Do you know how much it will cost to start a 501(c)3 nonprofit including service fees and government filing fees?
Chances are, you’ve had to do some digging to learn the first steps. Due to outdated information on the internet and misleading "low-ball" offers that do not include IRS 501(c)3 tax-exempt status, it's likely your research has led you to more questions than answers.
But, not to worry. In this article we'll break down all the elements of obtaining 501(c)3 status with the IRS and how much it costs.
Obtaining 501(c)3 Tax-exempt Status
501(c)3 tax-exempt status is vital to add credibility to your nonprofit, and it's a vital part of your fundraising strategy as it allows your donors the benefits of tax deductible donations.
If you've been doing research on getting 501(c)3 status with the IRS, then you've probably discovered that the average wait time to receive IRS approval has traditionally been six to ten months, depending on the application. That’s a long time to wait, especially when you would like to start making a difference with your mission.
With our done-for-you nonprofit service you can receive your 501(c)3 status in as little as an average of three to nine weeks, depending on your type of nonprofit and application type.
How Much Does It Cost to File for 501(c)3 Status?
If you plan to file on your own, then there are two fees associated with obtaining your 501(c)3 status. Those fees vary a little bit from state to state, but the fees are generally:
If you’d like to skip the three- to six-month wait time and file using our InstantNonprofit service, our fee is $677. That includes free incorporation and an EIN, an Employer Identification Number that is assigned to a business so it is easily identified by the Internal Revenue Service. And it’s backed by our 100 percent approval rate.
$20 to $182 to file your articles of incorporation with your Secretary of State
$275 to file with the IRS for tax-exempt status
What does that rate mean?
It means we’ve received approval on 100 percent of all of our 501(c)3 nonprofit applications.
We offer the fastest web-based nonprofit application system, supported by a human concierge every step of the way. After we receive your initial information, our expert personal-concierge professional will guide you through the rest of the process via phone or email. Once all the proper forms are prepared, we’ll send the final draft IRS Form 1023 package to you as a PDF for your approval.
And then, after you’ve approved and signed the forms, we’ll express ship everything straight to the IRS along with your filing fee.
Our 100 percent approval rate wasn’t achieved by accident: Our expert assistants work diligently to make sure every detail is in order, so there will be no delays and no hassles.
What Do You Need for Your 501(c)3 Nonprofit Application?
Not incorporated yet? Not a problem. We’ll get you set up with your state and obtain your EIN (also known as a tax ID). Our 1023 filing services include:
Verification of Business Name Availability
Preparation and Filing of Articles of Incorporation and Supporting Documents
Personalized Bylaws (as applicable)
Federal Tax ID (EIN) Obtainment Service
Provide & Append IRS-required “Dissolution” and “Charitable Purpose” Clause
Completion of Form 1023 and Obtain IRS Approval of 501(c)3 Tax-Exempt Status
Creation of IRS-Friendly Compensation Policy
Creation of IRS-Friendly Conflict of Interest Policy
Creation of IRS Form 1023 Narrative of Activities with All Requirements
Board of Directors Decision/Resolution Document Download
IRS Form 5768 for 501(h) Election (as applicable)
We’ll take care of the details so you can continue to serve your community and raise funds.
If you end up as one of the one out of twenty IRS 501(c)3 submissions to be asked for "additional information" on the way through the process, don't worry! We’ll handle any questions posed by the IRS and provide requested documentation - and then you’ll receive your IRS approval letter in the mail. Cue the party 😉
And while you're waiting for that IRS letter, you can use your momentum to keep building. You’ll have access to useful guidance, tools, and training to focus on your mission. Our customers often rave about how their 501(c)3 IRS approval letter showed up quickly, they didn’t deal with any complex paperwork, and they were able to focus on the programs to serve their communities and raise money quicker.
Are you ready to start your nonprofit? If so, the best way to go from confusion to clarity on what it takes and how to do it successfully is with our free 10 day Nonprofit Bootcamp training. You can sign up here.
How Much Does it Cost to Start a Nonprofit? 501(c)3 Express
Have you been researching 501(c)3 status? Watch the video to know more about the costs associated with Starting a Nonprofit