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There are two ways for a nonprofit to umbrella another nonprofit.

The first is as a wholly owned subsidiary. In other words, one nonprofit owns the other. They may have the same board members and have joint boards meetings.

The other way is when a established agency partners with a new program that do not yet have a 501 (c) 3. The established agency acts as the program's fiscal agent and allows it to use their 501 (c) 3 to accept tax deductible donations. Fiscal Agent agreements vary greatly and are only as good as the information included within. It should be noted that a program that has another agency acting as its fiscal agent is not technically a non profit as it only exists by way of the fiscal agency agreement.

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Q: What is the process for a nonprofit to umbrella another nonprofit?
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