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PDF Editor FAQ
How much does it cost to set up a non-profit in the US?
It depends.The first step is to incorporate in your state of choice as a nonprofit corporation. Those filing fees vary from state to state. In Oregon, where I live now, it costs about $100. This will require a board of directors and articles of incorporation. With research on the internet and a few willing volunteers, developing this is free.The second step is completing the application for 501c3 status with the IRS if you want contributions to your organization to be tax deductible. Note that this is not essential to operate as a nonprofit, but it is certainly essential if you hope to raise lots of money from donors.This paperwork is complicated. I have done this once, and we worked with an attorney who was experienced in filing this paperwork. It took about 5-10 hours of his time and about 5 hours of staff time on the organization's side to prepare and submit all of the paperwork.Details from the IRS on preparing and submitting the paperwork:http://www.irs.gov/charities/article/0,,id=96109,00.htmlThis publication in particular provides a good overview:http://www.irs.gov/pub/irs-pdf/p4220.pdfThe fee for application depends on the amount of revenue your organization receives annually. Here's the fee schedule:http://www.irs.gov/charities/article/0,,id=232771,00.htmlIf you're a small organization, with less than $10,000 in receipts, the fee is $400.You could certainly fill out that paperwork yourself if you were looking to save funds. It would just be time-intensive. In this case, the fee is the only cost.Typically, the IRS will respond within 6-10 months - and at that point they usually tell you they need more documentation via a "determination letter". If your initial application is generally satisfactory and only requires a few tweaks, you can operate as a 501(c)3 organization pending completed paperwork.Future steps in establishing your presence as a nonprofit require other efforts, but not necessarily other funds.
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