A subordinate organization is one that is under control of the central organization.
"A subordinate organization is a chapter, local, post or unit of a central organization. A central organization may be a subordinate itself, such as a state organization that has subordinate units and is itself affiliated with a national (central) organization."
A subordinate organization may or may not be incorporated, but it must have an organizing document. A subordinate that is organized and operated in a foreign country may not be included in a Group Exemption Letter (GEL). A subordinate described in section 501(c)(3) may not be included in a group exemption letter if it is a private foundation described in section 509(c).
This article's tone or style may not reflect the encyclopedic tone used on Wikipedia. (December 2007) (Learn how and when to remove this template message)
If an organization is a subordinate one controlled by a central organization (for example, a church, the Boy Scouts, or a fraternal organization), it is necessary to check with the central organization to ensure it has been issued a GEL that covers the organization. If it has, you do not have to file a separate application unless your organization no longer wants to be included in the group exemption letter.
If a group exemption letter does not cover your organization, ask your central organization about being included in the next annual group ruling update that it submits to the IRS.
- "Tax-Exempt Status for Your Organization" (pdf). Internal Revenue Service. October 2010. p. 7. Retrieved 6 January 2011.