If a nonprofit offers several activities or services under various identities, then the organization may have more than one DBA. An organization that rescues animals, for instance, might have two DBAs: one for its adoption program and one for its spay and neuter program. A nonprofit can strengthen its brand recognition and better promote its offerings to the public by using various DBAs. Can a Nonprofit Have More Than One Name?
A nonprofit may indeed use two names, but only one of them may be its legal name; the other may only be a DBA. It is crucial to remember that a nonprofit’s registered name with the state where it was incorporated serves as its legal name. The nonprofit, on the other hand, employs the DBA for branding, marketing, and other operations that involve the general public.
Your charitable organization’s name cannot be the same as your company’s. You cannot use the same name for both your business and your nonprofit, even if your business is a for-profit entity. This is due to the fact that both the name of your business and the name of your nonprofit organization are registered with the state in which they were created.
You are not required to submit a DBA to the IRS. When submitting your annual tax return (Form 990) to the IRS, you must use the DBA name if your nonprofit organization conducts business under a DBA. You might also need to register your DBA with the state’s office for business registration. This is due to the fact that the use of DBAs is governed by the laws of each state.
In summary, a nonprofit organization may utilize a fictional name, such as a nonprofit DBA, to do business with the general public. If a nonprofit offers several activities or services under various identities, it may have more than one DBA. A nonprofit operating under a DBA must use the DBA name when filing its annual tax return with the IRS. It is vital to note that a nonprofit and a business cannot have the same name.