To start a 501c3 in Massachusetts, first start a nonprofit according to state rules. Then apply for 501c3 status with the IRS. The average nonprofit CEO makes over $120,000 per year.
Steps to Form a 501(c)(3)
Take these steps:
- Name your nonprofit.
- Choose a registered agent.
- Select board members and officers.
- Adopt bylaws and conflict policy.
- File articles of organization.
- Get an EIN.
While Massachusetts provides a template, it does not meet IRS 501(c)(3) requirements. Our SureStart service prepares articles meeting IRS rules. Massachusetts does not require filing bylaws with the state but they are required by law.
Cost of Filing
How much does it cost to file for a 501c3 in Massachusetts?
While small organizations may pay only a $275 fee, larger ones may pay up to $600 plus attorney fees, which can cost up to $15,000. According to marketplace data, the average 501(c)(3) application costs $597.50. The primary expense is the IRS filing fee, which depends on projected annual gross receipts. This tiered fee structure reduces costs for smaller nonprofits. The fee is non-refundable, even for denied applications.
The IRS offers two forms – the 1023 EZ and the standard 1023. The 1023 EZ has a $275 filing fee and is for organizations with less than $50,000 in annual revenue. The standard 1023 takes 3-6 months for processing and costs $600.
To complete the 501(c)(3) application, use the online previewer or editor. Enter contact details and required information. Apply checkmarks to indicate answers. Qualifying organizations are exempt from federal income tax but must still file returns. The average processing time is 2-4 weeks for the 1023 EZ and up to a year for the standard 1023.