The Founders Corporation
The 62nd Convention of Theta Delta Chi, in 1910, passed a fraternity law, which was ratified by the Charges, authorizing and instructing the Grand Lodge to organize a corporation to be known as the Theta Delta Chi Founders' Corporation for the purpose of holding and administering the endowment funds of the Fraternity. As instructed, the Grand Lodge organized the corporation under the laws of the State of New York on April 13, 1912. There was a board of 15 directors. The President, Graduate Secretary and Graduate Treasurer of the Grand Lodge were directors ex officio.
Over time, the Founders' Corporation has changed slightly. There are now nine Directors, consisting of the five members of the Grand Lodge and four elected directors. The President, Treasurer, Secretary, and Director-at-Large of the Founders' Corporation are elected members, not part of the Grand Lodge.
In recent years, as the Theta Delta Chi Educational Foundation became established as a public charity in the eyes of the Internal Revenue Service, it was determined that it would be best for the Founders' Corporation to divest itself of the fraternity's endowment and transfer it to the Educational Foundation. This was accomplished for the most part, but the Founders' Corporation retained some of its funds and has since received new funds from recent bequests. It stands ready to receive other bequests that may come to the Fraternity. This is the primary reason that the Founders' Corporation was not disbanded. Certain bequests may contain language that requires the existence of the Founders' Corporation. If it is no longer in existence when these estates are disbursed, funds originally intended for Theta Delta Chi may have to be directed to other recipients.
Consequently, the Founders' Corporation has survived as a non-profit corporation, which can use its funds for any purpose. Unlike the Educational Foundation, donations to the Founders' Corporation are not tax deductible, but it has the freedom to use its funds for any purpose, not just educational purposes. This is another reason that the Founders' Corporation has been retained as one of the Theta Delta Chi corporate entities. For example, interest from the Founders' Corporation endowment can be used to fund reimbursements for undergraduate travel to conventions, or to fund the Grand Lodge's responsibility to print The Shield magazine. Additionally, the Founders' Corporation can make loans for any reasonable purpose. Such activities are more scrutinized in a public charity such as our Educational Foundation.
Any member of Theta Delta Chi may become a life member of the corporation by paying to the treasurer the sum of $250. Membership is documented by issuing a numbered certificate of membership.
Although the Founders' Corporation currently operates in the background of the Grand Lodge, it supports our fraternal activities in a very direct way. In so doing, it provides an excellent way for alumni to remain involved in the operations of the Fraternity and to provide direction to the organization as a whole. Although this subtle element is often overlooked, there may soon come a time when the Founders' Corporation will again have a considerable endowment and will be able to regain a more significant role in the fraternity.
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