Umbrella Organization

An umbrella organization is an association of (often related, industry-specific) institutions, who work together formally to coordinate activities or pool resources. In business, political, or other environments, one group, the umbrella organization, provides resources and often an identity to the smaller organizations. Sometimes in this kind of arrangement, the umbrella organization is to some degree responsible for the groups under its care. Compare to franchises and subsidiaries.

There may be many reasons for establishing/joining an umbrella organization:

• The ability to carry out activities which could not be accomplished alone, due to
  • Economies of scale;
  • A better pool of experts and experience;
  • Shared apprenticeship and exchange of know-how;
• A sense of community and support that makes people and corporations derive utility from multilateral and shared activities;
• An increased brand/public awareness.
• Legality of pursued action(s).