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Tips and Answers to Your Questions
The Forms of Strategic Restructuring
What is the difference between an affiliate
organization and a chapter?
There are no hard-and-fast definitions for these terms in the nonprofit sector,
and different nonprofits use the terms differently. If you were to look them
up in a dictionary you would find that “chapter” means local
branch of some association and “affiliate” mean a subsidiary
or subordinate organization that is affiliated with another organization .
In practice, one organization's relationship with its “chapters” might
look very much like a second organization's relationship with its “affiliates” – and/or
very different from a third organization's relationship with its “chapters.” In
general, however, we have found that “chapters” tend be a bit more
centrally controlled or regulated than “affiliates.”
The key attributes of such relationships include the degree of local autonomy
enjoyed by the affiliates/chapters, and the types of services provided by the
national organization to its affiliates/chapters. In addition, there are differences
with regard to governance structures; the degree to which national organizations
set standards for and regulate their affiliates/chapters; how funds, fees and
financial accountability are distributed between the entities; and what happens
when affiliates/chapters cease to be affiliates/chapters.
More information on this topic can be found on our website, in Structuring
of Relationships among Affiliates of National Nonprofits.
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