What is a Parent organization?

A Parent organization holds ownership over other subsidiary entities, sometimes referred to as chapters.  Alternatively, a Subsidiary is under the common control or ownership of a parent group. A Parent may either list its subsidiaries as part of their group exemption on their IRS 501(c)(3) determination letter or simply recognize the entity as a chapter under its main organization. Sometimes a Subsidiary will have its own EIN but other times it does not.

What is a Subsidiary organization?

A Subsidiary organization does not have an IRS determination letter in its own name but will either:

• be named as part of a group exemption on another organization’s IRS 501(c)(3) determination letter, or
• will be recognized as a chapter of another organization who has its own IRS 501(c)(3) determination letter

What does a Subsidiary need in order to apply?

When submitting a request, proof will need to be provided which substantiates the relationship, as well as provides appropriate permissions to apply and directions for payment.

• All grant requests require a parent letter which details the nature of the relationship and provides specific payment instructions.  
• Additionally, if possible, it is ideal to include the IRS determination letter of the Parent organization accompanied by an official list provided to the IRS listing the Parent organization’s subsidiaries.