|
Tips and Answers to Your Questions
The Forms of Strategic Restructuring
In a parent-subsidiary restructuring, does one entity lose
their 501C3 status?
No, both parties can continue to be tax exempt. Parent-subsidiary only refers
to the governance structure. The "subsidiary" makes the "parent" its
only member, thus giving it control of key functions, such as electing its
board.
For more information on parent-subsidiaries, you may want to review our national
research study, which includes 2 profiles of p-s case studies. It can be downloaded
from http://www.lapiana.org/research/nationalstudy.html.
|
