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What is a Chapter Organization?

An organization that has local branches in multiple locations and shares a mission is called a chapter-based organization. Organizations can be national, state-wide, regional, or even sororities and professional associations.

Nonprofits with multiple chapters operate similarly to franchise businesses - such as Dairy Queen and Denny's. As with for-profit businesses, the parent organization will copyright its name and sign a licensing agreement with the chapter, which is responsible for carrying out its mission, recruiting new members, and other day-to-day activities.

In most cases, chapter organizations are established under the parent organization's umbrella. In addition to having their own board, they will operate independently.