How Much Does It Cost to Start 501c3?

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Costs Associated with Applying for 501(c)(3) Status

  • Small organizations pay a $275 user fee.
  • Larger organizations pay $600 plus attorney costs up to $15,000.
  • Filing articles of incorporation with the state typically costs $100.
  • The Form 1023 filing fee is $600.
  • Organizations expecting less than $50,000 in annual earnings can file Form 1023 EZ for $275.
  • Expect to pay $1,000 to file for tax-exempt status at federal and state levels.
  • Other costs include attorney and public presence for fundraising, $2,000-$5,000 total.
  • The IRS often takes weeks to months to approve and send a determination letter.

Maintenance of 501(c)(3) Status

  • 501(c)(3) status lasts until revoked by IRS or organization ceases to operate.

IRS Review Process

  • The IRS often takes weeks to months to review applications and send determination letters.
  • With a compelling reason, quicker determination is possible.

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