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Is it legal to use Fraternity/Sorority money raised up for a specific event to run the chapter instead?

So I know of a Fraternity/Sorority who marketed their philanthropy and a lot of people donated money for a specific event and now they are using that money to run the chapter. Is this legal? to market that all proceeds will go to a free event and then the left over money for the same event for next year is being used to run their chapter? It doesn't seem legal to me but I wanted to get an opinion and help in here.

Public Comments

1. That doesn't seem legal because they can use a certain amount when they actually have more money in store. So let's say you guys give them a total of $500 they can choose to use only $100 and the rest of the money goes to themselves?
2. that is not legal.
3. Good Luck proving they misappropriated funds, and good luck finding donors who will want to bring a tort suit or prosecute.
4. It might be considered fraud, in that they asked for donations for one thing and are now using the donations for another thing. It's certainly shortsighted. This group will now have a lot of difficulty raising money again, as they've proved that they can't be trusted with funds.
5. A greek organization can fundraise for itself, but they can't make it look like it was all for charity. My sorority did do fundraising 50% of the proceeds toward chapter operations and 50% toward charity, we just had to write "a portion of the proceeds go to such and such charity" The school would have specific rules about groups raising money for themselves.