Charitable Donations for Dorms and Greek Houses? New Bill Opens Door for Tax-Advantaged Funding

This bill, the Collegiate Housing and Infrastructure Act of 2025, essentially gives a green light for charitable organizations, like foundations, to make tax-advantaged grants specifically for improving college housing – and that explicitly includes fraternity and sorority houses. The core idea is that these organizations can fund projects like renovations, maintenance, or operational costs for student housing without jeopardizing their tax-exempt charitable status, provided the money is used for purposes that would be acceptable for a standard college dormitory.

Dorm Rules Apply, Mostly

So, what's the catch? The bill lays out a key condition: these charitable funds must be used for purposes "permissible under section 501(c)(3) if provided for a dormitory of a college or university." Think essential upgrades, repairs, or keeping the lights on. It specifically carves out one exclusion: money cannot go towards building or improving physical fitness facilities. The bill defines eligible "collegiate housing property" as places where "substantially all" residents are full-time students at a local college or university. This aims to ensure the funds support genuine student housing, even if it's managed by a fraternity or sorority's associated housing corporation (often a separate non-profit holding the property title).

Who Gets the Upgrades?

On the surface, this could mean better, safer living conditions for some students, potentially helping preserve older campus housing stock, including historic fraternity and sorority houses. It taps into charitable dollars to address infrastructure needs that might otherwise fall on students or universities. However, the direct inclusion of Greek housing raises questions about fairness. Fraternities and sororities often serve a specific segment of the student population. Allowing charitable funds, which benefit from tax advantages meant for broader public good, to flow specifically to these groups could be seen as diverting resources that might otherwise support more universally accessible campus housing or other underfunded student needs. There's a potential here for charitable dollars to disproportionately benefit groups that may already have more resources or social capital compared to the general student body or other campus organizations.

Reading Between the Lines

The practical impact hinges on interpretation. What exactly counts as a "dormitory purpose" when applied to a fraternity house, which often blends residential and social functions? How strictly will the "substantially all" student residents rule be enforced? While the bill aims to improve student infrastructure through charity, the specific mechanism favoring potentially exclusive organizations introduces a dynamic where tax-advantaged funds could enhance facilities primarily benefiting members of those groups, raising questions about equitable resource allocation on campus.