Are you considering launching a mission-based organization in The Keystone State? The process involves completing two distinct steps: incorporating as a nonprofit corporation in the state and separately obtaining federal 501(c)(3) status through the IRS.
This guide walks you through every stage in the right order, from choosing a name and filing your articles of incorporation to registering to solicit charitable contributions and meeting ongoing compliance obligations. The steps here apply specifically to Pennsylvania nonprofits seeking 501(c)(3) status.
How to start a nonprofit in Pennsylvania at a glance
- Forming a nonprofit corporation and obtaining federal 501(c)(3) status are two separate steps. You must complete both to legally operate a tax-exempt organization.
- Pennsylvania nonprofits file articles of incorporation with the Department of State, Bureau of Corporations and Charitable Organizations ($125 filing fee).
- After incorporating, most Pennsylvania nonprofits must publish a notice of incorporation in two newspapers—one legal journal and one general-circulation paper—in the county where the registered office is located.
- Apply for 501(c)(3) status by filing IRS Form 1023 (user fee: $600) or Form 1023-EZ (user fee: $275) after incorporation.
- Nonprofits that solicit charitable contributions in Pennsylvania must register with the Pennsylvania Bureau of Charitable Organizations before fundraising begins.
- Pennsylvania nonprofits must file an annual report with the Department of State.
Difference between a nonprofit and 501(c)(3) status
A nonprofit corporation is a legal entity formed under state law. It requires filing articles of incorporation with the Pennsylvania Department of State, Bureau of Corporations and Charitable Organizations, to make your organization a recognized legal entity that can open bank accounts, sign contracts, and operate legally in the state. But state incorporation alone does not make your organization tax-exempt, and it does not make donations tax-deductible.
501(c)(3) status is a federal tax designation the IRS grants under Section 501(c)(3) of the Internal Revenue Code. It exempts your organization from federal income tax, allows donors to deduct contributions, and is required by most foundations and government grant programs before awarding funds.
Incorporating without obtaining 501(c)(3) status leaves you with a legal entity that still owes taxes, and applying for 501(c)(3) status without first incorporating gives the IRS nothing to recognize.
| Nonprofit corporation | 501(c)(3) status | |
|---|---|---|
| What it is | A state-chartered legal entity | A federal tax-exempt designation |
| Who grants it | Pennsylvania Department of State, Bureau of Corporations and Charitable Organizations | IRS |
| What it covers | Legal existence, ability to contract, limited liability for directors | Exemption from federal income tax, tax-deductible donations, eligibility for most grants |
| What it does NOT cover | Tax exemption of any kind | State incorporation or legal entity status |
How to start a nonprofit in Pennsylvania: Step-by-step
Follow along to learn how to incorporate a nonprofit in Pennsylvania, apply for tax-exempt status, and be able to solicit donations.
Step 1: Choose a name for your Pennsylvania nonprofit
Before you file articles of incorporation for a nonprofit in Pennsylvania, you must choose a name.
Your nonprofit's name cannot be recognizably similar to any other entity name already on record with the state. Your name should also clearly reflect your exempt purpose. Pennsylvania doesn't require a specific word like "Foundation" or "Association," or entity designators like other states require, but it’s good practice to choose a name that signals your mission and makes it easier for donors, grantors, and the IRS to understand what you do.
Search name availability before filing your formation documents, either using the Department of State's business entity database or LegalZoom’s free Pennsylvania business name lookup tool below. Read more in our comprehensive guide to choosing a business name in Pennsylvania.
Free Pennsylvania Business Name Check
Starting a nonprofit? Use our free name check tool to check your business name against Pennsylvania Department of State records.
By clicking "Check Availability," I agree to LegalZoom's Terms of Use. This search is a preliminary check of state databases and does not include variations or trademarks. Results do not guarantee name availability or compliance with legal requirements.
If your preferred name is available but you're not ready to file your articles of incorporation, you can reserve it for 120 days for a $70 fee.
Step 2: Appoint incorporators and recruit your initial board of directors
An incorporator is the person who signs and files your articles of incorporation. They don’t need to be a director—their function is to execute and submit the formation documents.
