There are two main steps to starting a nonprofit in New York. First, you need to form your organization with the New York Department of State (DoS). Then, you can obtain state and federal tax-exempt status.
Here’s everything you should know, including how to incorporate your nonprofit, draft bylaws, apply for 501(c)(3) status, and stay compliant year after year. This guide also provides a cost and timeline breakdown so you know what to expect before you file.
New York nonprofit corporation requirements at a glance
- Forming a nonprofit corporation in New York will not automatically make your organization tax exempt.
- Obtain 501(c)(3) status from the Internal Revenue Service (IRS) to operate as a tax-exempt charity.
- You may need to obtain approval from the appropriate governing body before incorporating, depending on your organizational purpose.
- To form a nonprofit, file a Certificate of Incorporation (also known as "articles of incorporation") with the New York Department of State.
- New York requires a minimum of three directors on your nonprofit board.
- After incorporation, hold a meeting to adopt bylaws and address governance structure, officer roles, and voting procedures.
- Register with the New York Attorney General's Charities Bureau if your New York nonprofit owns property, engages in charitable activities, or seeks donations. In this case, you’ll also need to file an annual CHAR500 report.
- The total cost ranges from roughly $375 to $700 or more depending on your organization’s purpose, size, and whether you use professional assistance.
- The full process typically takes two to eight months, with approval from the IRS accounting for most of that time.
How to start a nonprofit in New York: Step-by-step
New York nonprofits are corporations formed to carry out a specific mission, rather than to make a profit. Like other corporations, they’re organized under NY law and carry formal responsibilities, such as record-keeping and other compliance requirements.
You can form a corporation by filing a certificate of incorporation with the New York Department of State, Division of Corporations. Once you’ve created your organization’s legal entity, set it up by registering with federal and state agencies. Here’s how.
Step 1: Choose an available name
New York has a few important nonprofit name requirements.
- It must contain the words, “incorporation,” “corporation,” “limited,” or an abbreviation of those words. (This is only relevant to non-charitable organizations).
- It can’t be deceptively similar to an existing entity registered in New York.
- It can’t imply a purpose your organization doesn't actually serve.
- It can’t include words prohibited by Section 301 of NY Not-for-Profit Corporation (NPC) Law.
Check name availability by doing a New York entity search. The Department of State has a database of currently registered business entities that you can search to see if your desired name is currently in use. LegalZoom’s nonprofit formation service will handle this search for you.
Note: If you're not ready to file, you can hold the name for 60 days by filing a nonprofit name reservation request with the Department of State. The filing fee is $10.
Step 2: Appoint an incorporator and your initial board of directors
An incorporator is simply the person who signs and files the certificate of incorporation. You only need one incorporator and they must be at least 18 years old.
Directors govern your organization. They set policy, approve budgets, and actively oversee the organization’s operations and finances. New York requires at least three directors who are 18 years or older to serve on the board of a nonprofit.
Step 3: Get agency approval (if applicable)
Depending on the purpose of your nonprofit, you may need to get consent from the agency or organization that regulates that activity in New York. Check the list below to see if this applies to you.
If applicable, there are two possible requirements. One, you would need to send the certificate of incorporation to that agency first for approval, and then file the approval along with your certificate to the DoS. Two, you would need to send a certified copy of your certificate to the agency within 30 days of approval from the DoS.
Nonprofit approval agencies
Nonprofit approval agencies
Here are the relevant regulatory bodies for various NY nonprofit industries
This isn’t a full list. If your business purpose wasn’t included, double check Section 404 of NY NPC Law to see if your nonprofit also needs approval or consent.
Step 4: Prepare and file the certificate of incorporation
The certificate of incorporation, also sometimes called "articles of incorporation," is the official document that established your organization’s legal existence in New York.
Be prepared to provide the following information:
- The organization's name.
- Its business purpose. Mainly, is your organization a charitable or non-charitable nonprofit? A charitable nonprofit is one that exists for charitable, educational, religious, scientific, literary, or cultural purposes, including the prevention of cruelty to children or animals.
- A statement on whether or not your organization requires approval from a specific governing agency. And if so, that said approval is attached.
- The county where your nonprofit is located.
- The initial directors’ names and addresses. There must be at least three directors.
- The mailing address for service of process. This is where the Secretary of State will mail any official or legal documents that it receives on behalf of your nonprofit. In New York, the Secretary of State acts as your registered agent by default. But, you do have the option to appoint your own.
