The one-time costs to form
Most of what you spend to start is a short list of filing fees:
- State incorporation fee. From about $20 in Michigan to $125 in Pennsylvania. This files your Articles of Incorporation.
- IRS user fee. $275 for the shorter Form 1023-EZ, or $600 for the full Form 1023.
- EIN. Free. Get it straight from the IRS and never pay a third-party site.
- Charitable registration. Most states require it before you fundraise, from nothing for the smallest orgs up to about $250.
- Newspaper notice. A couple of states, like Pennsylvania and Georgia, still make you publish a notice, which runs roughly $40 to $300.
Add it up and a bare-bones DIY start is usually $300 to $900, depending mostly on your state and which IRS form you file.
The cheapest and most expensive states
Your state drives most of the difference. Michigan is among the lowest, at $20 to file plus free charitable registration. States with a newspaper requirement, like Pennsylvania and Georgia, sit at the higher end. Our state start-up guides give the exact fees for each one.
First-year operating costs
Beyond forming, plan a little for the basics: a bank account (often free for nonprofits), modest insurance if you run programs or events, a domain and website, and the tools you use to run day to day. This is where Ember fits: a free tier for small nonprofits keeps your software cost near zero while you find your feet.
What you can skip at the start
Plenty of founders start without a lawyer, and that is normal for a straightforward 501(c)(3). You can also skip paid software early on. Spend on the filings you must, and add the rest as you grow.
A budgeting tip
Keep every receipt from these startup steps. They are organizational costs, and having them recorded makes your first tax filings and your board reporting much simpler later.