How much does it cost to start a 501(c)(3)?

Total one-time costs range from $275 to $1,200+. The minimum is a $275 IRS Form 1023-EZ filing fee plus your state incorporation fee ($0-125). If you file the full Form 1023, the IRS fee is $600. Optional costs include a registered agent ($100-300/year), legal assistance ($1,500-5,000), and charitable solicitation registration ($0-300 per state).

Can I start a nonprofit for free?

Not entirely. The IRS charges a minimum of $275 for Form 1023-EZ. Some states charge $0 for incorporation (like Kansas), but most charge $25-125. You can minimize costs by filing everything yourself, using free accounting software like Alignmint's Starter plan, and skipping optional costs like a registered agent or attorney.

Is the IRS Form 1023 fee refundable if denied?

No. The IRS filing fee ($275 for 1023-EZ or $600 for full 1023) is non-refundable regardless of the outcome. This is why it's important to prepare a thorough application — use our Form 1023 Preparation Checklist to avoid common mistakes that lead to denial.

What are the ongoing costs of running a nonprofit?

Annual costs include state annual report fees ($0-75), charitable solicitation renewal ($0-300 per state), Form 990 preparation ($0 with self-service software to $2,000+ with a CPA), registered agent renewal ($100-300), and accounting software ($0 with Alignmint Starter to $500+/month with other platforms). Total ongoing costs for a small nonprofit: $200-3,000/year.

How Much Does It Cost to Start a Nonprofit in 2026?

One of the first questions every aspiring nonprofit founder asks: how much is this going to cost? The answer depends on your state, which IRS form you file, and whether you hire professional help.

Here's the honest breakdown — every cost, what's required vs. optional, and how to minimize your total spend.

One-Time Startup Costs

State Incorporation Fee: $0–$125+

Filing articles of incorporation with your Secretary of State is the first expense. Fees vary widely:

State	Filing Fee	Processing
Kansas	$0	Online, 2-3 days
Kentucky	$8	Online, 1-2 days
Mississippi	$25	Mail, 5-10 days
California	$30	Online, 1-2 days
Texas	$25	Online, 2-5 days
New York	$75	Mail, 4-6 weeks
Illinois	$50	Online, 1-2 days
Massachusetts	$35	Online, 2-3 days

These are representative examples — fees change. Use our Nonprofit Startup Cost Calculator for the current fee in your state, or see the full state-by-state guide.

Some states also offer expedited processing for an additional fee ($25-100+) if you need faster turnaround.

IRS Filing Fee: $275 or $600

The IRS charges a non-refundable fee to process your tax-exempt application:

Form 1023-EZ: $275 — For organizations with projected gross receipts under $50,000/year and assets under $250,000
Form 1023 (full): $600 — For all other organizations

Most new nonprofits qualify for the $275 Form 1023-EZ. Check the IRS eligibility worksheet before assuming you need the full form.

Both forms are filed through Pay.gov. For preparation guidance, see How to File IRS Form 1023.

EIN Application: Free

Getting your Employer Identification Number costs nothing. Apply online at IRS.gov and receive it instantly. See How to Get an EIN.

Total Minimum One-Time Cost

Expense	Minimum	Maximum
State incorporation	$0	$125+
IRS Form 1023-EZ	$275	—
IRS Form 1023 (full)	—	$600
EIN	$0	$0
Total (1023-EZ path)	$275	$400
Total (full 1023 path)	$600	$725+

Bottom line: You can start a nonprofit for as little as $275 in the cheapest states with Form 1023-EZ.

Optional Startup Costs

Registered Agent: $100–$300/year

Every state requires a registered agent — a person or service that receives legal documents on your organization's behalf. Options:

Board member or officer — Free, but their home address becomes public record
Commercial registered agent service — $100-300/year for a dedicated business address and document forwarding

Many founders start by serving as their own registered agent and switch to a commercial service later for privacy.

