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For new nonprofits

Nonprofit startup budget: what it really costs to start

In the first year, starting a nonprofit costs $283 to $500 in government fees with the IRS short form, Form 1023-EZ. With the full Form 1023, it costs $608 to $825. Your tax ID number (EIN) is free, and the startup cost calculator adds up your state's fees.

Startup costs at a glance

State incorporation fee$8 (Kentucky) to $225 (Alabama)
IRS Form 1023-EZ$275 (or $600 for the full Form 1023)
EINFree, direct from the IRS
Registered agent$0 if you or a board member serves; a paid service is optional
Charitable registration$0 to $100 for a new small nonprofit; 13 states have none
Newspaper notice (PA, GA, NE)Paid to the newspaper, where required
First-year government fees$283 to $500 with Form 1023-EZ; $608 to $825 with Form 1023

The one-time costs to form

Starting costs come down to a short list of filing fees:

  • State incorporation fee. From $8 in Kentucky to $225 in Alabama. This files your Articles of Incorporation, and in some states it includes a required first report or name reservation.
  • 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. 37 states ask charities to register before they fundraise, and 26 of those offer an exemption. For a new small nonprofit, the fee runs from nothing to $100.
  • Newspaper notice. Pennsylvania, Georgia and Nebraska make you publish a notice of your incorporation in a newspaper, and Arizona may, depending on the county. In Georgia the law sets it at $40, paid to the paper; elsewhere the newspaper sets the price.

Add it up and the government fees come to $283 to $500 in the first year with Form 1023-EZ. The full Form 1023 makes it $608 to $825. Your state and your IRS form decide where you land.

The cheapest and most expensive states

Kentucky is the cheapest state: $8 to incorporate and free charitable registration, or $283 in the first year with Form 1023-EZ. Alabama is the most expensive: $225 to incorporate and $500 in the first year. Its $225 is a $200 filing plus a required $25 name reservation. Pennsylvania, Georgia and Nebraska also add the cost of a newspaper notice. See every state's fees, with each state's source, in our cost to start a nonprofit in every state table. Our state start-up guides walk you through the steps.

First-year operating costs

Beyond forming, plan a little for the basics: a bank account (ask whether the bank waives fees for nonprofits), modest insurance if you run programs or events, a domain and website (once you have 501(c)(3) status, Google Workspace for Nonprofits gives you free email on that domain), and the tools you use to run day to day. This is where Ember fits. Its tools are free if your budget is under $50K a year, so they cost you nothing while you find your feet.

What you can skip at the start

You do not need a lawyer to form a straightforward 501(c)(3). You can also skip paid tools 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.

The Ember tool for this

Ember Spark

Ember Spark is a free, step-by-step checklist for starting a nonprofit, and each step explains why it matters. In Ember it drafts your bylaws, conflict-of-interest policy and Form 1023 narrative for you to finish, and puts your Form 990, and your state annual report where your state requires one, on Ember's compliance calendar. Turn on Ember Compliance and it emails you a reminder before each filing that has a set date. Unlimited users on every tier.

General information for people starting a nonprofit, not legal or tax advice. Rules change; confirm specifics with the IRS, your state, or a qualified professional.

Sources: IRS user fees · irs.gov, EIN · Kentucky Secretary of State, fees · Alabama Secretary of State, fee schedule · Nebraska Secretary of State, fees · Pennsylvania Department of State, nonprofit filings. Read 25 September 2026. Other state figures come from each state's own site, read in August and September 2026. The cost to start a nonprofit in every state table lists every state's source.

Common questions

How much does it cost to start a nonprofit?

In government fees, $283 to $500 in the first year with Form 1023-EZ, or $608 to $825 with the full Form 1023. That covers the state filing fee ($8 to $225) and the IRS user fee ($275 or $600). Charitable registration is $0 to $100 for a new small nonprofit, and the EIN is free.

Can you start a nonprofit for free?

Not entirely, but it is inexpensive. The EIN is free, and some states charge nothing to register as a charity. But every state charges to incorporate, from $8 to $225. The IRS charges $275 or $600 when you apply for 501(c)(3) status.

Do I need a lawyer to start a nonprofit?

No. You can file everything yourself for a straightforward 501(c)(3). A short review by a professional can help with the Articles wording, but it is not required.

What is the cheapest state to start a nonprofit in?

Kentucky. It costs $8 to incorporate there, and charitable registration is free, so first-year government fees come to $283 with Form 1023-EZ. Alabama costs the most, at $225 to incorporate. Pennsylvania, Georgia and Nebraska also require a paid newspaper notice.

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