- Provisions required by the IRS. To qualify for tax exempt status, your certificate of incorporation must declare two things. One, that the purpose of your nonprofit is charitable. Two, that it’ll distribute its assets for a charitable purpose should the nonprofit dissolve.
- The incorporator’s name, address, and signature.
- The filer’s name and address. (The filer will likely be the same as the incorporator, but could be different if you chose to have a business attorney file for you.)
Mail your application, along with a $75 filing fee, to the following address:
Department of State
Division of Corporations
State Records and Uniform Commercial Code
One Commerce Plaza
99 Washington Avenue
Albany, NY 12231
Or, email it to the DoS at dosCorpfiling@dos.ny.gov. The Department offers a credit card authorization form that you can use to pay the filing fee by card.
It generally takes one to two weeks for the DoS to process business filings, but you can always opt for expedited processing for an additional fee if you’re in a rush. Here are your options.
- Within 24 hours: $25
- Within the same day: $75
- Within two hours: $150
Make sure to pay this additional fee on a separate credit card authorization form, if you pay by card. Money order and check are also accepted forms of payment.
Step 5: Draft and adopt nonprofit bylaws
Bylaws are your organization's internal rulebook. You don't file them with the state, but the board must formally adopt them at your organizational meeting. This is a necessary meeting that New York NPC Law requires you to hold after incorporation. The IRS also reviews your bylaws when you file Form 1023 for tax exemption.
Nonprofit bylaws can contain any rules or guidelines that relate to your nonprofit’s business, operations, and the rights and powers of its directors, officers, or members. Here are a few important provisions to address:
- Board composition and director terms.
- Director roles and responsibilities.
- Officer titles and duties, such as president, secretary, treasurer, and any others.
- Quorum requirements. This refers to the minimum number of directors who must be present for a meeting to take place or for its actions (decisions) to be binding.
- Voting procedures.
- Conflict of interest policy. This is a requirement under New York nonprofit law. Directors must adopt, implement, and oversee a policy that ensures its directors, officers, and key persons act in the best interest of the organization and comply with legal requirements. Review the Attorney General’s guide for more information.
- Amendment procedures.
You can also work with a business attorney or use an online legal service to help ensure your bylaws cover all the important points. Your bylaws will often act as a supporting document when registering with state and federal agencies, so it's important to create a comprehensive document that adds credibility to your mission.
Step 6: Obtain an employer identification number (EIN) from the IRS
You’ll need a federal employer identification number (EIN or FEIN) to file for tax-exempt status. Some banks may also require an EIN to open a bank account. It’s completely free to obtain an EIN through the IRS website.
But, you can also use LegalZoom’s EIN filing service if you want guidance. Keep in mind, an EIN doesn’t make your organization tax-exempt. It's an identification number that the IRS, banks, and other agencies use to identify your organization.
| Form 1023 | Form 1023-EZ | |
|---|---|---|
| Who qualifies | Most organizations that exist for exempt purposes | Projected gross receipts under $50,000/year; total assets under $250,000 |
| Filling fee | $600 | $275 |
| Filing method | Online at Pay.gov | Online at Pay.gov |
| Average processing time | Six months | One month |
| Supporting documents | Certificate of incorporation, bylaws, tax information authorization (if applicable) | Certificate of incorporation |
After you submit, the IRS will issue a determination letter approving your status, request additional information, or send you a rejection letter. If you’d like some help filing the application, LegalZoom’s 501(c)(3) application service can guide you through the process.
Step 8: Register with the Charities Bureau of the New York Attorney General's Office
Most New York nonprofits that solicit charitable contributions (ask for donations), own property, or just engage in charitable activities will need to register with the Charities Bureau of the Attorney General's Office in advance.
To register online, make an account with the Charities Bureau and file Form CHAR410. The filing fee is $25. Here’s what you’ll need:
- Email and phone number for the account
- EIN
- Previous registration number (only for those who have registered with the Bureau before)
- Name, email, and mailing address of directors, officers, and any other key employees
- Name, address, and contract terms for any professional fundraisers (if applicable)
- Description of charitable purposes (100 words or more)
- Signatures from the president (or another authorized officer) and the chief financial officer or treasurer
- Certificate of Incorporation and bylaws (attach the full documents)
These organizations are exempt:
- Religious organizations
- Charitable organizations run by religious organizations
- Membership organizations that don’t solicit donations from the public
- Parent-teacher associations
- Educational institutions that file annual reports with the NY Department of Education
- Governmental agencies
Note: After registration, there are yearly compliance obligations your organization will need to keep up with, including filing an annual report. More on this below.
