Nonprofit Formation Services
How Much Does It Cost to Start a Nonprofit?
Learn what it costs to start a nonprofit, including state filing fees, Form 1023 and 1023-EZ fees, professional help, and costs that vary by state.
If you are trying to figure out how much it costs to start a nonprofit, there is no single national price that applies to every organization.
Your cost depends primarily on the state where you form, the federal tax-exemption application that applies to your organization, other registrations your activities may trigger, and whether you choose professional help. As of August 13, 2026, the IRS user fee is $275 for Form 1023-EZ and $600 for Form 1023. An Employer Identification Number, or EIN, is free when you obtain it directly from the IRS.
State filing fees are separate and vary by jurisdiction. State tax-exemption filings, charitable-registration requirements, professional services, and optional administrative expenses can add to your total.
The most useful way to build your budget is therefore not to ask for a national average. It is to separate the costs that actually apply to your organization.
How Much Does It Cost to Start a Nonprofit?
Some nonprofit startup costs can be identified precisely. Others cannot be determined until you know where and how your organization will operate.
Here is the clearest national overview:
Cost | What You Can Say Nationally |
State formation | Varies by state |
EIN | $0 from the IRS |
Form 1023-EZ | $275 if eligible |
Form 1023 | $600 |
State tax exemption | Varies; a separate filing may apply |
Charitable registration | Depends on where and how you fundraise |
Professional help | Depends on provider, complexity, and scope |
Federal fee figures checked August 13, 2026. IRS user fees can change and should be reverified before filing.
This is why adding two or three numbers together and calling the result the universal cost to start a nonprofit can be misleading. Your organization may have different state filings, exemption requirements, fundraising plans, governance needs, and professional-service needs from another nonprofit.
It can also help to understand the broader steps to start a nonprofit, because different costs arise at different stages of the formation process.
What Costs Are Actually Required to Form a Nonprofit?
What is “required” depends on your legal structure, jurisdiction, tax-exemption plans, and activities.
A government filing fee is not the same thing as a professional-service fee. Likewise, creating a nonprofit entity under state law is not the same legal event as obtaining federal 501(c)(3) recognition, receiving state tax treatment, or registering to solicit charitable contributions.
Keeping those categories separate makes your nonprofit startup cost much easier to understand.
State Nonprofit Formation Fees
If you are creating a nonprofit corporation, you will generally file an organizing document—often called Articles of Incorporation or a Certificate of Formation—with the appropriate state agency.
That filing usually carries a state government fee, but the amount and filing structure depend on the jurisdiction.
Your nonprofit Articles of Incorporation also deserve attention beyond their filing fee. The document creates the corporation under state law, while its language may also matter when you later seek federal tax-exempt recognition. State formation and federal exemption are related, but they are not the same process.
Not every organization seeking tax-exempt status must use the same legal form, so you should confirm the requirements that apply to the structure you intend to create.
Your EIN Is Free From the IRS
The IRS does not charge you to obtain an EIN directly from the IRS. As of August 13, 2026, the government fee is $0.
You may encounter companies that charge to help you obtain an EIN. That does not make the EIN itself a paid government filing. You are paying the company for its service or assistance.
This is an important distinction whenever you compare nonprofit filing fees: ask who receives the money and what you are paying for.
Federal Tax-Exemption Application Fees
If your organization is seeking recognition under Section 501(c)(3), the federal application can create another government cost.
As of August 13, 2026:
Form 1023: $600 IRS user fee.
Form 1023-EZ: $275 IRS user fee, if your organization is eligible.
The lower Form 1023-EZ fee is not simply a budget option that every founder can choose. The IRS requires organizations to satisfy its eligibility rules before using the streamlined form.
There are also limited circumstances in which an organization may be treated as exempt under Section 501(c)(3) without filing an application for recognition, so it would be too broad to say that every nonprofit must pay either $275 or $600.
State Tax-Exemption and Charitable-Registration Costs
Federal tax-exempt recognition does not automatically resolve every state tax or regulatory requirement.
