Wednesday, 27 August 2014

"How much it will cost (totally) to our group to start a non- profit in pennsylvania plus filing for 501c3 tax status?"

Question

"How much it will cost (totally) to our group to start a non- profit in pennsylvania plus filing for 501c3 tax status?"



Answer

The expenses are usually more than most people expect. The user fee submitted along with the application for tax-exempt status filed with the IRS (Form 1023) is $850 ($400 if you expect to take in less than $10,000 of gross receipts annually), and the Articles of Incorporation filed with the the PA Department of state is $125.

Obtaining and maintaining charitable status is complex. The forms are long and require a lot of information. Along with form 1023, several other documents must be drafted and policies adopted.

I would recommend that you budget around $5000 of start-up costs, including attorney's fees, and I highly recommend that you engage an attorney to assist you.

Feel free to contact me with any questions at (215) 367-5110.



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