Kappa Kappa Gamma - The Ohio State University

BETA NU BULLETIN 2 We knew from the moment Beta Nu was suspended that filling the house for this upcoming school year was going to be a significant challenge, given that we were only a few months out. We finally reached a point when we determined we would have zero residents in the house this year. No residents meant that even though the house is leased to OSU, we would be caught covering every expense at the end of the year, including some operational expenses that keep the house from falling into disrepair. We could cover most of the mortgage with our pledged donations and revenue from parking, but we were concerned about donor commitments, and certainly not having any residents left us with a huge financial gap in funds available to pay for operations, taxes, and insurance. This became a sticking point for Ohio State, as you can imagine. Without Ohio State keeping the finances afloat over the next year, things were looking pretty grim. A Gift and a Guaranty Then, not one, but TWO miracles happened! A small group of anonymous donors offered to underwrite our operational shortfall! This selfless gift gave us life. Then, the Fraternity agreed to guarantee the rest. These two developments gave Ohio State the confidence they needed that any deficit owed to them by the end of this school year would be repaid by donors or the fraternity. With that being said, as the operational grant is a gift, the guaranty from Kappa is NOT. Any dollars we require from Kappa to make up any of our gap will be paid back at an interest rate of 8% (this was a non-negotiable fraternity policy) beginning August 2018. It will be critical that we as alumnae do everything we can to ensure that we don't need to access these funds. However, we are so very grateful that they are there in case we need them. Short-Term Focus And so, the lease was executed on September 1 st . Ohio State is caring for the home, our House Board members are jumping for joy, and now we can focus on the most important thing over the next two years: finishing our project in preparation for Beta Nu's return. To be clear—our fundraising has not eclipsed the cost of the capital improvements we have made thus far. All funds pledged up to this point will go toward paying off the capital project loan, which we needed in order to complete the construction phase in the time that we did. We still need to fundraise for future gifts that will fund the next phase of our project—installing the elevator and replacing bedroom furniture. We must finish these items in order to be in compliance with City and IRS codes. Not completing these items puts our occupancy permit and our educational area grant in jeopardy. We certainly don't want to chance anything that could prohibit our home being available when it comes time to recolonize; for we all know, without this house, we will not come back. So, if we do not raise enough to complete these items outright, we may have to use funds collected to repay Ohio State for their fronting of our project loan payments and instead borrow against the Kappa guaranty at an interest rate of 8% to repay Ohio State. It's not ideal, and we all can do something to prevent this from being the case. At the end of the day, I'm thrilled (and relieved) to be able to send you this message. We veered a little off course, but we're still on track. What I've learned most from this process is that we cannot take Beta Nu for granted. Your time, talent, and treasure have never been more important. Now, more than ever, we encourage you to consider how you can give back to Beta Nu. In the coming weeks, we will restart our campaign to build for the future. In the meantime, I hope you'll take a look at the gorgeous photos of the new home we've included in this newsletter. It still is, and always will be, the absolute finest. Loyally, Tanya Rutner '02 BNBA President (614) 271-8257 kkg.bnba.president@gmail.com Beta Nu Campaign Update (Continued from page 1) PREVIOUS SUPPORT HELPED COMPLETE THE RENOVATION

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