Step 9: Apply for New York state tax exemption
Just as forming your NY nonprofit doesn’t automatically make it federally tax-exempt, 501(c)(3) status also won’t automatically make your organization exempt from New York state taxes. You’ll have to apply with the New York State Department of Taxation and Finance for these exemptions.
Here are the main NY state tax exemptions for nonprofits.
- State and local sales tax exemption: Form ST-119.2
- Corporation franchise tax exemption: Form CT-247
- New York state real property tax exemption: Check if you qualify
- New York City real estate tax exemption: File with the NYC Department of Finance
These exemptions are free to apply for.
What it costs to start a nonprofit in New York
While the full cost of starting a nonprofit in New York will vary based on the needs, location, and size of your organization, these are some of the basic costs that you should be aware of.
- Certificate of incorporation: $75
- 24-hour expedited processing: $25 (optional)
- Name reservation: $10 (optional)
- EIN: Free or $79 with guidance from LegalZoom
- Form 1023: $600
- Form 1023-EZ: $275
- New York Attorney General registration (CHAR410): $25
Therefore, the total basic initial cost to start a nonprofit in New York ranges from around $375 to $800. Professional assistance would increase these numbers, but is often worth it for the peace of mind and accuracy.
How long does it take to start a nonprofit in New York?
It’s wise to plan for six to twelve months from your first filing to full recognition. Here’s a breakdown of some of the timelines:
- Certificate of Incorporation: Generally, 7 to 10 business days. 24-hour expedited processing is available for $25.
- EIN application: Typically, same day.
- Form 1023-EZ: Generally, around one month.
- Form 1023: 3 to 12 months: Typically, six months.
- New York Attorney General registration (CHAR410): From several business days to a few weeks depending on the volume of applications.
You technically don't need to wait for 501(c)(3) status before filing Form CHAR410. Filing with the Bureau as soon as you submit Form 1023 or Form 1023-EZ can help save time.
Ongoing New York nonprofit compliance
Once your nonprofit is off the ground, it's important to stay compliant with federal and state laws so that you can keep making a difference.
Federal Form 990 filing requirements
Most Section 501(c)(3) public charities need to file annual reports with the IRS. But, which form you file depends on your organization's size.
- Form 990-N (e-Postcard): Public charities with gross receipts normally under $50,000.
- Form 990-EZ: Public charities with gross receipts under $200,000 and total assets under $500,000.
- Form 990 (full): Public charities with gross receipts of $200,000 or more, or total assets of $500,000 or more.
The deadline for all three is the 15th day of the 5th month after your fiscal year ends (May 15 for a December 31 year-end). If you still haven’t received your determination letter from the IRS by this time, file Form 990 anyway.
Annual filings with the New York Attorney General (CHAR500)
For the nonprofits that need to register with the Charity Bureau, there are yearly compliance requirements to stay ahead of. Registered charitable organizations must file a CHAR500 annual report within 4.5 months after its fiscal year closes (May 15 for a December 31 fiscal year).
Funding or Financial Disclosure Reports
Certain nonprofit organizations will also need to file funding or financial reports with the New York Department of State. There are two types of reports.
- Funding Disclosure Reports. For 501(c)(3) organizations that made an in-kind donation to a 501(c)(4) organization of more than $10,000 during a reporting period.
- Financial Disclosure Reports. For 501(c)(4) organizations that spend more than $10,000 for communications made to 500 or more members of a general public audience that advocate for or against an administrative body, or legislative body that relates to any legislation, rule, regulation, hearing or decision, or action.
To file, you’ll need to create an account with the DoS. The filing fee for either report is $25 and is due within 30 days of the end of the reporting period. Reporting periods are six months long and run from January 1 to June 30 and from July 1 to December 31.
Should you start a new nonprofit or consider an alternative?
New York nonprofits are corporations that require real costs, recurring compliance obligations, and often years of organizational development to build credibility. Before you file, you may want to consider one of these alternative paths.
- Fiscal sponsorship is an arrangement where an established 501(c)(3) acts as the legal and financial backer for your project. Donors can make tax-deductible contributions to your work without you forming a separate legal entity. It's typically faster and far less expensive when your program is still in the early stages.
- Joining an existing organization as a chapter or affiliate gives you immediate infrastructure, credibility, and shared resources without building governance and compliance systems from scratch.
- Forming a coalition with other established nonprofits may accomplish your goal without the overhead of an entirely new legal entity.
