The Internal Revenue Service has revoked the tax-exempt status of the Graystone University Housing Corporation, a nonprofit connected to the Phi Gamma Delta fraternity at Bucknell University, Inside Higher Ed  reports.

The foundation was established in 2003 to collect donations to renovate a fraternity house, and, according to its articles of incorporation, “exclusively for charitable and educational purposes, including the provision of lodging, dining, library, technological and related educational facilities for students.”

The federal agency ruled that the foundation was doing no more than helping the fraternity with the upkeep and operations of the house and therefore was not fully meeting its stated purpose.

Ted Groom, a lawyer for the foundation, told the Web site that while the foundation planned to provide educational scholarships and programs, “The fraternity was placed on suspension for a period of time, which interrupted the expected flow of revenue and intended activity.”