Many alumnae organizations have chosen to sell advertising for fundraising purposes or to help offset the costs of printing and mailing. There are a number of issues that arise from this that has caused us to review this practice.
Unfortunately, because of potential legal and tax implications of alumnae organizations generating income that would be taxable and possibly have implications as to the status of Pi Beta Phi as a private organization, effective April 2010, we are no longer able to allow alumnae organizations to sell advertising. Continuing this practice may also increase liability exposure to the alumnae organization and its officers. This decision has been reviewed and recommended by the Fraternity’s General Counsel and Internal Legal Counsel.
This practice also applies to the selling of advertising on Web sites. In addition to the dangers of generating income that would be taxable and potentially cause us to lose our status as a private organization, there are dangers of privacy and security issues of members, as well as potential jurisdictional issues in the event a court becomes involved. Therefore, alumnae organizations may not sell advertising on Web sites.
With either printed or Web site materials published by an alumnae organization, advertisers may advertise for free and may donate financially to the alumnae organization. It is recommended to include a statement in printed or Web site materials that indicates no fee was received for any advertisements.
Please contact Maja or Cindy Svec, Grand Vice President Alumnae with any questions.
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