Legal Assistance: $1,500–$5,000+

You don't need a lawyer, but one can help. Common situations where legal help is worth the cost:

Complex organizational structure (multiple programs, partnerships, affiliations)
Unusual exempt purposes that may face IRS scrutiny
Real estate holdings or significant assets at formation
Prior Form 1023 denial

For a straightforward small nonprofit, you can absolutely file everything yourself using our Nonprofit Startup Checklist and Form 1023 Preparation Checklist.

Charitable Solicitation Registration: $0–$300+ per state

If you'll fundraise from the public, 41 states require registration. Fees range from free to $300+. Some states exempt small organizations (typically under $25,000 in annual revenue).

Important: If you fundraise online, you may technically need to register in every state where you have donors, not just your home state. Start with your home state and expand as your fundraising grows.

Domain and Website: $12–$50/year

You'll need a domain name for your organization. Budget $12-20/year for a .org domain.

Ongoing Annual Costs

Once you're up and running, these are the recurring costs most nonprofits face:

Expense	Cost Range	Required?
State annual report	$0–75	Yes (most states)
Charitable solicitation renewal	$0–300/state	Yes (if registered)
Registered agent renewal	$0–300	Yes
Form 990 preparation	$0–2,000+	Yes
Accounting software	$0–900+/month	Effectively yes
D&O insurance	$500–2,000/year	Recommended

Form 990 Preparation: $0–$2,000+

Your annual IRS filing is the biggest ongoing compliance cost. Options:

Self-service with software — $0 with Alignmint (generates 990-ready reports) or $200-500 with standalone 990 filing software
CPA preparation — $500-2,000+ depending on complexity and your area

For new small nonprofits, self-service is often sufficient. Alignmint's fund accounting includes a Form 990 builder that maps your accounts directly to 990 line items.

Accounting Software: $0–$900+/month

This is where costs vary the most across platforms:

Platform	Monthly Cost	What's Included
Alignmint Starter	$0	Fund accounting, donor CRM, volunteer management, events, AI
Aplos	$59-159/month	Accounting + basic CRM
QuickBooks	$30-200/month	Generic accounting (no fund tracking)
Blackbaud	$10,000+/year	Enterprise suite (quote-only pricing)

Alignmint's Starter plan is free for nonprofits with up to $100,000 in annual donations — which covers the vast majority of new organizations. See pricing →

The Fiscal Sponsorship Alternative

If the startup costs feel steep for your project's stage, fiscal sponsorship is worth considering:

Path	Upfront Cost	Ongoing Cost	Time to Start
Own 501(c)(3)	$275-1,200+	$200-3,000/year	3-12 months
Fiscal Sponsorship	$0-500 (application fee)	5-15% of revenue	2-4 weeks

For a project expecting $50,000 in year-one revenue, the fiscal sponsor fee (at 10%) would be $5,000 — compared to $1,000-3,000 in startup and compliance costs for your own 501(c)(3). The break-even point is typically $150K-300K in annual revenue.

InFocus Ministries is a fiscal sponsor that works with mission-driven projects of all sizes. Learn more in Fiscal Sponsorship for New Projects or compare paths in Fiscal Sponsorship vs. 501(c)(3).

Get Your State-Specific Estimate

Every state is different. Our free Nonprofit Startup Cost Calculator gives you a personalized estimate based on your state, organization type, and whether you'll use Form 1023-EZ or the full Form 1023.

Ready to start? Schedule Your Free Setup | Use the Free Startup Checklist

Related:

How to Start a Nonprofit: The Complete 2026 Guide — Step-by-step from mission to operations
How to Start a 501(c)(3): Step-by-Step Guide — Focused guide on the IRS application
How to Incorporate a Nonprofit: State-by-State Guide — Filing fees, agencies, and requirements for all 50 states
Fund Accounting for Nonprofits — Why new nonprofits need fund accounting from day one