Group Exemption Letters

Our Base Fees:

$3995 – Plan C - Group Exemption Letter
Includes 501c3 and central organization incorporation + Plan D for each additional subordinate

($2995 if you already have your 501c3)

$600 – Plan D - Incorporation and/or incorporation documents, for a Subordinate under Group Exemption Letter (to be included in Group Exemption Letter application)

IRS Fee: $3,000

A Group Exemption Letter is given by the IRS to a central organization that has subordinates (or chapters) so that the subordinates or chapters do not have to file for their own 501c3 tax-exempt status. We do both the application for group exemption for the central organization as well as prepare the corporate and incorporation documents for the subordinate organizations.

The IRS User Fee is $3000 for a Group Exemption Letter, and our Base Fee is $3995. Our Base Fee includes the Group Exemption Letter, the 501c3 for the central organization, and the incorporation for the central organization. Our base fee for the corporate and incorporation documents is $600 for each subordinate. If your subordinates are not incorporated, we will incorporate them at no additional cost (unless there are Extras). There may be Extras added to the Base Fee for both the central organization and the subordinates. The Extra for "Income or Assets over $_____ first three years" applies to the total for the central organization plus all the subordinates that are being brought in under the group exemption at the time of application. Our fees are exclusive of state and federal filing fees. The Group Exemption letter can be useful for churches that wish to have "daughter" churches under a head or principal church (denominational model) as well as for organizations with many chapters.

Group exemptions are for related organizations that are very similar to each other in their structure, purposes and activities. The central organization generally supervises or controls many chapters, called subordinate organizations. An example of this would be the Rotary Club or the Boy Scouts. To qualify for a group exemption, the central organization and its subordinates must have a defined relationship. Subordinates must be affiliated with the central organization and subject to its supervision or control.

A subordinate that is organized and operated in a foreign country may not be included in a group exemption letter.

Although churches are not required to apply for recognition of their own status in order to be tax-exempt, under the procedures for group rulings, a church must request recognition of its own exempt status in order to be the central organization in a group ruling.

A subordinate may not be included in a Group Exemption Letter if it is a private foundation. Such an organization should apply separately for recognition of exempt status.

All subordinates must be on the same accounting period as the central organization if they are to be included in group returns.

All documents within 5 working days.

Fast delivery, impeccable client service.
Quality from start to finish.