Subscribe to our newsletter. You've got an idea for new nonprofit, maybe an afterschool childcare program or an art gallery, but you're not sure how much it will cost. If you file your own forms, you can incorporate and apply for tax-exempt status without spending more than a few hundred dollars. But what happens afterwards determines how much money you'll really need to carry out your programs. When you're starting up a new organization, you'll need to estimate how much money you'll need each year for the first three years.
Many nonprofits operate on limited budgets by depending on the work of volunteers.
No matter how modest your operation, you will have expenses. If so, you'll need to set salary levels, calculate benefits, payroll taxes and workers' compensation insurance. Look at classified job listings to get an idea of salary ranges in your community for different jobs. If you need staff with special qualifications such as social workers, teachers and so on, find out what the going salaries are for those specialties. Professional and trade associations are good places to ask about salary levels for their members.