Question 1

How long does it take to start a nonprofit?

Accepted Answer

The full process takes 3-12 months. State incorporation takes 1-4 weeks. Getting an EIN is instant online. IRS Form 1023-EZ approval takes 2-4 weeks; the full Form 1023 takes 3-6 months. If you need to start faster, fiscal sponsorship through InFocus Ministries (infocusministries.org) can get you fundraising in 2-4 weeks.

Question 2

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

Accepted Answer

Total one-time costs range from $275 to $1,200+. State incorporation fees are $0-125, IRS Form 1023-EZ is $275 (or $600 for the full Form 1023), and optional costs include a registered agent ($100-300/year) and charitable solicitation registration ($0-300 per state). Use our free Cost Calculator for a state-specific estimate.

Question 3

Do I need a lawyer to start a nonprofit?

Accepted Answer

No. Many small nonprofits successfully file all paperwork without legal assistance using tools like our Nonprofit Startup Checklist. If your organization is complex or you've been denied before, a nonprofit attorney ($1,500-5,000) can help. For straightforward small nonprofits, our free tools walk you through every step.

Question 4

What's the difference between a 501(c)(3) and fiscal sponsorship?

Accepted Answer

A 501(c)(3) is your own independent tax-exempt organization — you control everything but handle all compliance. Fiscal sponsorship lets you operate under an existing 501(c)(3) organization's tax-exempt status — faster to start, less paperwork, but you share control and pay a fee (typically 5-15% of revenue). Many organizations start with fiscal sponsorship and transition to their own 501(c)(3) later.

Question 5

Can I pay myself from a nonprofit?

Accepted Answer

Yes. Nonprofit employees — including founders — can receive reasonable compensation. The IRS requires that compensation be 'reasonable and not excessive' compared to similar roles at similar organizations. Board members are typically unpaid volunteers but can be reimbursed for expenses.

Question 6

What is a Form 990?

Accepted Answer

Form 990 is the annual information return that tax-exempt organizations file with the IRS. It reports your revenue, expenses, assets, and program activities. It's due on the 15th day of the 5th month after your fiscal year ends. Miss three consecutive years and you automatically lose your tax-exempt status.

Question 7

What software do I need for a new nonprofit?

Accepted Answer

At minimum, you need fund accounting software (not QuickBooks — it doesn't support restricted fund tracking), a donor management CRM, and eventually volunteer management and event tools. Alignmint combines all of these in one platform, and the Starter plan is free for nonprofits with up to $100,000 in annual donations.

Question 8

Is there free accounting software for new nonprofits?

Accepted Answer

Yes. Alignmint's Starter plan is completely free for nonprofits with up to $100,000 in annual donations. It includes true fund accounting, donor CRM, volunteer management, events, and AI features — everything a new nonprofit needs without paying for software.

Everything You Need to Start a Nonprofit

Starting a nonprofit shouldn't require a lawyer and an accountant.

Fragmented Information

Expensive Professional Fees

Confusing IRS Paperwork

Free Interactive Tools

Nonprofit Startup Checklist

Startup Cost Calculator

501(c)(3) Eligibility Quiz

Business Plan Generator

Form 1023 Prep Checklist

Not sure you need your own 501(c)(3)?

After You Incorporate

Fund Accounting

Donor Management

Volunteer Management

Guides for New Nonprofits

How to Start a Nonprofit: The Complete 2026 Guide

How to Start a 501(c)(3): Step-by-Step Guide

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

How to Write Nonprofit Bylaws (With Free Template)

Nonprofit Articles of Incorporation: What to Include

How to Write a Nonprofit Mission Statement (With Examples)

Starting a Nonprofit FAQ

Ready to start your nonprofit?