Skip to content
English
More support
  • There are no suggestions because the search field is empty.

Do Fiscal Sponsorships Need a DBA or Trade Name with Paramount Impact?

What Is a Fiscal Sponsorship?

Fiscal sponsorship is a partnership where an established 501(c)(3) nonprofit, like Paramount Impact, extends its tax-exempt status to a charitable project, allowing it to receive tax-deductible donations and grants without forming a separate nonprofit. In this arrangement, Paramount Impact, a 501(c)(3) public charity founded in 2024, manages administrative tasks such as compliance, accounting, and financial reporting, while project leaders focus on their mission, such as community development or youth empowerment. A common question that arises is whether fiscally sponsored projects need a Doing Business As (DBA) or trade name to receive checks made out to their project’s name rather than Paramount Impact’s.

Understanding DBA or Trade Name in Fiscal Sponsorships

A Doing Business As (DBA) or trade name is a registered alias that allows an organization to operate under a name different from its legal name. In the context of fiscal sponsorship, a DBA enables a sponsored project to receive checks, donations, or grants written to the project’s name (e.g., “Youth Art Collective”) instead of the fiscal sponsor’s legal name (e.g., “Paramount Impact”). This can enhance branding, donor recognition, and operational clarity for the project.

With Paramount Impact’s Model A (Comprehensive Fiscal Sponsorship), the sponsored project operates as a program of Paramount Impact without a separate legal entity. Because the project is not an independent nonprofit, it relies on Paramount Impact’s 501(c)(3) status and Employer Identification Number (EIN) for all financial transactions. Registering a DBA or trade name is often necessary to ensure that checks made out to the project’s name can be legally deposited and processed by Paramount Impact’s bank.

Does a Fiscal Sponsorship Need a DBA or Trade Name?

Yes, a DBA or trade name is typically required for a fiscally sponsored project to receive checks made out to its project name instead of Paramount Impact. Here’s why and how it works:

  • Banking Requirements: Banks often require that checks match the legal name on the account or a registered DBA associated with it. Without a DBA, checks made out to the project’s name (e.g., “Youth Art Collective”) may be rejected by the bank if the account is under “Paramount Impact.”

  • Donor Convenience: Donors may prefer to write checks to the project’s name for branding or recognition purposes. A DBA ensures these checks are valid and can be deposited without issues.

  • Branding and Clarity: A DBA reinforces the project’s identity, making it easier for donors, grantors, and the community to recognize the project while still operating under Paramount Impact’s legal structure.

For example, a project called “Youth Art Collective,” fiscally sponsored by Paramount Impact, wants to receive donations for free art workshops for underserved youth. By registering “Youth Art Collective” as a DBA under Paramount Impact, donors can write checks to “Youth Art Collective,” and Paramount Impact can deposit them seamlessly into its bank account for the project’s use.

How to Register a DBA or Trade Name with Paramount Impact

Paramount Impact streamlines the process of setting up a DBA or trade name for fiscally sponsored projects. Here’s the typical process:

  1. Discuss with Paramount Impact: Contact the Paramount Impact team at team@paramountimpact.org to express your project’s need for a DBA. The team will confirm alignment with the project’s mission and Paramount Impact’s goals.

  2. Choose a Project Name: Select a unique name for your project that reflects its mission (e.g., “Youth Art Collective”). Paramount Impact will verify that the name is available and complies with state regulations.

  3. Register the DBA: Paramount Impact handles the DBA registration with the appropriate state or local authorities (e.g., the Arizona Corporation Commission for projects in Arizona). This may involve filing paperwork and paying a nominal fee, which Paramount Impact typically manages or advises on.

  4. Update Banking Information: Once the DBA is registered, Paramount Impact notifies its bank to accept checks made out to the project’s name. This ensures smooth financial transactions.

  5. Access the Donor Portal: Project leaders can use Paramount Impact’s secure online portal to track donations, manage expenses (via debit cards or per diem accounts), pay vendors, and view account statements, all under the project’s DBA.

Benefits of Using a DBA with Paramount Impact

Registering a DBA or trade name for your fiscally sponsored project offers several advantages:

  • Donor-Friendly Transactions: Donors can write checks to the project’s name, enhancing trust and recognition.

  • Professional Branding: A DBA strengthens the project’s identity, making it distinct while still under Paramount Impact’s nonprofit umbrella.

  • Seamless Financial Management: Paramount Impact’s portal allows project leaders to monitor funds received under the DBA, ensuring transparency and ease of use.

  • Compliance Assurance: Paramount Impact ensures the DBA complies with state and IRS regulations, reducing administrative burdens for project leaders.

Frequently Asked Questions

  • Can donors still write checks to Paramount Impact? Yes, checks can be made to either Paramount Impact or the project’s registered DBA. Both are valid and will be deposited into the project’s designated funds.

  • Is there a cost to register a DBA? Costs vary by state (typically $10–$100), but Paramount Impact often covers or guides projects through the process. Contact the team for specifics.

  • Does the DBA make the project a separate nonprofit? No, the project remains a program of Paramount Impact under Model A sponsorship and is not a separate legal entity.

  • Can multiple projects have DBAs under Paramount Impact? Yes, Paramount Impact can register multiple DBAs for different projects, each with its own financial tracking in the donor portal.

Get Started with Paramount Impact

A DBA or trade name with Paramount Impact’s Model A fiscal sponsorship makes it easy for your project to receive checks in its own name while benefiting from our nonprofit status and intuitive donor portal. Ready to launch your charitable project? Contact us at team@paramountimpact.org or visit paramountimpact.org to learn how we can support your mission with comprehensive sponsorship and seamless financial management.