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
The rule as published, not tax advice; confirm anything that affects a return with a tax professional.
Related: Qualified organization, Tax Exempt Organization Search, Automatic revocation, Donee. Browse every term.
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