Expanded Reimbursement of IRDF Grants
The IRDF has supported fraternities and other independent living groups at MIT for more than 50 years.They have been there for Phi Sig too. One way the IRDF supports ILGs is through the “Project Grants” program. Under this initiative, MIT alumni donate to the IRDF, and the lion’s share of each donation (currently 90%) is directed to projects for the donor’s living group.
However, this program was originally limited in scope because it only reimburses projects that fall into one of three narrow categories:
Improving safety,
Improving educational resources, or
Improving accessibility for the disabled.
So critical items such as replacing our Comm Ave windows were not reimbursable. The restrictions limited this funding method’s practicality for many if not most ILG physical plant projects.
A significant change was made in 2019 regarding how the IRDF reimburses ILGs. This change expanded reimbursement to include historical preservation in addition to the three categories mentioned previously. Since our houses are in the Back Bay, many of the projects that Phi Sig would need to do fall precisely into the historical preservation category, meaning that a much larger portion of a physical plant project can be reimbursable via the IRDF’s Project Grants program.
Here’s an overview of how the IRDF Project Grant works:
An ILG like Phi Sig identifies the project.
The individuals driving the project speak to the IRDF, especially the Architectural Review Board, who initiate a preliminary (non-binding) assessment to determine which parts of the project are eligible for reimbursement.
The ILG secures construction loan funding from other sources (one of which may be the IRDF itself through another program) and proceeds with the project.
After the project is completed, the ILG applies to have a portion of the project reimbursed via IRDF’s Project Grants program.
The ILG can then use those proceeds to pay off the construction loan.
Thankfully, Phi Sig entered the COVID era with its finances already in an enviable position compared to many other ILGs. Nevertheless, our cash on hand and investment accounts cannot fully fund major capital improvements, thus our reliance on the IRDF program to keep Omicron’s physical structures safe, vibrant and appealing for generations to come.
In summary, the recent change to the IRDF Project Grants program represents a significantly improved way to help the Phi Sig Alumni Association to pay for important projects (such as ProjectCOVID Opportunity). While there are more restrictions on how the funds may be used compared to our unrestricted and preferred Building Fund, an IRDF donation may provide an alternative for alumni who need tax advantaged vehicles for large gifts or also want MIT giving recognition.