Depending on your jurisdiction and circumstances, you may need a separate state tax-exemption process. You may also need charitable-solicitation registration if you begin asking residents of certain states for contributions. IRS guidance specifically recognizes these as separate state-law issues.
Approximately 40 states have charitable-solicitation statutes, but the specific rules, exemptions, registration timing, and fees vary. You should not assume that every organization must immediately register everywhere—or that federal 501(c)(3) recognition authorizes fundraising nationwide without further analysis.
Not sure which filings or registrations apply before you spend money? Association GC can help you identify the legal steps your organization may actually need.
How Much Does Form 1023 or Form 1023-EZ Cost?
The current government-fee comparison is straightforward:
Form 1023: $600
Form 1023-EZ: $275, if eligible
Difference in government fee: $325
These figures were checked August 13, 2026 and should be reverified because IRS user fees can change.
The more important distinction is that Form 1023-EZ is not simply the cheaper version of Form 1023.
Your organization must satisfy the IRS financial thresholds and all other eligibility requirements before it may use Form 1023-EZ. The IRS directs applicants to complete the Form 1023-EZ Eligibility Worksheet to determine whether they qualify.
That makes this more than a pricing decision. Choosing the correct federal application is an eligibility question.
For a deeper comparison of the forms and who may use them, see Form 1023 vs. Form 1023-EZ.
How Much Do State Nonprofit Filing Fees Cost?
There is no national nonprofit incorporation fee because nonprofit formation is governed at the state level.
A few current examples show the variation:
Texas: The Texas Secretary of State lists a $25 filing fee for a nonprofit Certificate of Formation.
New York: The New York Department of State lists a $75 filing fee for a domestic not-for-profit Certificate of Incorporation.
Florida: The Florida Division of Corporations currently lists a $35 new-corporation filing fee plus a $35 registered-agent designation fee.
These are examples—not a national benchmark or average.
Depending on the state and the choices you make, you may also encounter charges for name reservation, expedited processing, certified copies, certificates of status, or other administrative services. Some are required in particular circumstances; others are optional conveniences.
If timing matters, you may also want to review how long it takes to start a nonprofit before paying for expedited services.
Always verify the current filing fee with the Secretary of State or equivalent agency in the jurisdiction where you plan to form.
What Other Startup Costs Might You Have?
Government filing fees are only one part of a nonprofit formation budget.
The following expenses may apply, but they should not be treated as universal government requirements.
Registered Agent or Administrative Services
A nonprofit corporation may be required under applicable state law to maintain a registered agent, but that does not necessarily mean you must purchase a commercial registered-agent service.
Whether you need or want a paid service depends on your jurisdiction and circumstances.
Similarly, companies may charge for filing preparation, document retrieval, EIN assistance, or other administrative work. When comparing those charges, separate the underlying government fee from the convenience or service fee you are paying the provider.
Bylaws and Governance Documents
Your organization may also spend money preparing bylaws, policies, resolutions, and other governance materials.
You may prepare some documents internally, use standardized resources, or obtain professional assistance. The cost depends heavily on how much customization your organization needs.
Well-designed nonprofit bylaws can address how your organization will actually make decisions, conduct meetings, assign authority, select officers, and govern itself. Governance complexity may also increase when you are choosing your nonprofit board, particularly if founders, family members, related parties, compensation arrangements, or unusual decision-making structures are involved.
Those issues affect professional scope more than the government filing fee itself.
Accounting and Tax Guidance
Some organizations choose to involve a CPA, accountant, bookkeeper, or tax professional during formation or launch.
That may be useful when you need help establishing financial systems, understanding tax-reporting responsibilities, planning compensation, or preparing for future reporting.
These services should be treated as professional or operational expenses—not as universal nonprofit formation fees.
Licenses, Insurance, and Organizational Setup
Your activities may also require licenses, insurance, banking arrangements, accounting systems, technology, or other organizational infrastructure.
