B. A feeder organization is a tax-exempt organization whose purpose is to provide food to underprivileged children. A. A feeder organization is a division of a tax-exempt organization and it is not subject to the Federal income tax. 10. Which of the following statements is correct? A. A feeder organization is a division of a tax-exempt organization and it is not subject to the Federal income tax. B. A feeder organization is a tax-exempt organization whose purpose is to provide food to underprivileged children. C. A feeder organization is a taxable organization whose purpose is to provide reduced cost meals to its employees that are excluded from the employees gross income. D. Only a. and b. are correct. E. None of the above are correct