If your program is new and your funding base is still forming, honestly evaluate whether an existing structure can carry your work forward before you commit to building from the ground up. But, if building a nonprofit corporation feels right for your cause, LegalZoom is here to help.
FAQs about NY nonprofits
What is the 33% rule for nonprofits?
The 33% rule is an IRS public support test. It requires a public charity, for the most part, to receive at least one-third (33.3%) of its total support from public sources, rather than from a small number of private donors. Public sources include government grants and individual donations.
Can I pay myself if I run a nonprofit?
Yes. Nonprofit founders and executives can receive reasonable compensation for their services. However, the IRS does prohibit compensation that’s excessive or structured to benefit insiders at the expense of the mission.
Can an LLC be a nonprofit in NY?
Technically, no. You can’t form a nonprofit LLC with the New York Department of State. While federal law technically permits an LLC to seek 501(c)(3) status, it’s best to form a nonprofit corporation in New York as New York Not-for-Profit Corporation Law doesn’t recognize LLCs.
Do New York nonprofits need to register before accepting donations?
Yes. Most New York nonprofits, outside religious or certain educational institutions, must register with the Attorney General's Charities Bureau before seeking donations.
What is the difference between a nonprofit corporation and a 501(c)(3)?
A nonprofit corporation is a legal entity, governed by state law, that you can form by filing a Certificate of Incorporation or Articles of Incorporation, depending on the state.
501(c)(3) is a federal tax designation that the IRS grants qualifying organizations. It exempts those organizations from federal income tax and allows donors to deduct contributions.
Forming a nonprofit corporation doesn’t automatically grant your organization 501(c)(3) status. You must apply for each separately.
What is the New York Attorney General Charities Bureau and when must you register with it?
The Charities Bureau is the division of the New York Attorney General's office that regulates charitable organizations operating in New York. Most nonprofits that seek donations, own property, or engage in charitable activities will need to register with the Bureau.
What is a CHAR500 and when is it due?
CHAR500 is an annual financial report that registered New York charities must file with the Attorney General's Charities Bureau. It’s due within 4.5 months after your fiscal year closes (May 15 for a December 31 year-end).
What ongoing annual filings does a New York nonprofit need to complete?
While annual filings will depend on the organization, three recurring filings apply to most New York nonprofits.
- IRS Form 990 (990-N, 990-EZ, or full 990 depending on revenue): Due the 15th day of the 5th month after your fiscal year ends.
- CHAR500 with the Attorney General's Charities Bureau: Due within 4.5 months of fiscal year end.
- Funding or Financial Disclosure Reports with the DoS: Due within 30 days of the end of a reporting period (January 1 to June 30 or July 1 to December 31).
What is IRS Form 990 and which nonprofits must file it?
Form 990 is the annual information return that 501(c)(3) organizations file with the IRS. There are a few different versions of the report that vary based on the size of your organization.
- Form 990-N (e-Postcard): Public charities with gross receipts normally under $50,000.
- Form 990-EZ: Public charities with gross receipts under $200,000 and total assets under $500,000.
- Form 990 (full): Public charities with gross receipts of $200,000 or more, or total assets of $500,000 or more.
'%20/%3e%3c/svg%3e)
'%3e%3cpath%20fill-rule='evenodd'%20clip-rule='evenodd'%20d='M9.31239%2025.5316H13.0679V14.1032H9.31239V25.5316ZM11.1913%208.46875C9.93945%208.46875%209%209.25086%209%2010.505C9%2011.5995%209.78211%2012.5389%2011.1913%2012.5389C12.6005%2012.5389%2013.3826%2011.5995%2013.3826%2010.505C13.3826%209.4082%2012.6005%208.46875%2011.1913%208.46875ZM27%2018.9577V25.5316H23.2445V19.4275C23.2445%2017.8609%2022.6174%2016.7664%2021.3679%2016.7664C20.2711%2016.7664%2019.644%2017.5463%2019.3316%2018.1756C19.1743%2018.488%2019.1743%2018.8004%2019.1743%2019.1128V25.5316H15.4165V13.9458H19.1743V15.5123C19.644%2014.7302%2020.5835%2013.6357%2022.6174%2013.6357C25.1234%2013.7908%2027%2015.3573%2027%2018.9577Z'%20fill='white'/%3e%3c/g%3e%3cdefs%3e%3cclipPath%20id='clip0_952_9489'%3e%3crect%20width='18'%20height='18'%20fill='white'%20transform='translate(9%208)'/%3e%3c/clipPath%3e%3c/defs%3e%3c/svg%3e)
