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In black taskbar at top of screen click on “Structure” and then “Taxonomy”.
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Decide whether your new category should be applied to a Member or an Organisation.
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Next to relevant file category (eg: “Member file category”), click on “add terms”.
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In Title box type name for category you wish to create.
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If you want to you can type a description of the category in “Description” text box.
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Click on “Save” button at bottom left of screen.