How to Start a Nonprofit in Virginia

Virginia has 45,151 active 501(c)(3) organizations, 3,482 of them approved in the last twelve months, up from 3,200 the year before. 77.0% report no revenue on file or under $50,000. Its formation fee is low and its state code sets every figure, which makes it one of the easier states to budget for accurately, and its sales tax exemption carries a test that most states do not have.

The federal half of this is identical in every state and is set out on the state hub: incorporate, adopt bylaws, get an EIN, apply to the IRS on Form 1023 or 1023-EZ. This page covers what Virginia adds, what each step costs, and the two or three things that catch people out here specifically.

What it costs in Virginia

The state filings come to $75 in cash. Charity registration with the Department of Agriculture and Consumer Services adds a $100 initial fee before any solicitation, and a $25 annual registration fee is due to the State Corporation Commission each year. On top of that sits the IRS user fee, which is set each year by revenue procedure and shown on Pay.gov when you file, so no figure for it is printed here. Every amount above was read from the issuing agency’s own fee schedule or form, and each one is linked in the sources at the foot of this page. Fees change: check before you budget.

The order to do it in

Sequence matters more than speed. The IRS application asks for documents the state has to create first, and the state charity regulator wants the organization to exist before it registers.

• Decide whether you need a corporation at all. Fiscal sponsorship gives a project the same tax treatment with no incorporation, no IRS application and no annual return. For a project under a few thousand dollars a year it is usually the better answer.
• File the formation document with the Virginia State Corporation Commission, with the IRS purpose and dissolution language in it. Our articles template carries both.
• Adopt bylaws and appoint the board before the IRS application, which asks about governance. The bylaws template and the board guide cover what that means in practice.
• Get an EIN. Free, online, immediate, and needed for the bank account. Do not pay anyone for it: the EIN guide explains why people do.
• Apply to the IRS on Form 1023-EZ if you qualify, which most new organizations do, or the long Form 1023 if you project gross receipts over $50,000 or hold assets over $250,000.
• Handle the state exemptions and registrations in the section below, once the determination letter arrives.

What catches people out in Virginia

The $75 is two fees, and a third arrives every year. The Code of Virginia sets a $25 fee for filing articles of incorporation and a separate $50 charter fee on incorporation, which is where the $75 most guides quote comes from. What they leave out is section 13.1-936.1: a $25 annual registration fee, due by the end of the twelfth month after the month you incorporated and every year after, alongside the annual report.

Charity registration comes before the first ask. The Department of Agriculture and Consumer Services requires an initial registration statement prior to any solicitation, unless the organization is exempt. The initial fee is $100; an organization with no financial history pays no annual fee on top in its first registration. After that the annual fee runs from $30 for contributions up to $25,000 to $325 above $1m. Organizations that qualify for an exemption file Form 100 instead, for $10.

Sales tax exemption has a 40% overhead test. Virginia Tax grants the exemption to 501(c)(3), (c)(4) and (c)(19) organizations whose annual administrative costs, including salaries and fundraising, do not exceed 40% of annual gross revenue. Organizations with $750,000 or more of gross revenue must provide a financial review by an independent CPA, and above $1.5m an audit may be required. Applying is free, through Nonprofit Online or on Form NP-1.

What Virginia’s nonprofit sector looks like

From the IRS Business Master File, which lists every organization whose exemption has not been revoked.

The size column is the one worth sitting with before you file. 77.0% of Virginia’s charities have no revenue figure on file or report under $50,000, against 77.4% nationally. The typical outcome of starting a nonprofit here is a very small organization, which is not an argument against doing it, but it is an argument for choosing the cheap route first and for being honest in the projections on the IRS form. What the whole thing costs, federal and state together, is set out in what it costs to start a nonprofit.

A realistic timeline

Written as weeks rather than as a list, because the waiting is the part people plan badly. Nothing here assumes you pay anyone to do it for you.

1. Week one. Agree the purpose, the name and the first board.
2. Week one or two. File the articles of incorporation with the State Corporation Commission for $75, the $25 filing fee and the $50 charter fee, with the IRS purpose and dissolution clauses included.
3. Same week. Apply for the EIN online. Free and immediate.
4. Month one. Adopt bylaws, hold the first board meeting and open the bank account.
5. Before any solicitation. Register with the Department of Agriculture and Consumer Services on Form 102, $100 initially, or claim an exemption on Form 100 for $10.
6. Month one or two. File Form 1023-EZ if you qualify, or the long Form 1023.
7. When the determination letter arrives. Apply for the sales tax exemption through Nonprofit Online. Free.
8. Every year. The $25 annual registration fee and annual report to the State Corporation Commission, and the charity registration renewal.

The long pole is the IRS, not Virginia. The state end of this is measured in days and costs $75. Everything after the determination letter is either free or a form with a copy of that letter stapled to it.

What kind of charities Virginia has

The Business Master File classifies each organization by activity. The six commonest categories in Virginia account for 23,484 organizations between them:

• Religion related: 5,413 organizations
• Education: 5,149 organizations
• Human services: 4,438 organizations
• Arts, culture and humanities: 3,255 organizations
• Recreation and sports: 2,756 organizations
• Philanthropy and grantmaking: 2,473 organizations

That mix is worth checking against what you are planning. The largest category in every state is religion related, which is a reporting artifact as much as a fact, since churches are exempt automatically and many register anyway. The categories underneath it are the real map of what gets funded locally, and an organization entering a crowded category needs a sharper answer to the question of why it should exist separately than one entering a thin one.

Approvals in Virginia are rising

The file carries a determination date for every organization, so the last two years can be compared directly. Virginia had 3,482 approvals in the last twelve months against 3,200 in the twelve before that, a change of +8.8%. Nationally the last twelve months produced 119,025.

Read that as competitive context rather than as a verdict. More approvals means more organizations chasing the same local funders, and it also means the process is working normally for people like you. What it does not tell you is how many of them are still operating in three years, which the file cannot say, because it keeps listing an organization until its exemption is actually revoked.

After approval

The annual obligations start immediately and they run on two calendars. Federally, a return is due every year from the first full tax year, and three consecutive misses means automatic revocation with no appeal: which return applies is covered in which Form 990 you file. In Virginia, the filings in the table above renew on their own cycle. If the organization eventually sells anything or lets space, selling products and renting out space cover the tax treatment, and if it does not work out, closing properly is its own process.

Method and sources

Every fee and form on this page was read from the issuing agency’s own page or form on 6 October 2026, listed in the sources below. Nothing here is copied from another guide. The IRS user fee is not stated because the form instructions point to a revenue procedure and to Pay.gov rather than printing an amount.

The counts are from the IRS Exempt Organizations Business Master File, filtered to subsection 03, with determinations through August 2026. Three limits carry over from that file: it includes organizations that are dormant but not yet auto revoked, the ruling date is when the IRS decided rather than when anyone applied, and revenue is blank for most small organizations, which is why the size row reads “no revenue on file or under $50,000” rather than giving a median. State is the organization’s own mailing address. This page is general information and not legal advice.

This is reference information, not legal or tax advice. Rules vary by state and change over time. For a decision that carries real consequences, check the current text at irs.gov or your state registry, and talk to a nonprofit attorney or CPA.