Massachusetts Eta of Phi Kappa Theta Alumni Corporation

Automatic Donations Program

The Need

The active brothers of Massachusetts Eta chapter of Phi Kappa Theta have enjoyed many years living under a common roof.  Despite recent MIT rule changes, the majority of active brothers retain the privilege of building bonds together in the house at 229 Commonwealth Ave.  Though the brotherhood is constantly renewed with new pledges, the physical facility ages and requires continuous upkeep and maintenance.

            One responsibility of the Alumni Corporation is to provide for upkeep and maintenance and to raise funds entailed by such activities.  Currently, the rent charged to active brothers living in the house comprises over 90% of the Alumni Corporation’s annual revenue.  For many years, this revenue has covered annual expenses of the Corporation, such as property tax and minor repairs to the house, but has left little money to save for larger repairs, upkeep expenses, and the replacement of older equipment.

            Lacking funds for repairs and improvements, the Corporation adjusted their budget a few years ago to reserve additional monies for these purposes.  But during the last two years, the funds intended for long-term savings had to be spent on urgent projects like the boiler replacement and the oil tank removal. Though ‘work weeks’ usually make light improvements (e.g., interior painting, minor plumbing), the facility’s structural elements and large equipment (e.g., roof, electrical wiring, windows) have been neglected.  Many elements are nearing or have exceeded their design lifetimes.

            Traditionally, Corporation expense increases were covered by proportional increases in the rent charged to the active brothers.  Though undergraduate dues are currently competitive with other houses, the chapter has been forced to make significant cuts in its own budget and programs to account for rent increases.

If the Corporation continues to gather upkeep and maintenance funds solely from rent increases, the financial burden on active brothers will become unmanageable, preventing some brothers from meeting their financial obligations to the chapter and greatly impairing pledge recruitment.  While it is a brother’s duty to pay his chapter dues, these dues should not be so prohibitively expensive as to deny membership to worthy brothers nor threaten the future of the chapter. Where, then, should the Alumni Corporation look for a flow of continuous upkeep funds?

The Vision

            The funds required for continual upkeep and maintenance of the facility should come from the generosity of the chapter’s alumni brothers. Active brothers will continue to pay dues and cover their own budget and a portion of the rent, but the responsibility to address the long-term needs of the chapter is held by the alumni. Alumni from Massachusetts Eta enjoy the fruit of the brotherhood relationships planted while in the active chapter and through our fraternal network.  Alumni typically have attained a greater measure of financial stability and have means to give back to their chapter. 

            Less than 6% of the Alumni Corporation’s 2001-02 revenues came from direct alumni donations.  On paper, there are over 400 Mass Eta alumni brothers.  If 2001-02 donations were spread across all existing alumni, donations average under $5 per brother per year.  Every year, some individual brothers make generous one-time donations; hundreds or even thousands of dollars.  However, these isolated, lumped donations have proven insufficient for the upkeep of the facility, but neither should they be expected to be sufficient. As alumni brothers, we continuously benefit from our bonds; should we not also give back constantly to the brotherhood?  If the burden of maintenance and upkeep of the house is spread among the collective alumni brothers, each brother’s load is light.  Alternatively, if that burden must be borne by a few alumni brothers or by the undergraduates, regardless of the financial outcome, we have failed in our collective fraternal duty.

The Automatic Donations Program

            An automatic donations program was first proposed by Yoke Tanaka on the alumni mailing list.  He noted that by accepting donations only by written check, the Alumni Corporation made donating an inconvenience for most alumni.  In addition, one-time donations tend to be larger, putting more of a dent in personal finances.  He suggested that the Alumni Corporation accepted donations via credit card and also set up recurring billing on a monthly basis.  Thus, alumni could make relatively small donations on a regular basis without the hassle of check-writing and envelope stuffing. With this program, alumni can easily make more significant donations without putting unusual one-time burdens on their budgets.

For example, an alumnus could sign up to donate $15 per month.  Every month, PKT Alumni Corporation would charge his credit card account for $15 and immediately receive the funds.  The credit card issuer would collect the $15 through the alumnus’ normal billing statements.  Instead of a one-time $180 check per year (which he may forget or procrastinate), this program allows us to support the house for what it costs to buy lunch for a hungry, active brother.

The Plea!

            The Alumni Corporation hopes that this program will begin enabling our alumni to more easily provide for the lasting future of our chapter at MIT.  The chapter thanks our alumni donors for their generosity with previous one-time or annual donations. We entreat you all to consider this new channel as an opportunity to make your giving more regular, convenient, and significant.