Directors govern the organization, set policy, and carry fiduciary responsibility, which is a legal duty to act in the organization's best interest. Pennsylvania nonprofit board requirements state that a nonprofit must have at least one director, and there needs to be at least a president, secretary, and treasurer. While these roles may be filled by the same person, it’s generally recommended that nonprofits have at least three directors.
Recruit your initial nonprofit board of directors in Pennsylvania before you file. You'll need their information for organizational records, and they'll need to formally adopt your bylaws and elect officers at your first board meeting.
Step 3: Designate a registered office
Part of Pennsylvania nonprofit corporation requirements include maintaining a registered office with a physical street address in Pennsylvania (P.O. boxes are not acceptable). This is where the state delivers legal notices and important paperwork to your organization.
Your organization's own address works if you have a permanent Pennsylvania location. If you're operating from a home address or don't yet have a stable location, a commercial registered agent for your nonprofit Pennsylvania, such as LegalZoom’s registered agent service, can take on this role.
Step 4: File your articles of incorporation with the Pennsylvania Department of State
You’ll file your formation paperwork, including the following, with the Department of State, Bureau of Corporations and Charitable Organizations:
- Articles of incorporation. These are your official formation documents with the state. Be prepared to provide the organization's name, registered office address, a statement of purpose, the names of the incorporators, and the effective date.
- Docketing statement. This confirms important tax information is associated with your organization.
Submit online by logging into Pennsylvania’s Business Hub, or print the forms and send by mail to the following address:
Pennsylvania Department of State
Bureau of Corporations and Charitable Organizations,
P.O. Box 8722
Harrisburg, PA 17105-8722
Processing should take about 3–5 business days. If you plan to apply for 501(c)(3) status, make sure that you include specific language suggested by the IRS in your articles:
- Purpose clause. A statement expressly limiting the organization's activities to one or more 501(c)(3)-exempt purposes: charitable, educational, religious, scientific, or literary.
- Private inurement prohibition. A clause stating that none of the organization's earnings will benefit any private individual.
- Dissolution clause. A provision directing that, upon dissolution, assets will be distributed to another 501(c)(3) organization or to a government entity for a public purpose.
Step 5: Publish notice of incorporation
Pennsylvania requires nonprofits to advertise their incorporation in two newspapers in the county where the registered office is located, preferably in one legal journal and one newspaper of general circulation.
The published notice must include:
- The name of the proposed nonprofit corporation
- A statement that it has been (or is to be) incorporated under the Nonprofit Corporation Law of 1988
Each newspaper will provide an affidavit of publication. Keep these with your corporate records, but you don't need to file them with the Pennsylvania Department of State. Publication fees vary by county, so contact your county's legal journal directly for current rates.
Step 6: Draft and adopt your nonprofit bylaws in Pennsylvania
Bylaws govern how your board operates, how decisions get made, and what happens if issues arise. You don't file bylaws with the state, but the IRS requires them as part of your 501(c)(3) application. Your board must formally adopt bylaws and a conflict-of-interest policy before submitting that application.
When determining your nonprofit bylaws, keep in mind that they should cover the following:
- Name and purpose, consistent with your articles
- Board of directors, including minimum size, election procedures, term lengths, and removal process
- Officer roles, at minimum a president, secretary, and treasurer
- Meeting requirements, including frequency, quorum, and advance notice
- Voting procedures, including any supermajority requirements for major actions
- Conflict-of-interest policy, which establishes how directors disclose and recuse themselves from decisions where they have a personal financial interest
- Amendment procedures, for future changes
- Dissolution clause, which must mirror the dissolution language in your articles
A missing conflict-of-interest policy or vague governance structure often triggers IRS follow-up questions that could extend your application approval timeline.
Step 7: Obtain a federal tax ID
An EIN is a federal tax ID number issued by the IRS, the organizational equivalent of a Social Security number. You need an EIN to open a business bank account, apply for federal tax-exempt status, file your annual IRS Form 990 (Return of Organization Exempt From Income Tax), and apply for grants. Contrary to what the name suggests, you don't need employees to get one.
