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Q&A #149 – Can a nonprofit use a DBA or trade name?
Like any other business or entity, nonprofit organizations are permitted to conduct their activities under a “trade name” (often referred to as a fictitious name, “doing business as,” or “DBA”) so long as the name is properly registered in the relevant states and reported on the Form 990, charitable solicitation registrations, and other required filings, and the name is available to use without infringing on the trademark rights of others.
VIDEO: Describing Your Mission in the Form 990 | 5-Minute Lessons 4 Nonprofits
SE4N's A. Michael Gellman provides a short lesson on how to approach drafting a nonprofit organization's mission statement and description for the three different parts of the Form 990.
Q&A #143 – Should a nonprofit include the audited financial statement in its annual report?
You can choose to include the audited financial statement in an organization’s annual report provided to members, donors, funders, and the public, but it would not be a wise choice. Audited financial statements, although important, are very long and designed to meet generally accepted accounting principles (GAAP) and other compliance purposes. They do not work as well to “brag” about the organization’s accomplishments.
Q&A #140 – How do nonprofits report a name change to the IRS?
A formal name change must be reported on the organization’s next Form 990 or 990-EZ by checking the “name change” box in Column B on the left side at the top of page 1 and including a state-certified copy of the amendment to the organization’s Articles of Incorporation. Form 990-N filers must instead send a letter or fax with this supporting documentation to the IRS Exempt Organizations Division.
Q&A #139 – Does a nonprofit name change require an amendment to the governing documents?
A nonprofit organization may generally change its name either by amending its Articles of Incorporation and other governing documents, or, alternatively, by registering a “trade name” in the applicable states, often referred to as a fictitious name, “doing business as” name, or “DBA.” While amending the governing documents is not required, it is usually the recommended approach to minimize confusion.
![A Lesson for Nonprofits about Public Perception from the Crisis Text Line Controversy [SUBSCRIBERS-ONLY]](https://images.squarespace-cdn.com/content/v1/5e6ccadfb4659c1d51df14d5/1709903325020-J1C3HBLFN06X624YSYZ4/adem-ay-ik_AuIWeBBM-unsplash.jpg)
A Lesson for Nonprofits about Public Perception from the Crisis Text Line Controversy [SUBSCRIBERS-ONLY]
A controversy involving the nonprofit organization Crisis Text Line’s sharing of anonymized data with a related for-profit entity has been a major topic of conversation recently following a lengthy report by Politico. While the specifics of this situation may be unique, this story is a lesson to all nonprofits that public perception should always be considered as one of the main factors in any decision, and this public perception can be just as important as legal formalities.
The First Page of the Form 990 Is Key to Making a Good First Impression
An organization’s Form 990 is universally recognized as a key source of information by the general public, including constituents, donors, grantors, sponsors, and governments. Yet, I often feel that many nonprofits are not paying enough attention to whether the Form 990 adequately tells the complete story about how hard they work to fulfill their mission.
What I Look For When Deciding to Donate: An Attorney’s Perspective
The unprecedented social, economic, and public health upheaval of the past few months has led many people across the country to make heart-felt charitable donations (to the extent they are financially able to do so). Many would-be donors are looking to support nonprofits working in cause areas that may be unfamiliar to them, such as organizations providing COVID-19 relief, scientific research organizations, and organizations that combat racism.
Q&A #15 – Is it a good idea to switch to filing the Form 990-EZ to save costs?
I have gotten this question a lot over the years and not just during a protracted downturn. The simple short-term answer could be yes, but the longer-term impact might not be what you wanted or expected.