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Can “affiliated” organizations join together under one holding company?

Your Legal Questions Answered

Can “affiliated” organizations join together under one holding company?

Is there a legal method for a group of “affiliated” 501(c)(3) organizations to join under one holding company so they are legally tied together? They are now affiliated by some common board membership and shared services.

It is not uncommon for a group of affiliated organizations operating a “system” of services to be controlled by a type of holding company parent. (See Ready Reference Page: “Charities Weigh Restructuring to Protect Assets.”)

Tuesday, March 4, 2008
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