Article Archives >> To the Point

Does the local chapter of a national organization have to obtain its own 501(c)(3) charitable status or can it "ride" on the national's 501(c)(3) status? 

A local chapter may be able to “ride” on the exempt status of the national organization if the national organization has filed for and received a “group exemption” covering its local units.  (See Ready Reference Page: “Group Exemption Can Ease Burden on Affiliates.”)  If there is no group exemption, the local units will probably have to obtain their own recognition.  The national organization will obviously know whether it has a group exemption and whether it is eager to add local chapters, so you should check with it.

Even if the national provides access to a group exemption, however, a local chapter may want to obtain its own.  This is ultimately a type of power issue and the local may not want to maintain its exempt status at the national’s discretion (mercy, whim, sufferance -- you pick the word).  If there were a dispute with the national, the local chapter might have to change its name and some of its program, but at least it wouldn’t have to start over with the IRS and would not lose its exempt status arbitrarily.

What our readers say about Nonprofit Issues

Once again you've tackled a tricky question and explained it so we all can understand the issue.--M.V.

Thank you for your informative and keen advice on nonprofit matters. I believe it's a unique and concise place to get answers to this often wispy area called nonprofit. --R.T.

Receive the weekly question by e-mail

Have a question?

If you can't find your answer, submit a question and Don will pick one question a week to answer online and to include in our weekly e-mail notice.

Other ways to
find answers:

Talk to the Editor
Next Conference Call:
Tuesday, February 14, 2012

Participate in this bi-monthly telephone seminar conference call and ask your questions directly to Editor Don Kramer.

Access the entire site
($9.95/24 hours, $17.95/3 months).


  Help

Nonprofit Issues Live
Full Day Program
A well-received full-day program that covers the current hottest topics in nonprofit law. Qualifies in Pennsylvania for Continuing Education credits.

Speaking Engagements
Don is available for programs and speaking engagements ranging from a one-hour presentation to a full-day primer on nonprofit law. Contact us if you are interested in having him speak at your program.


None of the information on the Nonprofit Issues Website should be deemed legal advice or
should be acted upon without prior consultation with appropriate professional advisors.
Materials prepared by Nonprofit Issues contained in these pages is copyrighted by Nonprofit Issues, Inc., 2009.

Home | Article Archives | Ready Reference | Ask the Editor | Bookstore | About Us

Access Subscriber Account
Subscribe or Renew

Free E-notice

Nonprofit Issues, Inc.
P.O. Box 482
Dresher, PA 19025
(215) 542-7547 FAX (215) 542-7548
1-888-NP-Issue

E-mail Us