ND BETA CHAPTER

CAMPAIGN TARGETSIMMEDIATE NEEDS AND OPPORTUNITIES

1. Our side lawn to the east has been effectively swallowed by NDSU’s expansion of T-Lot. Our sand pit volleyball court no longer exists. Remedial landscaping plus improved signage is necessary now to improve ND Beta’s visibility to campus and enhance privacy from multi-story apartments to the immediate south.

2. By retiring debt, up to $14,000 annually

could be redirected to enhance community, leadership and career advancement opportunities for brothers and alumni. Within the past year, four alumni committees with undergraduate representation have been created to proactively oversee the fraternity’s financial sustainability, brotherhood development, facility management, and alumni relations. Free of debt, these alumni can think and act creatively to reposition our fraternity onto solid ground.

ND BETA TARGETS DEBTWITH $1.1 MILLION CAMPAIGN

50% ALREADY PLEDGED!Sigma Alpha Epsilon’s proud legacy at North Dakota State University spans nearly eight decades. Over 1,400 young men have become True Gentlemen and developed into outstanding leaders in their home communities, businesses, academia and government. In a recent ranking of the top US fraternities by �e Daily Beast and Newsweek Magazine, ΣAE is second only to ΣΧ of 75 national fraternities.

Despite our success, ND Beta’s future is at risk due to long-term debt incurred by our full scale renovation mid-decade. Reconstruction of our chapter house was paramount to our continued viability and subsequently re-established the gold standard for competitive Greek living at NDSU. Seven years later, with renovation pledges nearly fu�lled, annual undergraduate rent of $24,000 is our only source of income to service our $825,000 mortgage and long term loans.

TARGETED FUNDRAISING UNDERWAYBased on input collected from a broad collection of brothers in the Fall of 2011, House Corp is launching the quiet phase of a capital campaign in 2013 to protect our rich legacy and provide for future generations. �e $1.1 million project will eliminate debt and complete priority, deferred improvements to enhance the curbside appeal of the chapter house. To date 50% has been pledged by just 28 donors! Working with a targeted list of committed brothers such as yourself, volunteers hope to raise a total of $770,000 before reaching out to all alumni for a gi�. We’ve got less than $222,000 to go thanks to early donors.

Mortgage & Interest Over 5 Years$975,000

Competitive Improvements$125,000

NEWSLETTER February 2013Volume 1

$1.1 MILLION CAMPAIGN

JUST IN...SPRING RUSH NETS10 PLEDGESHouse Corp members Beau Bateman '85, Ralph Johnson '82, Perry Miller '83 and Fred Daggett '85 were active rush partners with undergraduate brothers this spring semester 2013. “We expect 10 pledges,” said Beau, “a good number for any fraternity in Spring Rush. We have signed Crusaders, Spartans, Pirates, Huskies, Lourdes, Raiders, Tornados and Demons... all their high school mascots!”

“�e support we’ve received from all generations of brothers has been remarkable to this point,” said Doug, whose family will honor his brother Brad by naming the chapter house living room. “Volunteers have carefully analyzed our alternatives, tested our business model with key alumni, and shared their spare time and �nancial resources. Other brothers are now coming to the table. Celebrating our chapter’s 75th anniversary helped set the stage for the campaign’s importance. �e energy and commitment to the fraternity shared by our brothers in the room was tangible. Without the direct intervention of all brothers now, our legacy and bond are threatened, and we won’t have the opportunity to celebrate future milestones together.”

MEET THE CAMPAIGN TEAMDoug Burgum '78 is leading the 17-brother, alumni campaign committee who will be responsible for securing the goal.

Chair: Doug Burgum '78 701‐297‐0966 doug@tallgrasstrail.comVice Chair: Keith Peltier '75 701‐341‐1454 proseed@gondtc.comTreasurer: Jerry Kensok '78 701‐200‐1503 jerry@lewisandclarkfunds.comJim Aipperspach '70 515‐327‐8480 jaipperspach@bearence.comPaul Anstett '68 701‐361‐6602 panstett2@yahoo.comBob Challey '67 925‐979‐7330 rchalley@ppglp.comRoger Johnson '56 701-235-3084 johnson3455@hotmail.comDave Maring '71 701‐224‐0430 dmaring@maringlaw.comTom Martin '90 701‐371‐2283 tmartin@keycontracting.comGary Paulsrud '67 701-293-5355 gpaulsrud@pfg1.netJohn Pierce '66 701‐261‐8040 pierce@cord.eduJay Reinan '87 720‐839‐7900 jreinan@reinanlaw.comJohn Stibbe '82 701-412-7986 jstibbe@firstintlbank.comScott Stofferahn '80 701‐799‐0891 sjstofferahn@yahoo.comKen Strandberg '74 701‐200‐9698 kenneth.strandberg@ndsu.eduTom Thompson '88 612‐799‐6134 thomas.thompson@thrivent.comMark Weber '81 701‐212‐9146 mark.f.weber@ndsu.edu

LOOKING AT THE NUMBERSTo prevent the house from defaulting, brothers have stepped forward to shoulder the load. With �nances our #1 concern, the fraternity has been unable to seize opportunities to build our competitive advantage over other NDSU Greeks, and complete necessary house improvements. Without a change of course, ND Beta could be le� without a home.

