How Much Does It Cost to Start a Nonprofit in Virginia
Key Takeaways
The mandatory government cost to start a 501(c)(3) nonprofit in Virginia ranges from $360 to $775.
Virginia state incorporation through the State Corporation Commission (SCC) costs a flat $75.
Your highest variable cost is the IRS application fee: $275 (Form 1023-EZ) or $600 (Form 1023).
Charitable solicitation registration with VDACS costs $10 (exempt) or $100 (standard, first year).
Getting an EIN from the IRS is always free.
Ongoing yearly costs include a $25 SCC annual report and a VDACS renewal fee of $30 to $325.
Starting a nonprofit in Virginia involves more moving pieces than most founders expect, but knowing all the fees up front is what separates a smooth launch from a budget-busting surprise.
If you are planning to launch a nonprofit in the Commonwealth, the first real question isn't "how do I do this?" It's "what will it actually cost me?" Virginia is a moderately priced state for nonprofit formation. It's not as inexpensive as Texas, but it's nowhere near the higher end of states that charge steep incorporation or solicitation fees.
The total you'll pay depends on three things: how big your organization's projected budget is, whether you qualify for the IRS's streamlined exemption application, and whether you handle the filings yourself or pay for professional help.
Below is a full breakdown of every fee you should plan for, sourced directly from the Virginia State Corporation Commission (SCC), the Virginia Department of Agriculture and Consumer Services (VDACS), and the IRS.
Mandatory Government Fees to Start a Nonprofit in Virginia
These are the non-negotiable costs that every Virginia nonprofit must pay to legally form and become tax-exempt.
1. Articles of Incorporation — $75
To create your nonprofit as a legal entity, you file Form SCC819 (Articles of Incorporation of a Virginia Nonstock Corporation) with the Virginia State Corporation Commission. The filing fee is a flat $75, and online filings through the SCC's Clerk's Information System (CIS) portal typically process within one business day.
Under Virginia law, your articles must state whether your corporation will have members, and no income or dividend may be distributed to directors, officers, or members except as reasonable compensation for services rendered. If you plan to apply for 501(c)(3) status, the SCC's Nonprofit Organization Toolkit recommends including the IRS-required purpose and dissolution clauses at this stage. Skipping them now means paying an amendment fee later to fix it. For a closer look at writing this document correctly the first time, read Beacon Nonprofit’s how to write articles of incorporation for a nonprofit, which walks through what to include.
Note: The $75 fee is paid to the Arizona Corporation Commission to process your filing. This fee covers only the state filing and does not include professional assistance. If you want help preparing and filing your documents, Beacon Nonprofit offers formation support starting at $99, plus the $75 state filing fee. In other words, the $99 covers guidance and assistance with the nonprofit formation process, while the $75 is paid separately to the state.
2. Federal Employer Identification Number (EIN) — $0
Every nonprofit needs an EIN before it can open a bank account or apply for tax-exempt status. You get this directly from the IRS using Form SS-4, and it is completely free.
3. IRS 501(c)(3) Tax-Exempt Status — $275 or $600
This is where the biggest cost swing happens, and it depends entirely on your organization's projected size.
| IRS Form | Eligibility | Fee |
|---|---|---|
| Form 1023-EZ | Projected gross receipts ≤ $50,000/year and assets under $250,000 | $275 |
| Form 1023 | Larger or more complex organizations | $600 |
Both are filed through Pay.gov and the fee is non-refundable, so it's worth preparing a complete application the first time. Incomplete or inaccurate 1023 applications are one of the most common reasons the IRS delays or rejects approval.
4. Charitable Solicitation Registration — $10 or $100
Before you ask the Virginia public for donations, you must register with VDACS's Office of Charitable and Regulatory Programs under the Virginia Solicitation of Contributions Law.
- Exempt organizations (certain religious, educational, or very small charities) file Form 100 for a $10 fee.
- Standard organizations file Form 102 and pay a $100 initial registration fee.
Some organizations, such as those soliciting under $5,000 annually or certain religious and educational institutions, may qualify for the exemption. Check the VDACS exemption list before assuming you need the standard filing. This step is part of a broader requirement covered in Beacon Nonprofit’s guide on charitable solicitation registration, which explains how these rules vary by state.
5. State Income and Sales Tax Exemption — $0
Once the IRS approves your 501(c)(3) status, Virginia corporate income tax exemption is automatic. If you also want exemption from state sales tax, you'll file Form NP-1 with the Virginia Department of Taxation at no cost.
Total Mandatory Cost Summary
| Step | Agency | Cost |
|---|---|---|
| Articles of Incorporation | Virginia SCC | $75 |
| EIN | IRS | $0 |
| 501(c)(3) Application | IRS | $275 or $600 |
| Charitable Solicitation Registration | VDACS | $10 or $100 |
| State Tax Exemption | Virginia Dept. of Taxation | $0 |
| Minimum Total | ~$360 | |
| Maximum Mandatory Total | ~$775 |
Optional and First-Year Costs to Budget For
These aren't required by law for every organization, but most founders end up paying at least one of them.
