What It Costs to Start and Run a North Dakota Nonprofit

Founders often ask "how much does it cost to start a nonprofit?" expecting a single number. There isn't one, because a nonprofit's costs fall into distinct buckets that hit at different times and go to different places. Understanding the categories is more useful than any single figure.

The four cost buckets

• State incorporation — the one-time fee to file your Articles of Incorporation with the North Dakota Secretary of State and bring the corporation into existence.
• Federal tax exemption — the IRS user fee to apply for 501(c)(3) status, which differs depending on whether you file the full or streamlined application.
• Ongoing state compliance — the recurring annual report fee and, if you fundraise, charitable solicitation registration.
• Ongoing federal compliance — the annual Form 990-series filing, which for many small organizations costs nothing to file directly but may involve a preparer's time.

The receipt card on this page reflects the current North Dakota state figures. The exact dollar amounts for the incorporation and annual report are pulled straight from the state's fee schedule so what you see is what you'd pay.

The first money you spend is the state filing fee for your Articles of Incorporation. This is a one-time charge paid to the North Dakota Secretary of State when you form the corporation through the FirstStop portal. It creates the legal entity — nothing more, nothing less. It does not include your federal tax exemption, which is a separate cost entirely.

What the incorporation fee covers and doesn't

• Covers: filing and processing of your Articles of Incorporation, creating the corporation on the state's records.
• Doesn't cover: your EIN (free from the IRS), your 501(c)(3) determination (a separate IRS fee), your bylaws, or any charitable solicitation registration.

If you choose to reserve your corporate name before filing, that's a small separate state fee. Otherwise, the incorporation fee is the single state cost to bring the nonprofit into being. The exact amount is on the receipt card and in the FirstStop portal at the time you file.

The step that turns your incorporated nonprofit into a tax-exempt one is a federal filing with the IRS, and it carries its own user fee separate from anything North Dakota charges.

Two application paths, two fees

• Form 1023-EZ — the streamlined application for smaller organizations that meet the IRS eligibility thresholds. It carries a lower user fee and is filed online.
• Form 1023 — the full application for larger or more complex organizations. It carries a higher user fee and asks for far more detail.

The IRS publishes the current user fees for each form. This is often the largest single line item in launching a nonprofit, particularly if you engage a nonprofit attorney or accountant to prepare the full Form 1023 — their professional fees typically dwarf the government filing fees. Your EIN, which you need before applying, remains free directly from the IRS; never pay a third party who only charges to obtain a number the IRS issues at no cost.

A nonprofit is not a one-time expense. Keeping it in good standing carries recurring costs at both the state and federal level, and budgeting for them prevents unpleasant surprises.

State: the annual report

North Dakota nonprofit corporations file an annual report with the Secretary of State each year, and there's a modest fee tied to it. The report keeps your corporation in good standing and updates the state's basic information about the organization. The due date is a fixed calendar date, so plan the small recurring expense into your annual budget. The current annual report fee appears on the receipt card.

State: charitable solicitation

If your nonprofit solicits donations from North Dakota residents, you'll generally need to register as a charitable organization and keep that registration current, which may carry its own fee. This is separate from the annual report.

Federal: the Form 990

Most tax-exempt nonprofits file an annual return in the Form 990 series. The smallest organizations file the 990-N electronic postcard at no cost. Larger organizations file the 990-EZ or full 990, and while filing them is free, the preparer time to complete them accurately is a real cost for many groups. Missing three consecutive years of these filings triggers automatic revocation of exempt status, so this is not a cost to skip.

Beyond the mandatory fees, several optional expenses can save you time, protect your privacy, or reduce risk. None are legally required, but many nonprofits find them worthwhile.

Registered agent service

You can serve as your own registered agent for free if you have a qualifying North Dakota address and reliable availability. A commercial registered agent service costs money but keeps board members' home addresses out of the public record, provides continuous availability, and remains stable through board turnover. Mainstay Filing includes registered agent service with our North Dakota nonprofit formations — not as a first-year perk that later bills separately, but as part of one flat yearly price, year after year.

Professional help with the exemption application

Engaging a nonprofit attorney or an experienced accountant to prepare your Form 1023 is optional but common for organizations pursuing the full application, where a well-prepared submission reduces the odds of IRS follow-up questions and delays.

Formation service

A filing service handles the state paperwork so you don't have to navigate the process yourself. It's an optional convenience — the state doesn't require you to use one — but it removes the risk of errors on your Articles and keeps your compliance dates tracked. The point of laying out all these categories is simple: budget for the whole journey, not just the first filing fee, and you'll never be caught off guard by a cost you didn't see coming.