What is an acceptable overhead cost for a charity?

What does it cost for a charity licensing?

• what i mean is that does it cost to open a charity

• Answer:

  What country are you in? That will make a lot of difference. In the US you start by incorporating in your own state - generally about $500-1000 in lawyer fees and a minimum of $150 in state fees and required publication fees. Then you need to apply to IRS for 501c3 status which means filling out a form 1023 and paying about $850 though when they finally get Cyber Assist going that cost will decrease. Given the complexity of the process and the problems you can have if even a little thing is wrong you are going to need that lawyer again and don't just get any lawyer get one who knows a lot about or specializes in nonprofit issues and IRS dealings. If the state incorporation was done right this should be another $500-1000 and not too much more depending where you are. If the state forms were not done in a way that complies with IRS procedure it can be a good bit more. Also check and see if your state requires charity licensing fees for fund raising. If you are in the US there may well be advantages to NOT calling yourself a charity but rather a nonprofit organization which is what IRS will call you anyway. Talk to a good lawyer on that one before you file your state paperwork. state paperwork can be simple depending on the state - in GA it is very simple for ex but if it is not done to start with in a way that complies with the much more complicated IRS rules you will need to pay more money to redo it and may have gotten yourself into a position where state regulations require things of you that can cause problems. Talk to a live human in your state secretary of state corporations division if at all possible before you start filling things out and listen well. They gave us better advice than the lawyers did