Google Apps Premier that is ... (emphases mine)
About groups - Google Apps Help
... As a Google Apps administrator, you can create and manage groups for your entire domain. If you enable the user-managed groups service (available for Google Apps Premier Edition and Education Edition)...So we can't add it to our free family Google App.
The free version of Google Apps doesn't show up on the main page any more. It's still around though, hanging off Business Apps page (nonprofit is there too). I imagine it's a pain for Google to (non) support.
If the business version were $25 a user I'd pay for it, but $50/year/user is steep for what my family does.
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