What is the real cost of starting a nonprofit?

This is one of the most practical questions for anyone figuring out how to establish a non profit organization. While there’s no single price tag, you can anticipate costs in three main categories. It’s not just about filing fees; it’s about building a stable foundation.

Mandatory Filing Fees:

These are non-negotiable government fees. You’ll have a state incorporation fee, which can range from $50 to $200+, depending on your state. The most significant fee is typically the IRS application for 501(c)(3) tax-exempt status (Form 1023), which costs either $275 or $600, depending on your organization’s projected annual gross receipts.

Professional Services:

While not mandatory, seeking legal and financial counsel is highly recommended. A lawyer can ensure your articles of incorporation and bylaws are solid, and an accountant can help set up your financial systems correctly. Budgeting for this expertise upfront can save you from costly mistakes down the line.

Initial Infrastructure:

These are the costs detailed in Step 8 and Step 9 of our guide. This includes opening a business bank account, purchasing accounting software, securing a domain name for your website, and making an initial investment in a foundational technology platform. When you’re just setting up a non-profit, strategically choosing an all-in-one system to manage donors and operations can be the most cost-effective decision for long-term growth.

These questions are just the beginning of your journey. The process of starting a nonprofit involves careful planning and execution across multiple fronts.

For a complete walkthrough, dive back into our complete guide: How to Start a Nonprofit in 2026: The Complete 10-Step Checklist.