Subordinate organizations


A subordinate organization is one that is under control of the central organization.
According to the United States IRS Publication 557, Tax-Exempt Status for Your Organization this is the definition for a subordinate 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 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. A subordinate described in section 501 may not be included in a group exemption letter if it is a private foundation described in section 509.