Is there a way to create sub-folders or sub-events

I like iPhoto very much but my big complaint has always been that there is no way to create a sub folder or sub event. Or has this changed and I just can't see how to do it.
I have about 6,000 pictures in my iPhoto library and a large number of them are "Home and Family". What I really want is to be able to create folders or events within the "home and Family" folder or event. So for example I open the Home and Family event (or folder) and there are sub folders for each year or each part of the family etc. Organizing and looking for photos would be far easier if this is possible.

I think I must be going senile. I tried dragging an existing album/folder into another but it will not go in. I tried creating a new folder then dragging it to an existing folder. That wouldn't go in. I tried selecting the folder I want as the parent folder then creating a new folder. That was created outside and I can't get it into the parent folder. I tried creating an empty folder on the desktop and dragging it into the pictures of the parent folder. That didn't work.
I don't know what else to try.
I realize I may be asking a stupid question but can somebody please tell me how to actually put one folder inside another?

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