- Registered agent: Virginia requires a physical in-state address to receive legal notices. You can serve as your own agent for free or hire a commercial service for roughly $100 to $300 per year.
- Name reservation: If your board isn't ready to file yet but you want to lock in your name, the SCC lets you reserve it for 120 days for a $10 fee (Form SCC631).
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Ongoing Annual Compliance Costs in Virginia
Forming the nonprofit is only the first cost. To stay in good standing, budget for these recurring fees every year:
- SCC Annual Report Fee — $25. Due by the last day of your incorporation anniversary month.
- VDACS Charitable Solicitation Renewal — $30 to $325. Calculated based on your organization's gross contributions for the year; larger nonprofits pay more.
- IRS Form 990 — $0. The federal informational return has no filing fee, though professional preparation may cost extra if your financial situation is complex.
Missing these renewals can result in your nonprofit losing good standing with the state or its ability to legally solicit donations, so it's worth adding these dates to a compliance calendar early.
Ready to File With Confidence
Virginia's nonprofit formation costs are predictable once you know where each dollar goes: a flat $75 to the SCC, a variable IRS fee that depends on your projected size, and a VDACS registration fee scaled to your fundraising plans. The real cost driver is not the state paperwork but whether you qualify for the streamlined Form 1023-EZ, so nail down your projected budget early.
For the complete filing sequence, from incorporation through your first annual report, read Beacon Nonprofit's guide on how to start a nonprofit organization in Virginia in 12 steps. Beacon Nonprofit provides clarity, step-by-step guidance, and expert support so you can focus on your mission instead of chasing forms and deadlines.
Disclaimer: All costs and fees listed in this guide are estimates based on currently available information and are subject to change. For the most current and accurate pricing, always verify directly with the official sources: the Virginia Secretary of State, the Virginia Comptroller of Public Accounts, and the IRS before filing.
- Virginia State Corporation Commission – Nonstock Corporations — Official overview of Articles of Incorporation filing requirements, forms, and fees for Virginia nonstock corporations
- Virginia State Corporation Commission – Clerk's Information System (CIS) Online Filing — Online portal for submitting Articles of Incorporation, annual reports, and other business filings electronically
- Virginia State Corporation Commission – Annual Report Requirements — Official information about annual report filing deadlines, requirements, and fees for Virginia corporations
- Virginia Department of Agriculture and Consumer Services – Office of Charitable and Regulatory Programs — Official source for charitable solicitation registration requirements under Virginia’s Solicitation of Contributions Law
- Virginia Department of Agriculture and Consumer Services – Charitable Solicitation Exemption Information — Details organizations that may qualify for exemption from standard charitable solicitation registration requirements
- Virginia Department of Taxation – Nonprofit Sales Tax Exemption (Form NP-1) — Official application form and guidance for nonprofits seeking Virginia sales and use tax exemption
- IRS – Tax-Exempt Organization Search — Verify an organization’s federal 501(c)(3) tax-exempt status and determination information
- IRS – Form 990 Series — Official information about annual federal reporting requirements for tax-exempt organizations
Frequently Asked Questions
Not entirely, but you can keep costs as close to the minimum as possible. If you qualify for Form 1023-EZ and file the exempt Form 100 with VDACS, your mandatory startup costs may be around $360 ($75 SCC filing fee, $275 IRS Form 1023-EZ fee, and $10 VDACS exemption filing fee). Many founders cover this through personal funds or a small early fundraiser before officially soliciting donations.
It's more about paperwork than capital. The hardest parts are usually recruiting a compliant board of directors, drafting bylaws that satisfy both Virginia law and IRS requirements, and completing the Form 1023-EZ eligibility worksheet correctly, not the fees themselves.
Yes, with limits. Virginia nonstock corporation law permits reasonable compensation for services rendered, but no dividend or income may otherwise be distributed to directors, officers, or members. The IRS also requires compensation to stay reasonable compared to similar roles at similar organizations, or the nonprofit risks its tax-exempt status.
No, it isn't legally required. Many small nonprofits file the SCC incorporation documents, EIN application, and Form 1023-EZ themselves. Legal help becomes more valuable if your organization is larger, has complex funding sources, or needs the full Form 1023 instead of the EZ version. The IRS fee is $275 for Form 1023-EZ and $600 for the full Form 1023.
State incorporation through the SCC's online portal usually processes within a business day when filings are complete and accurate. The IRS timeline is longer: Form 1023-EZ approvals often take a few weeks to a couple of months, while the standard Form 1023 can take several months depending on application volume and completeness.
Yes. The SCC annual report requires a $25 filing fee, and VDACS charitable solicitation registration must be renewed annually when applicable. VDACS renewal fees vary based on the organization's charitable contributions.
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