Apply for an EIN on the IRS’ website, or use LegalZoom’s EIN service, which fills out your application for you.
Step 8: Apply for federal 501(c)(3) tax-exempt status
Once your articles of incorporation are approved and you have an EIN, you can apply for 501(c)(3) tax-exempt status with the IRS. You have two application options depending on your organization's projected size:
- Form 1023 (full application). This application is required for most organizations. The filing fee is $600, and processing typically takes approximately six months. The standard Form 1023 must be submitted electronically through Pay.gov.
- Form 1023-EZ (streamlined application). This application is available to organizations projecting gross receipts of $50,000 or less annually for the first three years and total assets of $250,000 or less. The filing fee is $275. Form 1023-EZ is typically processed within 22 days.
The IRS will review your articles, bylaws, and financial projections. The purpose clause, private inurement prohibition clause, and dissolution clause from Step 4 must be present, or the application will be rejected.
Once approved, you receive a determination letter from the IRS, and your 501(c)(3) status is retroactive to your date of incorporation. Donations received during the application period can be treated as tax-deductible once approval comes through.
Step 9: Apply for Pennsylvania state sales tax exemption
Federal 501(c)(3) approval automatically exempts nonprofits from Pennsylvania corporate income tax, but not sales tax.
For Pennsylvania nonprofit tax exemption from sales tax, file the Application for Sales Tax Exemption (either online through your Pennsylvania Tax Hub account, by fax to (717) 787-3708, or by email to ra-rvtrotaxspecialty@pa.gov) with the Pennsylvania Department of Revenue. Include a copy of your IRS Form 990 or year-end treasurer's report, IRS 501(c)(3) determination letter, bylaws, articles of incorporation, and most recent financial statement.
This specific state tax-exempt status for nonprofits in Pennsylvania applies only to purchases directly related to your exempt purpose.
Step 10: Undergo nonprofit charitable solicitation registration in Pennsylvania
If your organization will solicit charitable contributions from Pennsylvania residents, including through online fundraising, email campaigns, or social media, you must register with the Pennsylvania Bureau of Charitable Organizations. This applies even if your organization is based outside Pennsylvania but solicits Pennsylvania donors.
The initial registration fee is on a sliding scale: $15 for organizations receiving under $25,000 annually and up to $250 for those receiving over $500,000. As part of Pennsylvania nonprofit registration requirements, registration must be renewed annually and requires submitting financial documentation, including a copy of your IRS Form 990.
Nonprofit compliance in Pennsylvania: After formation
You’ll need to keep up with a few compliance tasks with the state and IRS to maintain your nonprofit status and stay in good standing.
File an annual report for your nonprofit in Pennsylvania
There is no nonprofit filing fee in Pennsylvania, but most domestic and foreign entities in PA must file an annual report by June 30 each year. This relatively recent change stems from Act 122 of 2022, which replaced Pennsylvania's old once-every-ten-years reporting system.
Entities file their first annual report the year following formation. The report includes the organization's name and jurisdiction of formation, registered office address, the name of at least one director, the names and titles of principal officers, and the address of the principal office. You can file your annual report through your Pennsylvania Business Hub account.
Failure to file your annual report can result in administrative dissolution.
Renew charitable solicitation registration
Your Pennsylvania charitable organization registration renewal is due by the 15th day of the 11th month following the close of your fiscal year. So, for a December 31 fiscal year end, the due date of your registration renewal is November 15 of the next year.
Visit the Department of State’s Information for Charitable Organizations web page to learn which form you need to submit and what documentation is required.
File IRS Form 990
Most 501(c)(3) organizations must file an annual information return with the IRS. This is a public disclosure document reporting your finances, governance, and program activities.
Which form you file depends on gross receipts:
- Form 990-N (“e-Postcard”). Gross receipts of $50,000 or less.
- Form 990-EZ. Gross receipts under $200,000 and total assets under $500,000.
