Typical cost categories
| Cost | What it covers | Paid to |
|---|---|---|
| State incorporation | Creates the state-law nonprofit corporation. | Secretary of State or equivalent agency |
| IRS user fee | Form 1023-EZ or full Form 1023 application. | Federal government through Pay.gov |
| Charity registration | Authorization or registration connected to soliciting donations. | State charity regulator |
| Registered agent | Optional paid provider if an eligible person/address is not used. | Private provider |
| Professional review | Legal, tax, accounting, or filing assistance. | Professional adviser |
| Operations | Insurance, bank fees, website, bookkeeping, permits, and programs. | Various providers |
Illinois example
The Illinois Secretary of State currently lists $50 for Form NFP 102.10. Federal user fees are separate, and Illinois charity-registration requirements can add forms, documentation, and fees depending on the organization’s circumstances.
Ways to control startup cost
- Use official state databases before purchasing a name or branding.
- Recruit a qualified volunteer board before paying consultants to solve governance gaps.
- Use the IRS EIN application directly rather than paying a third party merely to transmit it.
- Prepare organized facts and documents before paying for professional review.
- Consider fiscal sponsorship when the mission needs to operate before a new standalone entity is practical.
Frequently asked questions
Can I start a nonprofit for free?
Some planning and governance work can be done without paying a service, but state formation and federal recognition usually involve government fees. Fiscal sponsorship may be an alternative in some situations.
Is an EIN free?
The IRS provides EIN issuance directly without a federal application fee. Avoid websites that appear governmental but charge only to transmit basic EIN information.
Are government fees included in Start Your Cause pricing?
No. Start Your Cause charges for its tools, document templates, and guidance. State and federal filing fees are paid separately to the appropriate government agency.
Should I pay a registered-agent company?
Not always. Requirements vary. Some founders use an eligible individual or organization; others value the privacy and availability of a commercial provider.
Related nonprofit startup resources
Turn your answers into organized documents
Use the guided Start Your Cause questionnaire to prepare formation templates, governance documents, and a state-specific next-step checklist.
Start the questionnaire →