“I am deeply grateful for all thatI have learned and gained fromΣAE.” said Doug. “The bonds of brotherhood were so strongly feltat my own brother Brad’s funeral.Our family will always be thankful.”

2007 Renovation Cost: $1.4 millionProceeds from first campaign: $700,000 ($40,000 in outstanding pledges)

Mortgage & long-term debt: $825,631Annual debt service: $66,570 (principal plus interest)

Annual operating expenses: $14,663Undergraduate rent: $24,000Projected annual deficit: $54,594

RUSH WEEK HIGHLIGHTSas reported by Beau

A bold move... free haircuts played well as two enthusiastic gals from a local salon set up shop on our invite in Reed Johnson. They recognized the client development opportunity and local observers report the stylists actively recruited for their chair and our chapter!

Frozen turkey bowling in the high-rise driveway required no refrigeration as temps went sub-zero early in the week and stayed there.

Buffalo Wild Wings at Churchill dorm brought the uninitiated many to the main floor. Three key recruiting components... free, spicy, and food worked well to seal the deal on many of our new candidates.

Bid dinner was held at the Hjemkomst Center in Moorhead with our new faculty advisor Christopher Suriano, Associate Director of the NDSU Wellness Center, and Beau Bateman in attendance.

On February 11th our guests included NDSUPresident Dean Bresciani, Vice- President for Student Affairs Prakash Mathew, andGreek Life Director Courtney Barstad.

IRS REGULATIONS FORCE DIFFICULT DECISIONS Classi�ed as a 501(c)7 non-pro�t, donors to ND Beta don’t qualify for an automatic tax deduction such as with a church or the American Red Cross who are designated as 501(c)3 non-pro�ts. ND Beta can partner with a third-party to help donors qualify for a tax deduction - the Fargo-Moorhead Area Foundation. However, IRS restrictions severely limit the return of these dollars on an annual basis, and most signi�cantly, they can never be used to retire mortgage principal. Based on an average annual chapter operating budget, House Corp estimates only $2,600 could be reimbursed to the chapter per year from these “indirect” charitable funds.

Given our signi�cant debt load, Campaign Treasurer Jerry Kensok '78 has calculated that a gi� made directly to the Fargo Alumni Association of ΣAE Fraternity has at least three-times the impact of an “indirect” tax deductible donation. “It’s that simple,” said Jerry. “Donations made directly to the chapter can be put to work immediately for our most important needs. We’d like nothing better than to retire our debt in �ve years. Only in this manner can we get the job done. Together we can �nish the house upgrades and pay o� the mortgage to secure the ΣAE experience for future young men at NDSU.”

EARLY, DIRECT GIVING PROVIDES STRONGEST BENEFITAll gi�s and pledges are appreciated to realize the chapter’s vision. But as the project kicks-o�, the campaign team is working one-on-one with targeted alumni - like yourself - to secure 70% percent of the campaign goal before reaching out to all brothers. Direct donations can be used immediately to reduce mortgage principal and interest fees, therefore gi�s made early in the campaign have the biggest impact. “In fact a front-loaded gi� compared to a �ve-year pledge is like giving 15% more to the campaign,” added Jerry Kensok.

GIVING APPRECIATED SECURITIES IS EASY Jerry Kensok '78 and Paul Olson '78 are the campaign’s �rst donors to contribute gi�s of appreciated securities. “I can’t believe how easy it was,” said Paul, who is a member of House Corp. “I called my broker, and 24 hours later it was done. It was so simple, and it saved me capital gains.”

Paul’s donation was also a one-time gi�. “Although I’m a banker, I don’t like debt. Since I had capital gains, gi�ing these securities to the fraternity allows us to pay down the debt ASAP. Without the mortgage, we can move money to improve brothers on campus.”

PELTIER FAMILYMAKES FIRST GIFTUSING COMMODITIES

The Peltier Family certainly bleeds violet, green and gold. Strong NDSU alumni, three Peltier men are also True Gentlemen: Joe '51, Keith '75 and Jeff '76. “I believe that putting the fraternity in the best possible financial situation now will help secure ΣAE’s future.” said Keith.

“Making a gift of commodities was really easy,” added Keith. “For me, I was able to make an immediate and perhaps larger gift than I could have otherwise. We didn’t even have to write a check. All I did was pick up the phone. It was a simple, smooth transaction with positive tax benefits for our operation. The chapter benefits by being able to use these funds immediately to reduce the mortgage.”

In recognition for their contributions to theBE TRUE Campaign, the Peltier Family will name the dining room at the chapter house.

Given Keith’s first-hand experience, contact him at 701-341-1454 with any questions you may have concerning a gift of commodities. Although they are not tax deductible such as a charitable contribution, they may reduce income, thus lowering federal/state income taxes and self- employment taxes. Prior to a gift of commodities, consult with your tax advisor to determine the best giving strategy.