Those costs are highly fact-dependent. A nonprofit operating a facility, employing staff, providing specialized services, or conducting regulated activities may have very different startup expenses from an organization with a simpler operating model.
They belong in your broader startup budget, but they should not be confused with the legal filing fees required to create or seek exemption for the organization.
How Much Does Professional Help Cost?
There is no defensible nationwide price for a nonprofit attorney, filing service, accountant, or other professional because different providers are often performing very different work.
A headline price might cover only state formation. Another provider may include formation and EIN assistance. Another may add bylaws or Form 1023-EZ preparation. An attorney engagement may involve legal analysis, customized drafting, federal exemption strategy, governance planning, state registration, or continuing compliance guidance.
Those scopes are not apples-to-apples.
Professional cost can depend on:
the scope of the engagement;
your organization's complexity;
the state or jurisdictions involved;
whether Form 1023 or Form 1023-EZ applies;
the level of governance customization required;
unusual programs, revenue streams, or activities;
founder, compensation, or related-party issues;
where you plan to fundraise; and
whether post-formation compliance planning is included.
That is why the more useful question is not simply, “How much does a nonprofit attorney cost?”
Ask instead: What work is included in the price, and does that work match what your organization actually needs?
Association GC's nonprofit formation services are designed around the legal and governance decisions behind formation rather than treating every organization as the same filing project.
What Makes a Nonprofit More Expensive to Start?
Several factors can change your nonprofit formation cost.
1. Your state and jurisdictional footprint
State incorporation fees differ. Separate state tax-exemption procedures may apply. Fundraising in additional jurisdictions can create charitable-registration obligations. The more jurisdictions involved, the more filings and analysis you may need.
2. Whether you qualify for Form 1023-EZ
The current federal user-fee difference between Form 1023 and Form 1023-EZ is $325. But eligibility—not price preference—determines whether your organization may use the EZ route.
3. Your organizational type and activities
A straightforward charitable organization may require less analysis than an organization with unusual programs, complex revenue arrangements, specialized activities, or legal questions outside a standard formation pattern.
4. Your governance needs
Customized bylaws, founder-control questions, related-party relationships, compensation structures, board design, and conflict procedures may require more judgment and drafting than a straightforward governance arrangement.
5. Where and how you plan to fundraise
Soliciting contributions can trigger state registration requirements. Organizations raising money in multiple jurisdictions may have a larger regulatory footprint than organizations operating and fundraising primarily in one state.
6. How much professional assistance you want
Paying someone to transmit a filing is different from paying for customized legal, tax, accounting, or governance advice. Broader professional scope generally means you are purchasing more than administrative convenience.
7. Optional administrative services
Expedited processing, certificates, copies, name reservations, and similar services can add smaller costs depending on the state and your preferences.
Is the Cheapest Way to Start a Nonprofit the Best Option?
Not necessarily—but the most expensive option is not automatically the best option either.
The right question is: What are you paying for?
DIY
With a DIY approach, you primarily pay the applicable government fees and invest your own time in researching requirements and preparing filings.
That can be appropriate for a comparatively straightforward organization when the founders are comfortable identifying the correct state filings, federal application route, governance requirements, and registration obligations.
Your main cost savings come from doing the research and preparation yourself.
Online Filing Service
An online filing service generally adds a standardized preparation or administrative-service fee to the government costs.
This can be useful when you already understand the organizational decisions you want to make and primarily need convenience with document preparation or submission.
The important issue is scope. State incorporation, federal tax-exemption assistance, bylaws, registered-agent services, and other tasks may be included, optional, or sold separately depending on the provider.
Nonprofit Attorney
With an attorney, you pay the applicable government fees plus professional fees for whatever legal advice, drafting, and judgment are included in the engagement.
Legal guidance can become more valuable when your organization involves unusual governance arrangements, specialized activities, founder or related-party issues, compensation questions, customized governing documents, uncertain exemption issues, or multistate obligations.
