When it comes to finances, a chapter truly is a business. If the chapter utilizes appropriate business procedures in its financial operations, it will most likely prosper, for many similarities exist between a chapter and a private business.
Every business has its investors; the chapter’s investors are its members. From the day a member joins, he invests funds in the chapter. The chapter leaders are charged to manage this investment to the best of their ability.
This page is designed to help simplify chapter finances for treasurers and alumnus finance advisors to answer questions or provide resources that may help guide your chapter’s finances.
2020-21 Assessment ScheduleFall:
- Chapter size < 60: $3,000
- Chapter size 60-90: $3,500
- Chapter size 90+: $4,000
- *Housed chapters: Additional $1,000
- $1,000 credit if chapter elects to go substance-free
- $1,500 + $28.75/initiate
- This is only initiates on the roster that were initiated in a previous semester, this does not include new members
- 290/new initiate*
*this fee is assessed to the chapter, Pi Kappa Alpha does not assess individual members
- Chapter will be billed the same amount as the fall
- $1,500 + $28.75/initiate
- $290/new initiate*
Internal Revenue Service (IRS)
The tax-filing deadline for chapters is November 15th every year. You can file your taxes through OmegaFi, File990.org, or a local accountant. Chapters who don’t file taxes for three consecutive years will have their tax-exempt status revoked by the IRS. You may contact email@example.com for assistance in regaining your chapter’s tax-exempt status.
OmegaFi is the preferred billing partner of Pi Kappa Alpha. Fraternity and sorority chapters who use OmegaFi to bill and collect dues have an average collections rate of 97%, while chapters who collect locally average 66%. OmegaFi does more than give the chapter a platform from which to bill and collect dues. OmegaFi also has many resources available to chapters to help improve overall financial operations. These resources include items such as OmegaFi Swipe (similar to the Apple Square), the OmegaFi Budget Tool, dedicated chapter service representatives year-round, local check printing, payroll, vendor pay, tax filing, and many more. Contact your chapter service representative to learn more.
“What does it take to be a chapter treasurer?”
As the treasurer of your chapter, you serve in a similar position as the chief financial officer of a business. You sign off on all expenses, and, in turn, you will be held responsible for the financial security of the chapter. Your decisions, your communication, your organizational skills, and your integrity will play a big part in defining where the chapter will go in the future.
“How do I make a budget?”
To build a thorough budget, you might try working backwards. To work backwards, you want to first determine your set costs and administrative expenses, then calculate how much you think you want to spend as a chapter, and then set chapter dues after that. Many chapters make the mistake of setting dues at an “affordable” number, but then run into issues when their expenses are greater than what they can handle. The OmegaFi Budget Tool on Vault is a great starting point when building your chapter’s semesterly budget.
“I’m having trouble getting my chapter to pay dues, how can I change that?”
There are numerous collection tips, tricks, and strategies that will help you collect outstanding dues. First and foremost, be transparent. If the chapter membership doesn’t know where their money is going or why, they are going to be more reluctant to pay. If you’re being transparent and still having issues, here are some more ideas you can try:
- Social & athletic suspension
- Report them to the International Fraternity through the Delinquent Account Report Form
- Identify delinquent accounts during your report at a chapter meeting
- Payment plans
- Incentives to pay in full at the beginning of the semester
“What resources are available to help me run the chapter’s finances?”
Some items have already been mentioned, but there is a plethora of resources available in the myPIKE Resource Center or through OmegaFi. This includes, but is not limited to, sample chapter financial policies, sample payment plan form, OmegaFi Budget Tool, delinquent account report form, and more. Click the button at the top right of this page to go to the myPIKE Resource Center.
“Why do we have to pay assessments? What do they go toward?”
Liability Protection Program (LPP) Assessment: This fee is assessed to each participant of the LPP, which protects participants from general tort liability regarding fraternal activities subject to exclusions and the terms of any insurance policies. The LPP assessment also funds development of health and safety programs, education at PIKE University events, and chapter risk awareness recognition and awards.
Chapter/Colony Assessment & Per-Initiate Fee: These assessments help fund chapter service and resource programs including annual consultant visits, educational material for members, officers, and chapter programming, quarterly publication of the Shield & Diamond magazine, and additional assistance as requested by chapters. In addition, a portion of the Chapter Assessment helps subsidize costs for attendance and participation in PIKE University educational programs and awards. This helps fund the continued advancement and improvement of PIKE University. It helps fund chapter service and resource programs and helps in providing a more well-rounded approach to assisting and improving chapters.
One-time Membership Fee: This is charged to the chapter for each new initiate and is due five days prior to initiation. This fee pays for the administrative costs of initiation, membership certificate, membership card, and a copy of The Oak for each new member.
There is no new member fee charged by the Fraternity; however, chapters are encouraged to charge a new member fee in addition to an initiation fee.