<p>One of the biggest reasons why I never considered rushing is because of the extra 2K or so. But does it cover living in the house and the meals? If so, that’d be a MUCH cheaper alternative to dorms.</p>
<p>Most fraternity chapters are part of a national organization and pay fees to the national organization. Most of the $2K you mention would go toward that, with the remainder going into the chapter’s general fund, which pays for budget items like maintenance of the chapter house, rush events, parties, etc… Fraternity members who live at the chapter house would pay rent in addition to their annual dues.</p>
<p>Insurance. Frats have ridiculously expensive insurance, I’ve heard, since they are really high risk. As in, risk of damage to the frat house and the liability of someone getting injured, etc. at a frat party.</p>
<p>Well that’s a bummer. Is living in frat houses at least cheaper than on campus housing?</p>
<p>I like to explain dues to independents like this:</p>
<p>Normally when you go out with your friends to do some activity, you’ll do something like splitting a dinner tab. Maybe someone will cover taxi fare, and you’ll pay them back. Or you’ll all pitch in for some beer and pizza.</p>
<p>Fraternity dues do just that, but upfront instead of on demand.</p>
<p>Moreover, you can do way better social activities when all the money is put upfront, like doing a weekend trip for formal or having a band party.</p>
<p>And then, yeah, there’s insurance that goes to the national organization. This is a minority of what your dues go toward. It’s not even close to being the reason that dues are what they are.</p>
<p>Technically speaking, neither individual fraternity chapters nor their national organizations have traditional liability insurance. The NIC fraternities and sorrorities self-insure through a joint fund called the Fraternity Insurance Purchasing Group. They have to. No insurance company is willing to underwrite them. </p>
<p>The cost of living at the chapter house varies by school and fraternity. However, as a general rule, it is cheaper than living in the dorms. Some campuses have university-owned greek housing, and those chapter houses are usually the most expensive housing option on campus.</p>