Starting a nonprofit can feel overwhelming, especially when you're trying to figure out how much it’ll cost.
The truth is, it’s not just about filing some paperwork and waiting for approval. There are state fees, federal forms, and a few hidden costs that most folks don’t see coming. If you're just getting started, knowing what to expect can help you avoid surprises and stay focused on what really matters, your mission.
In this guide, we’re going to walk through the costs of filing for 501(c)(3) status in every state. We’ll also break down the federal filing fees, registration requirements, and those little things that add up fast, like website costs or legal help. By the end, you’ll have a clear picture of what it takes to start your nonprofit the right way.
501c3 tax-exempt status
Before we dive into fees and forms, it’s worth understanding what 501(c)(3) actually means. A 501(c)(3) is a type of nonprofit that gets tax-exempt status from the IRS. That means your organization doesn’t pay federal income taxes, and in most cases, your donors can write off their gifts on their taxes too.
But tax exemption isn’t automatic. You have to apply for it, and it takes more than just a mission statement. The IRS wants to make sure your nonprofit is set up to help the public, not to make money for you or anyone else. That’s why there are strict rules about what you can and can’t do, especially when it comes to things like political activity or how you spend donations.
There are a few types of nonprofits out there, but 501(c)(3) is the one most people go for. It covers charities, educational groups, religious orgs, and other causes that serve the greater good. If your goal is to raise money through donations, apply for grants, or partner with larger institutions, having this status is a must.
Federal IRS filing fees for 501c3 status
Once your nonprofit is legally formed in your state, the next big step is applying for federal tax-exempt status through the IRS. This is where most people get a little nervous, but don’t worry, it’s more about paperwork than perfection. The IRS has a couple of forms, and which one you use depends on how big your organization is (or plans to be).
Form 1023
This is the full application. It’s detailed and a little time-consuming, but it’s the standard form for most nonprofits, especially if you expect to raise over $50,000 a year. As of now, the filing fee is $600, and you’ll need to provide a lot of info: your mission, your finances, your leadership structure, and how you plan to use the money you raise. It sounds like a lot (and it is), but it’s manageable when you take it one step at a time.
Form 1023-EZ
If your nonprofit is small, meaning you expect to bring in under $50,000 a year and have less than $250,000 in assets, you might qualify to use the EZ version. It’s way shorter, online-only, and much easier to fill out. The fee is $275, and the approval process is usually faster too. Not every organization qualifies, but if you do, it’s a solid way to save both time and money.
Form 1024
This one’s less common. It’s mostly used for nonprofits that don’t fall under the 501(c)(3) umbrella, like social clubs or business leagues. So if you're applying for 501(c)(3), you probably don’t need to worry about this form.
The good news? Once you’re approved, you’re officially recognized as tax-exempt, and that opens doors to fundraising, grants, and bigger partnerships. But first, you’ve got to get through the forms.
501c3 state filing fees by state
Before you can apply for federal tax-exempt status, you need to officially form your nonprofit in your home state. This step is called incorporation, and every state handles it a little differently. Some make it easy. Others… not so much. But one thing they all have in common? A filing fee.
State filing fees are what you pay to file your articles of incorporation, the legal document that creates your nonprofit. Depending on where you live, the cost can be as low as $8 or over $200. Some states also offer expedited processing for an extra fee if you’re in a hurry. And a few might charge annual renewal fees to keep your nonprofit in good standing.
Here’s a general idea of what to expect:
Note: These are just a few examples. Each state has its own rules, timelines, and optional services.
It’s a good idea to check with your state’s Secretary of State website for the most accurate and up-to-date fee schedule. And remember, filing in your home state is usually best. Incorporating in a “cheap” state doesn’t always save money in the long run, especially if you're operating elsewhere.
Charitable solicitation registration and compliance
Once you’ve filed your articles and submitted your IRS paperwork, there’s one more piece that often gets overlooked, charitable solicitation registration. If you're planning to ask people for donations (online, in person, through events, or even by mail), many states require you to register first.
Each state handles this differently. Some charge a small fee to register, others let you file for free, and a few require annual renewals with updated paperwork. The cost typically ranges from $0 to $100+, depending on the state and the size of your nonprofit.
You might be thinking, “But I’m just starting out, do I really need this?” The answer is: probably. Even if you’re only fundraising in one state, or even if it’s just a small campaign, some states still require registration. And if you plan to raise money in multiple states (especially online), the rules get stricter and the requirements pile up.
