Quick answer: To start a nonprofit in California, you form a nonprofit public benefit corporation with the Secretary of State ($30 filing fee), file a Statement of Information, apply for federal tax exemption with the IRS, apply for state exemption with the Franchise Tax Board, and register with the Attorney General's Registry of Charitable Trusts. Then you need a board, bylaws and a plan to fund your programs, which is where grant writing comes in.
Step 1: Plan your mission and board
Write a clear mission statement and recruit a founding board of directors. Draft bylaws that explain how the board makes decisions, holds meetings and handles conflicts of interest.
Step 2: File Articles of Incorporation
File Articles of Incorporation for a nonprofit public benefit corporation with the California Secretary of State. The filing fee is $30.
Step 3: File a Statement of Information
File the Statement of Information (Form SI-100) within 90 days of incorporating, then every two years. The fee is $20.
Step 4: Get an EIN and apply for federal tax exemption
Get a free Employer Identification Number (EIN) from the IRS. Then apply for 501(c)(3) status using IRS Form 1023 or, for eligible smaller organizations, the shorter Form 1023-EZ. Both are filed online and have IRS user fees, so check irs.gov for current amounts.
Step 5: Apply for California tax exemption
File with the Franchise Tax Board. Use Form 3500A if you already have your IRS determination letter, or Form 3500 if you don't.
Step 6: Register with the Attorney General
Register with the Registry of Charitable Trusts using Form CT-1 within 30 days of first receiving charitable assets. The fee is $50.
Step 7: Stay compliant every year
IRS Form 990 (990-N, 990-EZ or 990, depending on size)
Attorney General Form RRF-1 with your 990
Franchise Tax Board Form 199 or 199N
Statement of Information every two years
Step 8: Fund your programs
Most new nonprofits run on grants, donations and contracts. Learning to find grants and write strong proposals is often the difference between a nonprofit that grows and one that stalls.
Grant Writing Certificate: 20 hours, $595, live online or in San Bernardino. Covers finding grants, need statements, budgets, logic models and submitting a complete proposal.
Government Contracting Academy: nonprofits can win government contracts too. $1,497 or 3 payments of $499.
The Ayangbah Foundation is itself a California 501(c)(3), founded by Dr. Shirley Ayangbah, who teaches grant writing and nonprofit leadership.
Frequently asked questions
How much does it cost to start a nonprofit in California?
State filing fees include $30 for Articles of Incorporation, $20 for the Statement of Information and $50 for Attorney General registration, plus the IRS user fee for Form 1023 or 1023-EZ.
Can I start a nonprofit in California with no money?
Not quite for free, but state fees are low. The biggest cost is usually the IRS application fee, and many founders also invest time in learning grant writing to fund the work.
How long does it take to start a nonprofit?
Incorporating can be quick. IRS tax-exempt approval often takes the longest, so file early.
Where can I learn grant writing in the Inland Empire?
The Ayangbah Foundation's Grant Writing Certificate, in San Bernardino or live online. Call or text (909) 454-7076, or apply now.
This guide is general information, not legal or tax advice. Confirm current requirements with the California Secretary of State, Attorney General, Franchise Tax Board and IRS.