The cost to start a 501c3 varies based on the organization’s size and complexity. Small organizations pay a $275 user fee, while larger organizations pay $600 plus attorney fees up to $15,000. The average 501c3 application cost is $597.50, and completing the 50-100 page Form 1023 typically takes over 100 hours.
Formation Packages and Services
Our 501c3 formation packages start at $1,799 plus filing fees. We offer comprehensive services to prepare registrations, ensuring accuracy and saving you valuable time. Our specialists are well-versed in the language and information required by the IRS, providing personalized assistance throughout the process.
New Jersey Registration and Application Process
Once New Jersey processes formation documents, complete the 501c3 application process with the IRS. Filing documents for a nonprofit in New Jersey costs $75, with an additional $3.50 convenience fee if filed online. Utilize the New Jersey 501c3 Lookup Table to check for existing nonprofits and ensure your preferred name is available.
Tax-Exempt Status Application Timeline and Fees
The 1023-EZ form typically takes 2-4 weeks for processing, while Form 1023 may take 3-6 months, potentially up to a year. Expect to pay a $275 filing fee for the simpler 1023-EZ form and a $600 filing fee for the more complex 1023 form.
Other Considerations and Costs
Filing articles of incorporation with the state costs approximately $125, with additional fees for online filing. Domestic nonprofit entities in New Jersey have a $75 filing fee. It is important to choose a related and unique name, file a Certificate of Incorporation, prepare bylaws, and hold a board meeting to establish your nonprofit successfully.
Protect founders and navigate the complexities of setting up a nonprofit by considering a sole member structure or exploring fiscal sponsorship options if initial funding is a concern. First-year costs typically include a federal application fee under $1,000 and professional fees ranging from $2,000 to $4,000.
Overall, anticipate startup costs between $2,000 and $5,000 for establishing a 501c3 organization, with the IRS often taking weeks to months to approve and issue a determination letter.