FundSvcs Community

"The IRS sometimes recognizes a group of organizations as tax-exempt if they are affiliated with a central organization. This avoids the need for each of the organizations to apply for exemption individually. A group exemption letter has the same effect as an individual exemption letter except that it applies to more than one organization."

Having a group EIN has allowed my organization to streamline the accounting function by only submitting one tax return, so I understand the value of it from an organizational management standpoint. But it has had some unforeseen consequences for us in fundraising. The problem is that officially in the IRS database, my organization is just listed as "GRID Alternatives" with the headquarters address, and then each affiliate is also listed as "GRID Alternatives" with the headquarters address, but with its unique EIN. Each of the affiliates should be named "GRID Alternatives Colorado, GRID Alternatives Los Angeles, etc" but because of the Group EIN, they aren't. When databases like Donor Advised Funds and workplace giving entities pull their information from the IRS database, what they end up with is 9 listings that look almost identical. (see below)

The problem with this is that many donors don't realize that the EINs are different. They simply search "GRID Alternatives" and often select the first one off the list. Or, they see all of the listings and are confused.

We do partially address this proactively by notifying likely or returning donors to search for the EIN of the affiliate that they want to donate to, rather than just searching for "GRID Alternatives", but that's not a complete fix. New donors won't know, and also people will forget or make mistakes. I've asked Fidelity Charitable, Vanguard Charitable, etc. multiple times if they would allow me to add a Doing Business As name, or change the name and address, but they have told me their hands are tied because they get their info from the IRS. 

The result is that donors are sometimes confused, and don't make donations to the location they intend to donate to, and our Development Officers are also confused and feel like they aren't getting credit for their work if a solicited donation ends up going to the wrong location. 

Does anyone have advice for how to address this situation? Thank you for any guidance. 

"The IRS sometimes recognizes a group of organizations as tax-exempt if they are affiliated with a central organization. This avoids the need for each of the organizations to apply for exemption individually. A group exemption letter has the same effect as an individual exemption letter except that it applies to more than one organization."

Having a group EIN has allowed my organization to streamline the accounting function by only submitting one tax return, so I understand the value of it from an organizational management standpoint. But it has had some unforeseen consequences for us in fundraising. The problem is that officially in the IRS database, my organization is just listed as "GRID Alternatives" with the headquarters address, and then each affiliate is also listed as "GRID Alternatives" with the headquarters address, but with its unique EIN. Each of the affiliates should be named "GRID Alternatives Colorado, GRID Alternatives Los Angeles, etc" but because of the Group EIN, they aren't. When databases like Donor Advised Funds and workplace giving entities pull their information from the IRS database, what they end up with is 9 listings that look almost identical. (see below)

The problem with this is that many donors don't realize that the EINs are different. They simply search "GRID Alternatives" and often select the first one off the list. Or, they see all of the listings and are confused.

We do partially address this proactively by notifying likely or returning donors to search for the EIN of the affiliate that they want to donate to, rather than just searching for "GRID Alternatives", but that's not a complete fix. New donors won't know, and also people will forget or make mistakes. I've asked Fidelity Charitable, Vanguard Charitable, etc. multiple times if they would allow me to add a Doing Business As name, or change the name and address, but they have told me their hands are tied because they get their info from the IRS. 

The result is that donors are sometimes confused, and don't make donations to the location they intend to donate to, and our Development Officers are also confused and feel like they aren't getting credit for their work if a solicited donation ends up going to the wrong location. 

Does anyone have advice for how to address this situation? Thank you for any guidance.