Charity leaders often come up with creative ways to increase a charity’s cash flow. Although these revenue producing activities are often tangentially related to the charity’s exempt activities, often these activities may be considered commercial or for-profit activities that could jeopardize the charity’s exempt status. One strategy to protect the charity’s tax-exempt status is to conduct such activities through a for-profit subsidiary. The IRS recently released Priv. Ltr. Rul. 201123036, confirming the long-standing position that a charity’s interest in a for-profit subsidiary will not jeopardize exempt status if properly structured.