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of the square footage of the house is determined as educational space and is used to set the amount that can be withdrawn from the Multipurpose Housing Fund.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.