Group exemption ruling
A ruling under which a parent organization's exemption covers affiliated subordinates that are not individually listed.
Under a group exemption ruling, a central or parent organization holds a ruling that identifies affiliated organizations covered by it. Publication 1828 describes the mechanism for churches: "Under the group exemption process, the parent organization becomes the holder of a group ruling that identifies other affiliated churches or other affiliated organizations. A church is recognized as tax exempt if it is included in a list provided by the parent organization."
The consequence for anyone checking a charity is that the subordinate may not appear in the search tool under its own name. Publication 1828 states it directly, in the language of the tool's former name: "Only the parent organization in a group ruling is included by name on Select Check." The IRS makes the same point currently, listing group ruling subordinates among the donees that may not be in Publication 78 data.
If a local congregation, post, chapter, or lodge comes back blank, the parent body is usually the thing to search for instead. Ask the organization which parent's group ruling covers it.
Sources
- Publication 1828 (rev. August 2015), Tax Guide for Churches and Religious OrganizationsIRS, IRS publication
- Search for tax exempt organizations (Tax Exempt Organization Search)IRS, IRS guidance
- Tax information for churches and religious organizationsIRS, IRS guidance
Definitions describe the rule as published. They are not tax advice, and almost every threshold above has an exception attached to it in the underlying publication. Confirm anything that affects a return with a qualified tax professional.
Related terms
Qualified organization
An organization eligible to receive tax-deductible charitable contributions. Giving to anyone else is generous, not deductible.
Tax Exempt Organization Search
The free IRS database for checking whether an organization is eligible to receive tax-deductible contributions.
Automatic revocation
Loss of tax-exempt status for failing to file a required annual return or notice for three consecutive years.
Donee
The organization receiving the donation. On larger noncash gifts, the donee has paperwork obligations of its own.
Values with the source attached
DeductiBee applies a cited fair-market-value range to everything you donate, keeps the photo with the record, and exports a Form 8283 worksheet when you file.
