Initial and Ongoing Costs for Nonprofit Startups
On average, starting a nonprofit will cost between $500 and $1,000 at first. You need to cover incorporation, 501(c)(3) application, agent fees, fundraising, and rent. More ongoing costs include salaries, program expenses, services. Prioritize essentials first, find affordable options. Separate organizational and personal money. With smart budgeting, make your nonprofit sustainable.
We provide you with detailed information on what it costs to start a nonprofit, and to help you figure out your starting expenses to ensure success down the line. Initial fees and startup costs for nonprofits may still be overwhelming for unprepared groups. Get organized early to help reduce any stress. When planning to launch a nonprofit, consider expenses such as:
- Incorporation fees
- 501(c)(3) fees
- filing fees
- legal fees
- office space and equipment
- staff and salaries
- fundraising costs.
On average, the entire process (from state filing, binder documents, federal application for exemption, all the way to completion) can run upwards of $3,000.
Frequently Asked Questions
What are the typical expenses involved in starting a nonprofit?
Steps to Start a Nonprofit
Before we dive into how to start a nonprofit, make sure you read an in-depth checklist. Now that we understand nonprofits better, learn how to start one in 10 steps:
- Define your purpose and values
- File paperwork to incorporate
- Apply for federal tax-exempt status
- Form a board of directors
- Set up accounting systems, policies and procedures
- Fundraise
- Hire staff
- Lease office space
- Start programs and services
- Evaluate and improve.
Starting a nonprofit requires careful financial planning and sufficient resources to cover initial expenses. By understanding the average costs involved and addressing common questions, aspiring nonprofit founders can set realistic expectations and navigate the process more effectively.
Detailed Startup Costs
Typically costs to set up a 501(c)(3) involve first year and annual costs. The IRS form 1023 fee is under $1000. Expect $2000-4000 for attorney and accountant. Budget 40 hours with them. Annually file financial reports like IRS form 990. Pay around $1000 for a CPA. This covers legal requirements to exist, not finding board members or running it.
Costs vary depending on your goals and needs. File with the state to register, using articles of incorporation and bylaws. Rent office space, buy equipment and supplies, hire staff. Expenses add up. Carefully plan finances and consider costs.
We provide detailed startup cost information to budget well and ensure later success. Ranges from $283-$700+. Includes:
- incorporation fees, $0-$250 depending on state
- 501(c)(3) application fee $275-$600
- and more.