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How much does it cost to start a nonprofit?

By Zippia Team - Dec. 9, 2022

It costs anywhere between $275 and $10,248 to start a non-profit. This depends on several factors and on certain decisions you make associated with your non-profit organization.

Here are some factors to consider in terms of costs for a non-profit:

  • The state your non-profit is formed in. Each state has different average costs for starting a non-profit organization.

    Some states that have high average costs include:

    • California - $1,065

    • Delaware - $1,781

    • District of Columbia - $1,480

    Some states that have low average costs include:

    • Arkansas - $487.50

    • Iowa - $457.50

    • Kansas - $502.50

    Do some research into your state to find out the average cost of starting a non-profit there.

  • Articles of Incorporation. This is a process that is very similar to a corporation.

    Incorporation processing fees range between $8 to $1,980, depending on your state and how fast you want to expedite the process.

  • Charitable Registration. In certain states, you must register your non-profit as a charity, and this can accrue an additional fee.

    The registration fee for a charity is between $0 and $425, with an average fee of $85.91.

  • Business Registration. To start a non-profit you must obtain a business license or register as a business in certain states.

    Certain types of non-profits can get this fee waived, however, this also depends on what state you operate in.

    The average business registration fee is $170.38 in the United States.

  • Miscellaneous State Fees. These are state-based fees required in specific situations.

    Miscellaneous state fees include sales tax permits, sales tax exemptions, annual registration, gambling license, name registration, and others.

  • IRS 501(c) Filing - To be recognized as a 501(c) non-profit, you must file the appropriate forms with the IRS and wait on a determination letter. IRS Form 1023 is $600, and Form 1023-EZ is $275.

  • Legal Assistance. Depending on what type of non-profit you are starting, you might need the assistance of a lawyer during the process.

    If you need the assistance of an attorney, legal fees are where you are going to spend the most money in starting your non-profit.

    The typical rate for an attorney in the United States averages between $150 and $500 an hour.

    The amount of time you need a lawyer for this process could total 16 hours or more. Meaning you could be looking at $2,400 to $8,000+ in legal fees.

  • How much does it cost to start a nonprofit?

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