Groups of organizations with group exemption letters have a "head" or main organization, referred to as a central organization. The central organization generally supervises or controls many chapters, called subordinate organizations. The subordinate organizations typically have similar structures, purposes, and activities.
To qualify for a group exemption, the central organization and its subordinates must have a defined relationship. Subordinates must be:
- Affiliated with the central organization; Subject to the central organization's gen- eral supervision or control; and
- Exempt under the same paragraph of IRC 501(c), though not necessarily the paragraph under which the central organization is exempt.
If the church or other affiliated organization is included on such a list, it does not need to take further action to obtain recognition of tax-exempt status. An organization that is not covered under a group ruling should contact its parent organization to see if it is eligible to be included in the parent's application for the group ruling. For general information on the group exemption process. For more information, refer to Revenue Procedure 80-27, 1980-1 C.B. 677.