How to Start a Nonprofit in California

California is home to over 190,000 registered nonprofits — more than any other state. Whether you are starting a community arts program in Los Angeles, an environmental group in the Bay Area, or a social services organization in Sacramento, the process follows the same steps. Here is the complete guide.

Step 1: Choose a Name and Define Your Mission

Your nonprofit name must be unique in California. Search the California Secretary of State business database to check availability. California requires the name to include a corporate ending like "Corporation," "Incorporated," "Company," or an abbreviation (Corp., Inc., Co.).

Before filing, draft a clear mission statement. This will appear in your Articles of Incorporation and on your IRS application. A strong mission statement is specific enough to guide your programs but broad enough to allow growth. "To provide after-school tutoring for underserved students in San Diego County" is better than "To help children."

Step 2: Recruit a Board of Directors

California requires a minimum of one director for a nonprofit corporation, but the IRS strongly prefers at least three unrelated board members for 501(c)(3) approval. Recruit people who bring diverse skills — fundraising experience, financial management, legal knowledge, and connections to the community you serve. Board members must be at least 18 years old.

Step 3: File Articles of Incorporation

File Articles of Incorporation for a California Nonprofit Public Benefit Corporation with the Secretary of State. You can file online through bizfile Online or by mail.

• Filing fee: $30
• Processing time: Online filings are typically processed within 1-3 business days. Mailed filings can take 2-4 weeks.
• Required language: Your articles must include specific IRS-required clauses about your exempt purpose and dissolution provisions (assets must be distributed to another 501(c)(3) upon dissolution). Use the California Attorney General's model articles as a template to ensure compliance.

Step 4: Obtain an EIN

Apply for an Employer Identification Number (EIN) from the IRS — free, online, and instant at IRS.gov. You need this before opening a bank account or applying for tax-exempt status.

Step 5: Adopt Bylaws and Hold an Organizational Meeting

Draft bylaws that govern how your nonprofit operates: meeting schedules, officer roles, voting procedures, conflict-of-interest policies, and amendment processes. Hold an initial board meeting to adopt the bylaws, elect officers, and authorize opening a bank account. Keep detailed minutes — the IRS may ask for them.

Step 6: Apply for Federal Tax-Exempt Status

File IRS Form 1023 (full application) or Form 1023-EZ (streamlined version).

• Form 1023-EZ: Fee is $275. Available to organizations expecting less than $50,000 in annual gross receipts and less than $250,000 in total assets. Processing time: 2-4 weeks.
• Form 1023: Fee is $600. Required for larger organizations. Processing time: 3-6 months (sometimes longer).

The IRS determination letter confirming your 501(c)(3) status is the most important document in your nonprofit's life. It enables tax-deductible donations and opens the door to grants, most of which require proof of exempt status.

Step 7: Register with the California Attorney General

All California nonprofits that solicit donations must register with the Registry of Charitable Trusts. File Form CT-1 (Initial Registration Form) and a copy of your Articles of Incorporation.

• Filing fee: $25
• Ongoing requirement: File Form RRF-1 (Annual Registration Renewal Fee Report) every year. The fee ranges from $25 to $1,200 based on gross revenue.

Step 8: California State Tax Exemption

California does not automatically grant state tax exemption when you receive federal 501(c)(3) status. File Form FTB 3500A (Submission of Exemption Request) with the Franchise Tax Board to claim exemption from California corporate income tax. If your organization qualifies, you can use the streamlined process — submit your IRS determination letter and the form, and California will typically confirm exemption within 4-6 weeks.

Step 9: Register for Raffles (If Applicable)

If your nonprofit plans to hold raffles as a fundraising activity, California requires separate registration with the Attorney General's Registry of Charitable Trusts. Annual raffle reports must also be filed.

Step 10: Start Fundraising

With your state and federal registrations in place, you are ready to accept tax-deductible donations. Setting up an online donation page is one of the first things new nonprofits should do — over 54% of donors prefer to give online.

GiveLink makes this easy for new California nonprofits: transparent 1% pricing, no monthly fees, and AI-powered tools that help you manage donors from day one. Learn more about the best platform for small nonprofits.

Total Costs Summary

Item	Cost
Articles of Incorporation (Secretary of State)	$30
EIN (IRS)	Free
IRS Form 1023-EZ	$275
IRS Form 1023 (if applicable)	$600
Attorney General registration (CT-1)	$25
State tax exemption (FTB 3500A)	Free
Total (minimum path)	$330
Total (full 1023 path)	$655

Timeline

Step	Duration
Incorporation (online)	1-3 business days
EIN	Instant (online)
Bylaws and organizational meeting	1-2 weeks
IRS determination (1023-EZ)	2-4 weeks
IRS determination (full 1023)	3-6 months
Attorney General registration	2-4 weeks
State tax exemption	4-6 weeks
Total (minimum)	2-3 months
Total (full 1023)	5-8 months

California-Specific Considerations

• Charitable solicitation: California requires registration before you solicit ANY donations. Do not launch a fundraising campaign until your CT-1 is filed.
• Annual filings: California nonprofits must file Form 199 or 199N (the state equivalent of the IRS 990) with the Franchise Tax Board AND Form RRF-1 with the Attorney General. Missing these filings can result in suspension of your tax-exempt status.
• Raffle law: California is one of the few states with specific raffle registration requirements. If you plan to sell raffle tickets, research the requirements before your first event.
• Workers' compensation: If you hire employees (even one), California requires workers' compensation insurance from day one.

Next Steps

Once your nonprofit is official, focus on building your fundraising infrastructure. Read our guides on fundraising ideas for your organization type and choosing the best platform for recurring giving.