Introduction to Fraternity Finances

One of the biggest misconceptions is that all financial matters are the responsibility of the Treasurer. One of the most common reasons that a group fails is poor financial management – too many members not paying their bills, expenditures in excess of income, deterioration of physical facilities, cancellation of events, etc. Every member has the right to know how his money is being spent, and should insist that it is spent wisely.

The Treasurer is the Chief Financial Officer of the Chapter, but he is aided by the financial committee, recruitment committee, fraternal activities committee, social committee, community service/philanthropy committee, and all other officers and chairs. Without the help of these individuals it is impossible to ask the Treasurer to budget, collect, and properly distribute funds.

Use the resource below to build a budget, establish financial stability, and properly report spending/income. This all sounds very daunting, but once you create the fundamentals the Chapter will begin to run like a well-oiled machine. Everything can then be passed down to the next Treasurer in charge. The biggest thing to remember is that Brotherhood begins when the bills are paid.

Fee Structure 2018 – 2019

To pay any National dues, please click here.

Postulant Fee – $100 per man

A $100 one-time per person non-refundable fee is assessed to the Chapter within 72 hours of individuals accepting  their bid. This $100 provides the Postulant with a Postulant Pin, Exoteric Manual, and Liability Insurance through MAPP (Member Accident Protection Program).

Initiation Fee – $230 per man

The Initiation Fee is a one-time fee that is due PRIOR to your Initiation into Alpha Chi Rho National Fraternity. Upon payment, you will receive your engraved certificate and membership card, Brothers badge, and a lifetime subscription to the Fraternity’s publication, “The Garnet and White”. As a member you are also covered by MAPP (Member Accident Protection Plan) during your undergraduate days at school. By fulfilling your financial obligations you help provide regional events and Crow Coach mentoring.

Chapter Assessment – $175 per man

The Chapter Assessment is an annual fee each Chapter pays to support the National Fraternity ensuring dependable access to Chapter services and resources. If paid in full prior to September 15, a $250 discount is applied.

Liability Insurance

The annual Liability Insurance is assessed on the roster submitted by the Chapter leadership. An insurance discount of $250 is available if you pay the premium in full on or before September 15. If you cannot pay this amount in full, you may pay half of the premium to “Holmes Murphy” and request a financing agreement (800.736.4327) to borrow the second half of the premium. If the finance agreement is executed properly, the balance is due in full by February 15. The $250 discount is not available if you finance.

Per-Capita Fee – $100 per man each semester

Every member who was invoiced after August 1, 2016 will be assessed a $100 Per Capita Fee per semester.  This Per Capita Fee supports the Crow Coach program which provides growth and financial coaching to individual Chapters, recruitment assets through the “Recruitment-In-A-Box”, and new resources for Chapters and individual members such as No2Hazing.

Budget FAQs

One of the most important tools in the management of expenses is the Chapter’s budget. A budget is an intelligent estimate of income and an expense plan for the spending of that estimated income.

Why is a budget important?

A budget must be reported. Without putting it on paper, it is just a dream. Failing to plan is planning to fail. You have to plan, project, and adjust your revenue and expenses in order to be successful.

2018-2019 Sample Budget

We have updated the sample budget to fit the fee structure for 2018-2019. The fixed expenses (AXP HQ Fees) are set amounts from the fee structure. The variable expenses (local Chapter expenses) are not set amounts and can be adjusted to fit your Chapter operations. With the variable expenses, you may add rows and remove this lower section of the sample budget. Keep in mind this is a basic budget that does not include items such as housing. The purpose of this tool is to assist your Chapter in the budgeting process.

Below are some notes to keep in mind for each budget when using this tool.

It is important to note that in its original form, the sample budget shows the Chapter paying the Chapter Assessment and Liability Insurance without the $250 discount applied.

Fall Semester Budget – To determine your fixed expenses for the fall semester, you will simply input the number of men returning in the fall as well as divide out how you would like to pay the Liability Insurance, Chapter Assessment, and Per-Capita Fees. From there, all your fixed expenses for the fall should calculate accordingly and you will only need to adjust the variable expenses as needed.

Spring Semester Budget – To determine your fixed expenses for the spring semester, you will need to input the number of men returning in the spring. When entering the Per-Capita Fee numbers, they should mirror what you entered in the fall semester plus the fall Postulants. If the Chapter is not paying all of the Chapter Assessment, Liability Insurance, and Per-Capita Fees in the fall, please make sure to update the spring budget formulas/amounts for Chapter Assessment, Liability Insurance, and Per-Capita Fees.

Who develops and approves the budget?

The budget is compiled by the Treasurer with the input of officers and the Chapter or Colony finance committee (if applicable).

Once ready, the Chapter’s Advisory Board  reviews, helps adjust, and approves the budget.

Then the budget goes to the Chapter to vote with acceptance of budget at 51%. The budget should not be changed without the knowledge of the Chapter Advisory Board. It is important to note that nobody can individually chane expense allocations. Doing so is called misappropriation.

When is a budget written, reviewed, and evaluated?

Here is a sample timeline for effective budget management:

March 1 – Treasurer puts together initial budget

March 15 – Budget reviewed by officers and committees

April 15 – Budget reviewed and approved by Chapter Advisory Board

May 1 – Budget approved by Chapter/Colony

First meeting in the fall – Re-Review budget with Chapter/Colony

January 15 – Chapter Advisory Board audit

The Treasurer should track, review, and balance monthly.

How can we improve our budget performance?

Contact your Crow Coach or National Office for specific questions on your budget and how to improve Chapter relations.