An attorney is not universally required to start a nonprofit. The question is whether your circumstances call for individualized legal judgment rather than standardized preparation.
Compare what you are paying for, not just the headline price.
A low-cost filing option may be entirely appropriate when your decisions are already clear. But if you are still deciding which entity, exemption process, governance structure, or registrations actually fit your organization, the larger issue may no longer be paperwork.
That is where legal help with nonprofit formation can address the decisions behind the filings.
Do Nonprofit Costs Continue After Formation?
Yes, potentially.
Formation cost and ongoing operating or compliance cost should be treated as separate parts of your budget.
After formation, your organization may face expenses related to annual state reports, charitable-registration renewals, Form 990-series preparation where required, bookkeeping or accounting, insurance, licenses, and professional compliance assistance.
Which expenses apply depends on your jurisdiction, activities, organizational structure, and reporting obligations. Federal recognition also does not eliminate applicable state reporting and registration requirements.
For a deeper discussion of what happens after formation, see ongoing nonprofit compliance.
Frequently Asked Questions About Nonprofit Formation Costs
Can you start a nonprofit for free?
Sometimes certain individual steps are free, but you should not assume the entire formation process will cost nothing.
An EIN obtained directly from the IRS is free. State entity-formation filings may carry fees, and organizations seeking IRS recognition may have a federal application fee depending on the application required. Limited categories of organizations may be treated as exempt without filing an application for recognition.
How much does it cost to start a 501(c)(3)?
There is no single national total.
Your cost to start a 501(c)(3) can include a state formation fee, the applicable federal exemption-application fee, state tax or charitable-registration costs where applicable, and any professional help you choose to use.
As of August 13, 2026, Form 1023 costs $600 and Form 1023-EZ costs $275 for eligible organizations.
Does an EIN cost money?
No. The IRS does not charge for an EIN obtained directly from the IRS.
A third party may charge you for helping with the application, but that is a service fee rather than an IRS fee.
Is Form 1023-EZ cheaper than Form 1023?
Yes. As of August 13, 2026, the IRS user fee is $275 for Form 1023-EZ and $600 for Form 1023—a $325 difference.
However, only eligible organizations may use Form 1023-EZ. Meeting one financial threshold alone does not establish eligibility; the IRS requires applicants to complete its eligibility analysis.
Do I need an attorney to start a nonprofit?
Not necessarily.
Many founders can research and complete nonprofit formation steps themselves, particularly when the organization is comparatively straightforward.
Individualized legal guidance may be useful when you have questions about legal structure, governance, related parties, compensation, unusual activities, Form 1023-EZ eligibility, customized documents, fundraising across jurisdictions, or other issues where a generic filing process does not resolve the underlying legal question.
Are there ongoing costs after forming a nonprofit?
Potentially, yes.
Depending on your organization, you may have costs associated with annual state filings, charitable-registration renewals, tax or information-return preparation, bookkeeping, insurance, licenses, governance, and professional compliance assistance.
Those are ongoing operating or compliance costs rather than the initial cost of forming the organization.
Build Your Budget Around the Organization You Are Actually Creating
The useful question is not simply, “What does a nonprofit cost on average?”
It is: Which costs actually apply to the organization you are building?
Some numbers can be identified precisely. As of August 13, 2026, the IRS charges $275 for Form 1023-EZ, $600 for Form 1023, and nothing for an EIN obtained directly from the IRS. Other costs depend on your state, legal structure, exemption route, fundraising footprint, governance needs, activities, and the professional assistance you choose.
That distinction matters because forming the entity, seeking federal tax exemption, addressing state tax treatment, registering to fundraise, designing governance, and maintaining compliance are related—but they are not the same task.
The lowest-cost way to submit paperwork may be appropriate for your organization. But your formation budget should also reflect whether you need help making the decisions behind that paperwork.
Association GC approaches formation as the process of building the legal and governance foundation behind the organization—not merely submitting forms.
Talk with Association GC about your nonprofit formation.
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