Chapter Escrow Accounts

When a chapter is closed, the Black Book requires that all of the chapter assets are liquidated and the cash be transferred to the Offices of the Grand Chapter for safekeeping. The Grand Council has established escrow accounts within the TKE House Fund (THF) for this purpose. Alongside other THF investments, these escrow accounts are invested in accordance with the fund's investment strategy.

Investment earnings from each chapter's escrow account are credited to back to the escrow account, less an administrative fee of 2% (not to exceed $2,000 per year). Chapter escrow accounts are funded liabilities of Tau Kappa Epsilon, and are accounted for on the annual financial statements that are audited by the Fraternity's independent auditor.

Normally, when a chapter is re-started, it is anxious to withdraw the funds and close the THF escrow account. However, there is an established process that needs to be followed:

  1. The Board of Advisors (BOA) needs to meet and vote to petition the Grand Council for the release of the escrow account.

  2. The BOA Chairman completes and signs the Application for Release of Escrow Deposit and sends it to the Offices of the Grand Chapter.

  3. The Offices of the Grand Chapter sends notice to chapter alumni (when applicable).

  4. The application, and alumni feedback, will be presented to the Grand Council at the next practical meeting.

The following requirements have been established by the Offices of the Grand Chapter for the release of escrow accounts. Although every request will be considered, the Board of Advisors should explain in the application, or attachment, why it feels that a particular requirement should be waived.

  • Must be a chapter (not colony) in good standing, which is defined as meeting, or exceeding, the current minimum chapter standards:
    • At least 20 collegiate members registered with the Offices of the Grand Chapter

    • No debt to the Offices of the Grand Chapter, ACP Resources (annual membership fees), or Willis HRH (risk management fees) that is over 120-days old

    • Active Board of Advisors and Chapter Advisor

  • Funds must be used for a similar purpose from which they were received.

When an escrow balance exceeds $12,000, or the Board of Advisors asks for a waiver of the established requirements, the Offices of the Grand Chapter will give notice to chapter alumni and offer the opportunity for comment.