- Form 990 (full form). Gross receipts of $200,000 or more or total assets of $500,000 or more.
The deadline is the 15th day of the fifth month after your fiscal year ends. If your organization fails to file for three consecutive years, the IRS automatically revokes its tax-exempt status. Reinstatement requires a new 501(c)(3) application and the full IRS user fee.
How much does it cost to start a nonprofit in Pennsylvania?
| Step | State or federal | Fee | Notes |
|---|---|---|---|
| Articles of incorporation | State | $125 | Required to legally operate in Pennsylvania |
| Name reservation (optional) | State | $70 | Holds your chosen organization name for 120 days |
| Newspaper publication | State | Fees vary | Contact your county legal journal and local newspapers for current rates |
| EIN application | Federal | $0–$79 | Fee depends on if you use a professional EIN service |
| 501(c)(3) application (Form 1023) | Federal | $275–$600 | Fee depends on which form you file |
| Charitable solicitation registration statement | State | $15–$250 | Fee depends on annual contributions received |
A small organization qualifying for Form 1023-EZ should budget a minimum of roughly $500–$600 in mandatory startup fees: $125 for articles, $275 for the IRS 501(c)(3) application fee, publication costs, and the charitable solicitation registration fee. A larger organization filing the full Form 1023 faces a minimum of approximately $825–$1,000. Neither figure includes optional costs like name reservation, professional registered agent services, or attorney fees.
How long does it take to start a nonprofit in Pennsylvania?
The amount of time it takes to start a nonprofit in Pennsylvania depends on state and federal agency document processing times.
| Stage | Estimated time frame |
|---|---|
| Pennsylvania articles of incorporation | 3–5 business days |
| Newspaper publication | A few weeks |
| EIN application | Immediate if submitted online |
| IRS Form 1023-EZ | Approximately 22 days |
| IRS Form 1023 (full application) | Approximately six months |
| Pennsylvania state sales tax exemption | Varies; confirm directly with the Department of Revenue |
| Charitable solicitation registration | Varies; confirm directly with the Bureau of Charitable Organizations |
Don't wait on the IRS Form 1023 approval to complete other steps. Charitable solicitation registration, the state sales tax exemption application, and organizational setup can all move forward while your 501(c)(3) application is pending.
Start your Pennsylvania nonprofit with LegalZoom
Ready to get your Pennsylvania nonprofit up and running? Register your nonprofit in 3 easy steps with LegalZoom. We'll assemble your documents and file them directly with the Pennsylvania Department of State. Become one of the more than 100,000 nonprofit organizations we’ve helped launch operations so that they can fulfill their missions.
FAQs about starting a nonprofit in Pennsylvania
Can I start a nonprofit by myself in Pennsylvania?
Yes, you can technically start a Pennsylvania nonprofit by yourself. One person can serve as the sole incorporator and can take on the roles of all three required directors. However, a best practice (and IRS recommendation) is to include at least three directors on the initial board. Keep this in mind as you learn how to start a nonprofit in Pennsylvania.
It’s also wise to have an experienced business formation professional review your paperwork. Nonprofits are heavily scrutinized for tax purposes, and any mistake can cause issues for you down the road.
What is the 80/20 rule for nonprofits?
The 80/20 rule is a general operational guideline—not a legal requirement—suggesting that nonprofits spend at least 80% of revenue on program activities and no more than 20% on administrative and fundraising costs. Some grantmakers and watchdog organizations use this ratio to evaluate efficiency. It is not codified in Pennsylvania nonprofit law or IRS regulations.
Can a Pennsylvania nonprofit apply for grants before getting 501(c)(3) status?
Many Pennsylvania nonprofit grant requirements, as well as those of private foundations, require obtaining 501(c)(3) status before being awarded funds. Two exceptions exist: fiscal sponsorship arrangements, where an existing 501(c)(3) receives and administers the grant on your behalf, and certain government grants that accept newly formed nonprofits without 501(c)(3) status. Check each program's eligibility requirements individually.
Edward A. Haman, Esq., contributed to this article.
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