Page 4 - Cal Delta Info Packet

Campaign FAQs

Why do we need a debt reduction campaign? we can then attack the USC loans with extra payments to
get free of those earlier as well.
As we begin this campaign, the loan payments on the
house currently total over $12,000 per month and consume Why are gifts to this campaign not tax deductible?
52 percent of monthly rent income. In addition to the loans,
the House Corporation incurs operating expenses such as In accordance with federal law, tax deductibility is only al-
utilities, insurance and maintenance. As it now stands, rev- lowed for the portions of the House that are specifcally
enues average about $23,000 per month, while total ex- designated as educational spaces. Those spaces were
penses, including loan payments, average around $30,000. fully funded in the previous campaign.

The difference has been covered by pledges made by How can I make a gift?
alumni during the original Capital Campaign that rebuilt the
House. Pledges were made for fve years, and next year Check or credit/debit card
those will be completed. This campaign is imperative to
paying down our debt burden and thereby providing a se- Stock Gifts: You may utilize appreciated stock to fulfll your
cure, sustainable fnancial footing and ensuring we contin- campaign pledge commitment. If you wish to make this
ue to own our chapter house. type of gift, please contact Bruce Buettell at brucebuettell@
yahoo.com and he will assist you with the procedure for
What will happen if we do not undertake this cam- that type of pledge commitment.
paign?
Estate Gifts: You may designate a gift through your will,
If we do not move forward with a debt reduction campaign, trust, life insurance, or by some other means.
we put the future of the House at risk. The fnancial obli-
gations we already place on our undergraduate members Your gift will be very much appreciated. Please have your
will not sustain a safe, well-maintained facility. It has now attorney or estate planning counsel coordinate with Bruce
been four years since the House reopened, and our main- Buettell to discuss an estate gift to the Securing Our Future
tenance honeymoon will soon be over with heavier outlays campaign.
expected.
To whom should I make out my check?
For the House to be in a truly sustainable fnancial position
over the long term, the debt needs to be eliminated en- Checks should be payable to:
tirely. We need to build up a capital fund to cover a major USC Phi Delt House Corporation
remodel that high-volume residences typically need every
20 years or so. Money we are now spending on debt pay-
ments needs to start fowing into this capital fund. Questions?

How much is owed on the loans to City National Bank Please send written correspondence to:
(CNB) and the University of Southern California? Securing Our Future
The Campaign for Cal Delta of Phi Delta Theta
The cost of rebuilding the House was just under $4 mil-
lion. With your support, we were able to raise $1.85 million. Campaign Headquarters
The loan owed to CNB is a little over $900,000, and we P.O. Box 80828 | Atlanta, GA 30366-0828
have two loans from USC that, combined, are slightly over
$900,000.
Please contact:
We enter this campaign with the CNB loan carrying a 3.75 Emily Wood, Senior Account Manager
percent interest rate and a 15-year amortization schedule, T: 770-903-3987 F: 770-903-3988
but it is due in full in just fve years. The larger loan with E: ewood@thelaurusgroup.net
USC is at 6 percent interest and a 30-year amortization, but
is also due in full in fve years. By eliminating the CNB loan,