The Zeta Xi Multipurpose Housing Fund (MHF) is a unique fund established for the Zeta Xi House Corporation with the Pi Kappa Alpha Foundation.

  • Contributions are 100% tax deductible, in accordance with IRS regulations, and
  • Qualify for matching corporate gifts, see if your company provides matching gifts. This is a great way to double your impact to Zeta Xi!

Coupled with the Educational Facilities Grant (EFG), donations to the fund can be used for a variety of purposes while still meeting the educational requirements to qualify as tax deductible.

Educational Facilities Grant

An Educational Facilities Grant (EFG) allows for tax deductible donations to be used to pay for educational spaces within the house.

An EFG analysis is conducted to identify the percentage of space within a fraternity house that is dedicated to educational tasks. These spaces can be the square footage of bedrooms that contain a desk and chair, a dedicated history room, study hall, or library, as well as the space within a hallway used to access those educational spaces. Once the analysis has been completed, a percentage of the square footage of the house is determined as educational space and is used to set the amount that can be withdrawn from the Multipurpose Housing Fund.

The Magic of the Historical EFG

The Historical EFG truly is where the magic happens. By taking the percentage of the educational space in the house from the EFG analysis, we can receive tax deductible donations to reimburse the House Corporation for those expenses all the way back to 1984. This is huge!

For this example, let’s say that 35% of the house has been deemed as educational space. Note: the percentage is being calculated and has yet to be determined, this is NOT the actual percentage.

  • Construction of the house began in 1985.
  • Zeta Xi has paid 100% of the operational expenses during that time (utilities, taxes, insurance, furniture, etc.). Let’s say that the monthly operational costs averaged $3,000 a month.
  • 39 years (1985 – 2024) times 12 months (468 months) at $3,000 per month = $1,404,000 in annual operating expenses accrued since 1985.
  • If 35% of the space is educational expense, then $1,404,000 times 0.35 = $491,400.
  • We can request up to $491,400 of any tax deductible donations made to the Multipurpose Housing Fund be allocated for purposes other than educational expenses, such as paving the driveway, renovating the kitchen, or remodeling the bathrooms.
  • Donations over the $491,400 threshold still must be utilized for educational expenses; however, that now allows for up to 35% of the utilities, taxes, and insurance, and 100% of the internet and network costs, which are still deemed as educational expenses.

Benefits to Zeta Xi

Funds can be utilized for various purposes, including , but not limited to:

  • Qualified housing projects
  • Educational equipment & furnishings
  • Annual operating costs of the house
  • Housing loans
  • Room & Board scholarships
  • Historical preservation initiatives

Take Advantage of Qualified Charitable Distributions

Individual retirement arrangement (IRA) owners age 70 1/2 or over can transfer up to $100,000 to charity tax-free each year.

Known as qualified charitable distributions or QCDs, these transfers offer eligible older Americans a great way to easily give to charity. For those who are at least 73 years old, QCDs count toward the IRA owner’s required minimum distribution (RMD) for the year.

Normally, distributions from a traditional IRA are taxable when received. With a QCD, however, these distributions become tax-free as long as they’re paid directly from the IRA to the Zeta Xi Housing Fund, by way of the Pi Kappa Alpha Foundation.

QCDs must be made directly by the trustee of the IRA to the Pi Kappa Alpha Foundation (Tax ID 62-6039877) and earmarked to the Zeta Xi Housing Fund. Contact your financial advisor for specifics, but a direct donation meets the qualified charitable distribution rule.

Legacy Gifts

Legacy gifts may be made by naming the Pi Kappa Alpha Foundation as a beneficiary in your will, trust, IRA, Donor Advised Fund, life insurance policy, etc. with the gift specified to benefit the Zeta Xi Multipurpose Housing Fund.

You can also create your own will for free using the online tool from Free Will and name the Pi Kappa Alpha Foundation as a beneficiary, with the final designation to the Zeta Xi Housing Fund.

Other Gifting Opportunities

There are a variety of ways that you can contribute to the future of Zeta Xi via the Pi Kappa Alpha Foundation. Here are just a few opportunities.

  • Stocks, Bonds, and Donor Advised Funds (DAFs) – Donating appreciated assets avoids capital gains taxes and is tax-deductible, plus the the Zeta Xi Housing Fund receives the full market value.
  • Vehicle Donations – Zeta Xi is able to accept donations of cars, trucks, RVs, motorcycles, boats, and airplanes in nearly all conditions to help advance our mission through the Foundation’s partnership with CARS (Charitable Adult Rides and Services).
  • Cryptocurrency – Donating cryptocurrency, like Bitcoin, is safe, easy and tax-efficient. The benefits are similar to donating appreciated stocks, where the donor doesn’t have to pay capital gains taxes and it is tax deductible.
  • Property Donations – Zeta Xi is able to accept donations of property (land, homes, commercial, etc.) in nearly all conditions to help advance our mission.

For details on any of these programs, please contact Samir Hafiz (shafiz@pikes.org), Zeta Xi House Corporation Treasurer and Sr. Director of Development with the Pi Kappa Alpha Foundation.