Trust Becomes the "Trust, Inc."
Wednesday, June 25, 2008
The Trust becomes the "Trust, Inc."
Establishment of The Chi Psi Educational in 1926 was one of our Fraternity's important "firsts" and one of which all Chi Psis have been proud. Now, in 2008, we have taken another important step by converting the underlying trust entity into a modern not-for-profit corporation.
As the first college social fraternity to create an educational foundation, Chi Psi emphasized the importance of academic achievement and personal development as elements of each active's college years. For 80 years, the Trust remained, in fact, an entity that was a "trust" in the same way as many individuals establish trusts today for specific family and charitable purposes. As states enacted better laws governing not-for-profit corporations, the Trustees began to assess the simpler governance and investment procedures -- and reduced costs -- that could come from converting to such a structure.
In November 2001, The Chi Psi Educational Trust, Inc. was incorporated in Illinois but was funded with only the minor amount needed for its creation. In 2003, the new corporation was granted the same tax exempt status by the Internal Revenue Service that the Trust has enjoyed for several decades. On April 9, 2008, the Circuit Court of Cook County, Illinois (which had jurisdiction over the Trust under the 1926 indenture document) approved the Trustees request to transfer all of the Trust's assets to the new corporation and to dissolve the original "trust" entity that was created in 1926. The transfer of assets is underway.
The purposes and safeguards created by the alumni who created the Trust in 1926 have been carried over to the new corporation. Neither contributors to the Trust nor the young Chi Psis who benefit from its scholarships, fellowships and personal development programs will see any difference -- other than perhaps the somewhat happier faces of Trustees who will be able to manage the Trust's affairs in a modern structure.
The Chi Psi Educational Trust, Inc.
45 Rutledge Street
Nashville, Tennessee 30210