Gifts can be given one-time or pledged over 5 years. Complete a pledge card to ensure proper acknowledgement of your gift. Acknowledgements and pledge reminders will be distributed in a timely fashion.

BE TRUE donors who contribute directly to the fraternity will be uniquely recognized for the huge

positive impact of their donations. Numerous naming opportunities are availableat the chapter house for direct gifts of $25,000 or more.

Contact Jennifer Noble, 217-840‐9684 or jen@ivypartners.com for more information.

Entrance Hall ........................................... $250,000EA Suite, Patio/Deck, Kitchen ..................... $100,000Library, Volleyball Court ............................. $50,000 - $99,999Suites 1-8; Boiler Room, Outdoor Signage .... $25,000 - $49,999

The chapter house living room and dining roomhave already been spoken for.

NAMING OPPORTUNITIES GOING FAST!

LEARN MORE ABOUT ΣAE AT

WWW.SAENDSU.COM

BOB CHALLEY '67 CHALLENGESCLASSMATES OF THE 1960s! A member of the BE TRUE campaign team, Bob Challey wants to double his gi� to the project. Already a solid supporter at the $50,000 level, Bob will provide an additional $50,000 in matching gi�s to encourage his 1960s classmates to become donors too. “My generation of brothers has the potential to be the biggest supporters of our fraternity,” said Bob. “�e need has been clearly demonstrated, and it’s critical that we join forces now to li� the chapter to new heights at NDSU. �ere is no time to pass the buck. We clearly bene�tted from our ΣAE experience. Our job is to guarantee this legacy for future brothers.”

To participate in the Challey Challenge, alumni - initiating in the 1960s - should consider:

1. Making a gi� or pledge of $10,000 or more between Feburary 25 and April 30. 2. �e donation must be a direct gi� to the Fargo Alumni Association of ΣAE. 3. �e Challey match will be capped at $5,000 per gi�. 4. Qualifying donors will be recognized on the BE TRUE donor roster for their total gi� (including their original donation plus the $5,000 match).

“I’m hoping that brothers from older and younger classes will see the fun of this challenge and give the 1960s a run for our money,” added Bob. “�e energy this e�ort could supply to the chapter is a win-win for everyone!”

NAMINGOPPORTUNITY

ANNUALGIFT

TOTAL GIFT5 YEAR PLEDGE

NUMBER OFDONORS NEEDED

Yes $50,000 $250,000 1

Yes $20,000 $100,000 2

Yes $10,000 $50,000 3

Yes $5,000 $25,000 10

Donor Wall Display $2,000 $10,000 15

Donor Wall Display $1,000 $5,000 25

Donor Wall Display $200 $1,000 80

$100 $500 100

$20 $100 MANY

*Direct Gifts are ear-marked for the Fargo Alumni Association of ΣAE.*Indirect Gifts also qualify for naming opportunities at three-times the value of a Direct Gift.

CAMPAIGN FUNDS BEINGPUT TO WORK!The Fraternity has received over $125,000 in cash already! For the first time in years, the House has a three-month operating reserve. The chapter has prioritized payment of deferred loans with the highest interest rate. Thank you donors!

DIRECT GIFTS NEEDED TO BE SUCCESSFUL

NEWS FROM 12TH AVENUE!

TOM THOMPSON ’88 SECURES FIRST MATCHING GIFT

A BE TRUE Campaign Committee member, Tom Thompson is the first alumni donor to secure a corporate match for his gift. While Tom gave the majority of his donation directly to the Fargo Alumni Association of ΣAE, he contributed a secondary amount to the Fargo- Moorhead Area Foundation, which helps qualify him for a match from his employer. “This was an opportunity for me to increase my overall gift amount,” said Tom. “It’s a dollar for dollar match. It all adds up to benefit the fraternity.” Funds contributed through the Fargo-Moorhead Area Foundation will return to the fraternity annually based upon a predetermined equation established by the IRS.

22 brothers received a 3.0 GPA or higher this fall semester (2012), including 7 on the Dean’s List.

5 members hold Presidential Scholarships,

and one - Lyle Nelson - has a National ΣAE scholarship, plus Phi Kappa Phi, Tau Beta Pi, Order of Omega, Beta Gamma Sigma, Presidantial Award for Excellence, and Entrepreneur Scholarship.

2 seniors have “job” news including: Kevin

Schroeder - Target Technology Services, Technology Leadership Program; Kyle Snyder - Black & Veatch, substation design.

Courtland Miller is the current Executive

Commissioner of Finance for Student Government.

Chapter philanthropy activities, coordinated

by Corbin Walters, include: sending 5-10 brothers monthly to the Ronald McDonald House to assist with chores, mailings, cooking and cleaning; assistance at Bethany Homes to help with bingo, game night, cards and other activities with residents. Later this spring semester, ND Beta will be working with Sanford Health and the Children's Miracle Network.

FOR MORE INFORMATION ON THE ND BETA CAMPAIGN, CONTACT:Jennifer Noble, 217-840‐9684 or jen@ivypartners.com