The Links Foundation, Inc. Newsletter, Number 2, May 1992 Page: 4
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(or all) of the members of the Board of the
Foundation. The Links, Inc. could also have the right
to approve all amendments to the articles of
incorporation and bylaws of the Foundation.
If The Links, Inc. wishes to have control over a
majority (or more) of the Board of Directors it may
do so. In fact if desired, the Board of The Links, Inc.
and The Links, Foundation may consist of the same
individuals. In general, the composition of the Board
of Directors of The Links, Inc. and the Foundation
can be structured any way the leadership of the
Question: Must "outsiders" serve on the Board of
Answer: There is no requirement in the law that
"outsiders" must serve on the Board of Directors of
Question: Would there be any advantage for The
Links, Inc. to become a 501 (c) (5), 501 (c) (7) or 501
(c) (9) organization?
Answer: A 501 (c) (5) organization describes labor
and agriculture tax exempt organizations; 501 (c) (7)
refers to tax exempt social clubs; a 501 (c) (9)
organization describes voluntary employees'
beneficiary associations. There would be no advantage
in The Links, Inc. or The Links Foundation, Inc.
obtaining any one of these tax exempt statuses.
Question: Does the fact that chapters are not formally
involved in the Foundation structure preclude their
use of the Foundation?
Question: Is the parent body responsible for what
each chapter does with its money?
Answer: As long as each chapter completes its own
Form 990 as is presently the case, the parent body
cannot be held responsible for how its subsidiary
bodies handle their funds.
Question: How can the Foundation be beneficial to
the Links Chapters?
Answer: The foundation can be beneficial to the
Links' chapters in two ways:
(1) Charitable and educational programs
conducted by chapters can be funded by the
(2) The use of the Foundation by chapters would
obviate the need for each chapter establishing
and maintaining its own "foundation."
Question: Can one of our organizations be a
"supporting organization" to the other?
Answer: The Foundation can be a supporting
organization to The Links, Inc. but The Links, Inc.
cannot be a supporting organization to the
Foundation. If the two organizations are to remain
separate, it would be worth further exploring the idea
of causing the Foundation to be a supporting
organization with respect to The Links, Inc.
Questions and Answers
Question: Would there be any benefit for The Links,
Inc. becoming a 501 (c) (3) organization?
Answer: If The Links, Inc. had a 501 (c) (3) tax
status, there would be no reason (for federal income
tax purposes) for the Foundation nor would there be
a need to funnel donations received by chapters
through it. Each chapter would receive contributions
directly from contributors and control the use of such
funds. Conflicts concerning the use or control of
contributions received through the various chapters
should be eliminated since each respective chapter
would receive contributions directly from contributors
and control the use of such funds.
Question: Would there be any disadvantage for The
Links, Inc. to become a 501 (c) (3) organization with
all of its chapters under a group exempt letter?
Answer: Applying for and receiving such a letter
would be a long, drawn out and extremely complicated
process of determining the qualifications of each
chapter. Each chapter would have to make detailed
reports regarding its qualifications to satisfy the IRS.
The parent body would have to exercise tighter control
of the chapters' use of funds.
Question: Would it be mandatory that all chapters
come under the group exemption letter?
Question: What would happen to those chapter which
did not qualify or which would not want to be
included in the group exemption letter?
Answer: Basically, there would be no change in the
procedures currently followed by these chapters in
providing information to the parent organization or
Dissolution and Prohibition
By Link Clinita Ford, National Treasurer
I have received correspondence and several phone
calls from chapters with foundations. Basically, their
concerns fall into two areas:
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Links Foundation. The Links Foundation, Inc. Newsletter, Number 2, May 1992, periodical, May 1992; (texashistory.unt.edu/ark:/67531/metapth305961/m1/4/: accessed January 22, 2019), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; crediting UT San Antonio Libraries Special Collections.