Legal Question in Business Law in Utah

Can Non-Profit Hold DBAs

Can officers of a non-profit charity corporation own DBA entities under the umbrella of the non-profit?

Example: Non-profit 501c(3) ''A'' has a name change and becomes a for-profit corporation. The new name ''B'' becomes a non-profit corporation 501c(3). Corporation ''A'' have programs that they run and are funded by donations and grants. Public records show these programs as DBAs or for-profit corporations owned by officers. Grants applications show these as programs owned by the non-profit corporation. Donor materials show this also.

Does this sound like normal operating procedures for a large charity organization that has never had anyone on their board of directors other than the original founders. The accountant is also a board member.

If not, what can a citizen do to bring this to light?


Asked on 12/09/03, 5:36 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Can Non-Profit Hold DBAs

Officers and directors of a not-for-profit corporation can hold interests in for-profit entities. A not-for-profit corporation can also own interests in a for-profit corporation, and many do in one form or another. So long as the interests are disclosed and the not-for-profit stays within the bounds of its charter, there is nothing wrong.

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Answered on 12/09/03, 5:51 pm


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