Nonprofit Q&A: What is Group Exemption?

Colorful umbrella with sections of red, orange, yellow, green, blue, and purple, covered in raindrops—like a vibrant symbol under an umbrella organization offering group exemption status.

What is a group exemption?

The IRS will allow organizations that are affiliated with a central organization to apply for tax-exempt status as a group. This not only saves time for the organizations applying, but it also relieves the IRS of reviewing each subordinate organization’s application for tax-exempt status.