Form 1023: Information About Closely Connected Organizations

How far reaching is the question about whether an organization has a close connection with any organizations?

This question is aimed at developing information about separately established organizations that have (or plan to have) a relationship involving sharing or coordinating finances, employees or activities.

For example, an organization filing Form 1023 that was created by a section 501(c)(6) business league (at the same time the business league created a section 527 political action committee) to perform the business league’s charitable activities would answer Yes. It must then describe its relationship with the business league and the political action committee, including precautions it will undertake to ensure that its conduct remains consistent with its exempt status.

Where there are no current or planned relationships between the organization and another organization (other than the fact that one or more individuals created or exercise substantial influence over both organizations), the organization would answer No.