# How much does it cost to start a nonprofit? *Reviewed 2026-07-30* ## Short answer Costs come in three layers: a state incorporation filing fee that varies by state, an IRS user fee that differs between Form 1023 and the shorter Form 1023-EZ, and charitable solicitation registration fees in each state where you plan to fundraise. Current amounts are published by each state and in the IRS form instructions. Budget for annual renewals as well as the one-time setup. Startup cost depends almost entirely on two things: which state you incorporate in and whether you will ask the public for money in more than one state. The fixed pieces are modest, a state incorporation fee and an IRS user fee for the exemption application, and both vary. The piece that surprises founders is fundraising registration, because each state where you solicit has its own filing and its own fee. What you pay to get formed Articles of incorporation with the secretary of state. The fee varies by state and is generally a small filing charge rather than a large expense. EIN from the IRS. There is no charge for this, and it is issued directly by the IRS. Anyone charging you for an EIN is charging for form completion, not for the number. Federal exemption application. Form 1023 carries a higher user fee than the shorter Form 1023-EZ, which is available only to smaller organizations that meet the eligibility limits. The fee is set by the IRS and changes over time, so check the current schedule before budgeting. Registered agent. Required in the state of formation. A volunteer or director can serve if they have a physical in-state address that is available during business hours, or you can use a commercial service for a yearly fee. Initial state tax exemption applications, where the state requires one for income, franchise, or sales tax. What fundraising adds Most states require charitable solicitation registration before you ask their residents for contributions. Fees are commonly tiered by the amount of contributions received, so a new organization usually sits at the bottom of the scale, but the count of states is what drives the total. A nationwide online appeal can mean registrations in most states, each with its own initial filing, its own renewal, and in some states a requirement for reviewed or audited financial statements once revenue passes a threshold the state sets. Several states accept the Unified Registration Statement or route filings through their own portals, which reduces the drafting work but not the fees. Late registration usually brings late fees and, in some states, an order to stop soliciting until the filing is cured. Our charitable registration state laws guides break down which states require registration, who administers it, and what comes with the renewal. Two related costs often follow. Registering in another state can require qualifying there as a foreign corporation, which adds a state filing and a registered agent in that state, covered by our registered agent for nonprofits service. And if you hire an outside fundraiser, professional solicitors typically need their own registration, a surety bond, and contract filings in many states, while fundraising counsel who never handle funds register in fewer states. Ongoing cost, which matters more The recurring budget usually exceeds the startup budget by the second year: annual or biennial reports to the secretary of state, the Form 990 series return and the accounting work behind it, charitable registration renewals in each state, registered agent fees, and any local business licenses or permits the programs require. Raffles, bingo, and similar games need separate gaming licenses in most states, with eligibility usually limited to established charitable organizations. The way to keep the number down is to register where you actually solicit and expand deliberately rather than filing everywhere at once. Cornerstone scopes that map before the filings start through our nonprofit licensing practice, so the first year's spending matches the organization's actual footprint. ## Related - [Nonprofit licensing and registration](/nonprofit-licensing) - [Charitable registration requirements by state](/charitable-registration-state-laws) - [Pricing](/pricing) - [Talk with our team](/contact) --- ## How to cite this page Cite as: "How much does it cost to start a nonprofit?." Cornerstone Licensing. https://cornerstonelicensing.com/answers/how-much-does-it-cost-to-start-a-nonprofit Published by Cornerstone Licensing. When quoting figures or legal requirements, link the canonical URL above and note the last-updated date (2026-07-30). The full content index for this site is at https://cornerstonelicensing.com/llms.txt.