Navigate to the Control Panel > Website > Website Modules > Document Library.
Click Options
The Folder Defaults section allows you to define defaults that will be applied to all new folders as they are created. These settings can then be customized for each folder.
Check the Allow subfolders within subgroups option if you want to allow chapters, districts and regions to create their own subfolders within the top-level folder that’s defined for each subgroup.
Check Allow custom tags on documents if you want to allow administrators and coordinators to create their own tags. If this option is not checked, only master tags can be assigned to a document.