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Dba Two Entities Under Single 501c3

Corporate Law Discussions

Dba Two Entities Under Single 501c3

Postby Tihalt » Sun Mar 12, 2017 7:17 pm

Is it possible to have a single legal entity with an already granted 501c3 status by the IRS create two DBAs such that the non profit program can be expanded? We created a non profit corporation and received 501c3 status for our program Teaming Up For Teens. It provides support to homeless teens. We've now got a second program for homeless veterans and would like 501c3 status without shelling out another $400+. Can we rename the corporation to something generic(e.g. Homeless Initiatives) and create two separate DBAs for each program and still retain our original 501c3 status? OR will we have to reapply for 501c3 status for the new program?
Tihalt
 
Posts: 40
Joined: Mon Feb 24, 2014 6:26 pm

Dba Two Entities Under Single 501c3

Postby Shaariq » Wed Mar 15, 2017 12:18 pm

Most states allow nonprofit organizations to use dbas and often would require registration.  The IRS does not mind use of dbas by 501(c)(3) organizations. In fact, the IRS database for 501(c)(3) organizations has a space for the "Primary Name of the Organization" as well as for other names. https://www.irs.gov/pub/irs-soi/eo_info.pdf(bottom of page 1). You asked, "Can we rename the corporation to something generic(e.g. Homeless Initiatives) and create two separate DBAs for each program and still retain our original 501c3 status?"  Yes, you may and after you change the name, you would contact the IRS. The IRS exemption determination letters are standard. You can see in a sample determination letter at http://www.mcsb.us/Documents/IRS%20501c3%20Approval%200001.pdf on page three under the heading "Notify Us On These Matters"

--Start of Excerpt ---

If you change your name, address, purposes, operations or sources

of financial support, please inform our TE/GE Customer Account

Services Office at the following address: Internal Revenue Service,

P.O. Box 2508, Cincinnati, Ohio 45201. If you amend your

organizational document or by-laws, or dissolve your organization,

provide the Customer Account Services Office with a copy of the

amended documents. Please use your employer identification number

on all returns you file and in all correspondence with the Internal

Revenue Service.

--- End of Excerpt --- Harvey Mechanic

Attorney at Law [email protected]

P.S. This response is intended to be a general statement of law, should not be relied upon as legal advice and does not create an attorney/client relationship. For me to consider your individual situation and how the law applies, I would need to gather more information.  
Shaariq
 
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Joined: Fri Jan 03, 2014 11:40 am


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