This process helps protect donors and adds transparency to your fundraising. It’s also one of those things that’s easy to skip, until a letter shows up in the mail reminding you (or worse, fining you) for not filing.
A good rule of thumb? Check your home state’s rules before your first fundraising push. And if you're unsure about multistate fundraising, Harness partners with experts who can guide you through it, without all the legal headaches.
Other hidden or additional costs to consider
Starting a nonprofit isn’t just about filing paperwork. There are a bunch of smaller, behind-the-scenes costs that can sneak up on you if you’re not prepared. They’re not always required, but they’re often necessary if you want to grow, look professional, and avoid problems later.
Incorporation and administrative expenses
You might decide to use a legal service to help with your state or IRS filings. Those services can cost anywhere from $100 to $1,000+, depending on what they include. Some states also require you to have a registered agent, a person or company that receives official documents on your behalf. That can cost another $100 to $300 per year.
Don’t forget about notary services or publication fees (yep, a few states make you publish a notice in a newspaper when you incorporate). Those are small costs, but they add up.
Operational startup costs
Even the leanest nonprofits need a few basics to get started. A website and domain can cost between $20 and $200, depending on whether you build it yourself or hire someone. You’ll probably want some nonprofit software to handle things like donor management, fundraising, and communication, that’s where Harness can be a real asset.
You’ll also want to think about branding and marketing, things like logos, brochures, email platforms, or even social media tools. And if you plan to grow fast, you might need a little help, whether that’s part-time staff or dedicated volunteers.
These costs might feel like a lot, especially at the beginning. But when you plan ahead and make smart choices, you’ll set your organization up for long-term success.
Cost-saving strategies for new nonprofits
If you're watching every dollar (and let’s be honest, most of us are), the good news is that there are smart ways to keep your startup costs low, without cutting corners on the important stuff.
Use Form 1023-EZ if you qualify
The full IRS application costs $600 and takes a while to process. But if your organization brings in less than $50,000 a year and has under $250,000 in assets, you might be able to file Form 1023-EZ instead. It’s simpler, faster, and only costs $275. That one decision can save you money and months of waiting.
Skip the legal fees (if you’re comfortable)
If your structure is simple and you feel confident reading instructions, you can absolutely file your state and IRS forms yourself. There are tons of free guides and templates out there. Just be sure to follow your state’s specific requirements. That said, if it feels overwhelming, it’s okay to get help, just make sure you’re not paying for more than you need.
Consider fiscal sponsorship
Not quite ready to start your own nonprofit? A fiscal sponsor is an established nonprofit that lets you operate under their umbrella. You can accept donations, apply for grants, and start projects, all without setting up a 501(c)(3) right away. Just be aware they usually take a percentage of your funds as an admin fee.
Use free and discounted nonprofit tools
Here’s where you can save big: software. Many companies offer free or low-cost tools for nonprofits, email marketing platforms, CRM systems, even website builders. And with Harness, you get all-in-one fundraising support and donor engagement tools designed specifically for nonprofits like yours. It’s like adding a whole team, without the full-time cost.
Saving money doesn’t mean doing less, it just means being smart about what you invest in.
Summary: Planning your nonprofit formation budget
Starting a nonprofit isn’t free, but it doesn’t have to break the bank either. Between state filing fees, IRS forms, and startup costs like websites or software, you can expect to spend a few hundred to a few thousand dollars to get things up and running. The exact number depends on where you're located, what services you use, and how hands-on you want to be.
Here’s a quick recap of the main costs:
- State filing fees: Usually between $30–$150
- IRS application: $275 (EZ) or $600 (Full Form 1023)
- Charitable registration: Varies by state, often around $0–$100
- Optional costs: Legal help, software, branding, website, etc.
It’s a lot to think about, but when you plan ahead and understand what each step involves, it feels way more manageable. This isn’t just paperwork, it’s laying the groundwork for something meaningful.
Budget what you can, ask for help when you need it, and focus on building the kind of organization your community needs.
Taking the next step
Starting a nonprofit takes work, and let’s be honest, it’s not always clear where to begin. But once you understand the filing fees, paperwork, and startup costs, you’ll feel a lot more confident taking the next step. And the truth is, you don’t have to figure it out alone.
At Harness, we’ve helped hundreds of nonprofits get off the ground, raise their first dollars, and grow into something powerful. Whether you're still piecing together your paperwork or already planning your first campaign, we’re here to help, with the tools, strategy, and support to make it easier.
