduate's academic education for the rest of his life. The results will reflect favorably on his Fraternity, his school and on himself. And remember...when you make a gift to a chapter specific fund, you are really making two gifts: you are directly supporting your chapter and, indirectly, your alma mater – helping men to attend and stay in school.

The Trustees of the Foundation ask each Phi Psi alumnus to weigh the program initiatives of the Fraternity and the Foundation to realize the unique opportunity they provide to the alumni who support them and to the undergraduates who benefit from them.
Q: How much should I give and how should I give it?
A: This is an individual decision for each Phi Psi. The Foundation can assist donors in identifying an appropriate gift that reflects their level of financial commitment or their interest in a particular program. Some donors wish to honor or memorialize relatives or friends through a named scholarship, underwrite a special leadership program or endow a campus award.
One's decision is usually based on a number of personal and particular considerations. But, in the end, the Foundation hopes that your own sense of the value of membership in Phi Kappa Psi and the ability to have a positive impact on the lives of young men will compel you to make the most generous gift possible.
Q: What are corporate matches?
A: Many corporations will match the gifts that their employees make to charitable organizations. The process is easy: simply send your contribution to the Foundation and notify your employer of your gift. Many times, specific forms may need to be completed. The Foundation staff is pleased to help you in completing such forms. Most matching gift programs are operated through employer's human relations office or office of community relations.
Q: How can members help raise money for their chapter?
A: One of the easiest ways for members of a chapter to raise funds is simply by keeping alumni connected and engaged in the Fraternity. Send bi-monthly or quarterly newsletters to alumni in order to keep them informed of how the chapter is doing and invite them to social events. Hosting social or philanthropic events is a great way to introduce alumni to fellow brothers and allow others to reconnect. For these events, charging a registration fee and then donating all or a portion of the money raised to your Chapter Scholarship Fund (CSF) allows the funds to be properly invested and managed so they can benefit the chapter far into the future.
Organizing fundraising events around Founder’s Day is another fantastic opportunity to connect lost members. Regardless of the event, inviting undergraduates is encouraged as they can interact with alumni and offer insights on the chapter’s current operations.

Chapter members or alumni volunteers can further assist in the fundraising/stewardship process by sending thank you notes to individuals who make gifts to their CSF. The Foundation does send a thank you note, so the donor knows not only that their gift was received, but that it was directed to the correct fund, however a personalized note from a fellow chapter or pledge brother often is most appreciated.
Q: How does the Foundation help raise money for my chapter?
A: One of the most significant ways the Foundation assists is in simply providing a professionally managed reciprocal for the funds raised. Additionally, the Foundation oversees the accounting, reporting and administration duties of receiving and properly recording gifts. Letters of acknowledgement and tax receipts are provided to all donors .The staff manages long-term pledge gifts during chapter campaigns so the house corporations can concentrate on raising the necessary funds.

The Phi Psi Foundation also can assists housing corporations in capital campaigns by providing guidance in evaluating the “readiness” and ability of the alumni to raise funds, helping to establish a structure for the campaign, assisting in training volunteers who will make calls and run the campaign, and often can provide literature and materials to help make the campaign a success.

With chapters, the Foundation often can help with ideas and sometimes with resources as well. Limited funds are available and it isn’t appropriate for the Foundation to use funds meant to help all chapters for the benefit of one or a few. However, the Foundation has worked with several chapters to do special mailings, organize annual phone campaigns, help set up special Homecoming, Founders Day or chapter anniversary events, etc. The staff of the Foundation can also provide ideas on how best to use Chapter Scholarship Fund awards and often can have a representative at special events where alumni donors and prospects will be gathered.
Q: How does the Foundation handle gifts from alumni?
A: All gifts which come to the Foundation result in an acknowledgement letter, a certificate (when specific giving levels are reached) and a tax receipt at the end of the year (usually sent out at the end of January). Online donors receive a thank you receipt once their gift is processed. Such donors also receive the above as well. Donors who wish to make gifts to a specific chapter fund should include that fund on the note section of their check or include a note with their contribution. If there’s no indication of a specific use, the gift will be designated to benefit the Alumni Support Program.
Donors who send in signed pledge cards, often used in chapter campaigns, are entered into the Foundation’s database in order to appropriately manage that donor's intent. Donors receive an initial thank you for their pledge and periodic reminders when it’s time for them to make a payment. Traditionally, a business return envelope is included to make remittance as convenient as possible. If the house corporation is in campaign mode, regular reports are provided to the leadership in order to keep them apprised of all contribution activity.
Q: What happens once donations are received by the Foundation?
A: All contributions are invested as part of a general portfolio – somewhat like a pooled income fund – where each account shares in the gains and losses according to their percentage of the total pool.
Q: What is the Foundation's fiscal year?
A: The Foundation’s fiscal year runs from January 1 through December 31; the same as a calendar year.