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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 118649
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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We are a 501C3 and are brining in a partner under our

Customer Question

We are a 501C3 and are brining in a partner under our umbrella. Do we need to file a fictitious DBA for the partners business name? Funds come in to the name of the partner and we need to send letter back for donations. How is the best way to take in a partner under your 501C3?
Submitted: 2 years ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 2 years ago.

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

This all depends, do you want them to operate under your 501c name or do you want them to operate independently? There are multiple ways to do this and you have selected one way of doing this, but the DBA has to file a tax return showing income and then writing off all donations. The other way is to enter into an agreement with them to charter them as part of your 501c and they come under your name and file their 990 tax return under your name with their separate tax ID number as a separate group chartered under your main umbrella, it is all up to how you want to do it and you have not explained much about that.

Customer: replied 2 years ago.
We are in the same field of education and substance awareness! The partner sit's on the board, it truly is a non-profit working with us. We are a church and they would become a ministry of the church too. Monies will have recorded through the main name and tax ID, we want to have a relationship so monies going out will be from our accounts too.
Expert:  Law Educator, Esq. replied 2 years ago.

Thank you for your reply.

So if they are going to act as a ministry of the church, you can do as you are doing, with a DBA and they have their own Tax ID and then they donate to you and you provide a letter of donation. Your alternative is they can form their separate corporation under 501c and you would be the parent owner of that non-profit and they would come under your rules and bylaws via a contract with you (charter) which they sign agreeing to be bound to your rules and bylaws. They would then be their own tax exempt organization who answers to you under your charter and they would file their own 990 or 990N form (if they make less than $50,000 a year) and would operate as part of your main entity.